Discover and read the best of Twitter Threads about #coveredcall

Most recents (4)

PPFAS agm2022

A thread

*Views are personal. Retweet if you like. Mute if you don't like. ;)

#onefund #ppfas
Neil, talks about value of cash and how fund is absolutely fine holding cash. Had 28% cash almost in 2018.

The returns would be lumpy. Minimum 5 years if not more

Underperformance is guaranteed in short term, so is volatility.

Over long term, the returns are satisfactory
Do you have a process or plan to invest. The fund prefers to follow their own plan. Circle of competence about 500 stocks.

Can't Chase / pick up all opportunity.

I recall, last few years their were question on some Spanish companies like Zara or Chinese companies.
Read 68 tweets
1/ The #PhysicalVersusPaper discussion and the effect on silver’s price can be a heated topic. Part of the last “#spaces” event we touched on various #derivative products constructed by BofA and JP Morgan.
2/ Expanding on this topic where #Silver (the actual metal) is used as a ploy to create publicly traded #investments, let’s look at 2 more traded #securities.
3/ Just like buying processed food, what is on the front of the box may not necessarily have anything to do with the actual ingredients listed on the back label. Remember to read the #nutritional facts in the prospectus before consuming.
Read 11 tweets
1- Options & Earnings - A new thread!

Every option rises in price in anticipation of earnings. This is related to the increase of anticipated volatility (yo vega, she's back).

#fintwit #mintwit $option $AG #option #optiontrades
2 - But why?

Actually it's simple: earnings are a casino event for the stonk. Nobody knows what will happen, will the stonk crash or rise? Earnings are thus binary, it's a yay or a nay (UK ref. for you @BuyingMyFreedom). Movements post earnings are stronger as well.
3 - Here comes Mr. Market Maker. Mr. MM knows this, and they want more money for these call/put options, since they have to secure themselves against more risk.

Makes sense, in classic markets, I sold options on my underlying stonk for premium (#coveredcall).
Read 9 tweets
There is no difference in payoff of Covered Call or Short Put. ImageImage
✓Covered call basically portfolio/investment hedge strategy.
✓If u hv long stock then u can manage it for extra credit without any cost. By pledge script.
✓Short put basically trading strategy when u r bullish on stocks/index.
✓Covered call need extra margin but short put can be done with quite gud margin facility,
✓u can hedge with far otm put then margin too low. ImageImageImage
Read 8 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!