Originally Posted by LandGreen2

Is there more than 1 subscription available at MF? Or is it the Discovery Everlasting Stocks you recommend?

Originally Posted by mispoken

I would not recommend any of the higher priced subscriptions. Stock Advisor and Rule Breakers are all you need. They’re very affordable, sometimes intro offers for $99 for the year.

Originally Posted by Seneca Pilot

Tasty Trade is good.

Covered calls are really simple. Option contracts are 100 shares. You can do weekly expirations and monthly expirations. You pick a stock you like, buy 100 shares and then you can sell calls against your shares.

Example:

Stock XYZ you buy for 100$ and sell 120 calls against it. Calls sell for .40cents and expire in 8 days. You collect 40 dollars and if the stock is below 120 on expiration you keep the 40 and the stock and then rinse and repeat. If the stock closes above 120 then the option buyer has the right to call the stock away and pays you 120 per share. You made 20 per share and keep the collected premium. You could lose money on the stock but you can't lose money on the option. The option premium acts as a small hedge as you can lose on the stock as long as it is less than the premium. The premium has the effect of lowering your cost basis.

This is a Buffet play, he sells a lot of calls against his positions. I have sold calls against my positions in my self directed IRA for decades and it juices the returns without increasing risk or using up capital.


Edit: Almost forgot. This is not trade advice or a solicitation. Seek advice from a qualified investment advisor. Past performance is not a guarantee of future gains. There is risk in trading levered products and only trade with risk capital. ETC. ETC. ETC.

Originally Posted by Finessed

I’ve never been a fan of option trading because it’s essentially like going to the casino. I appreciate your advice and agree “covered calls” would be the way to play options trading. Essentially you’re the house, and we both know the house wins (not always though).

This is the problem I have with your post. Selling a call option would result in the individual selling to write up the contract, correct?

You think a pilot like me is going to figure out how to write up a contract the likes of Warren Buffett’s math gurus write up their contracts??

a link below is the The Black-Scholes Formula used to write up option contracts

https://www.investopedia.com/article...eat_market.asp



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Originally Posted by Seneca Pilot

The contract is not written and the math is done for you. Get a demo account for Think or Swim. Watch some Tasty Trade videos on You Tube and play around with it. You don't have to risk a cent to see if it is for you. Covered calls have zero risk of loss on the option, you only collect premium which helps to offset some risk on the stock. I use covered calls in my retirement account precisely because I am not willing to take big risks with those funds. It is a very safe way to improve your returns.

Originally Posted by mispoken

As a personal preference, I don’t use accountants to guide my investing.

As for burning through cash; if that’s a concern at this phase in their growth, consider they expect to be FCF positive for all of 2020. Think about how quickly they came from their nearly fatal balance sheet to where they are now. They’re just getting started.

As for the reason for the cash burn; look at where that cash is going....the development of the S, X, 3, Y and Cybertruck? Battery development? Built out of
factories (both for autos and batteries)? Build out of supercharger network? Build out of mobile
support fleet? Self driving software? Software beyond self driving? Build out of salesforce?

They’re investing, it’s not as if Elon is just taking this cash and buying pot :-)

We are in a new era of companies; I’m not sure if I’ve said it yet (haha) but traditional metrics used by academia and talking heads are utterly useless.

Look at the gross margins of these SaaS companies. Who's had those types of margins
in the past? Nobody.

Look at how easy it is to scale now - compared to the past. Takes very little capital and very few boots on the ground. Was it like that in the past where everything was physical?

Look at subscriptions? That revenue and whatever you retain largely goes right to the bottom line. And it is repeatable.

With Tesla, what is the #1 car company, the #1 power company and tons of subscription possibilities (self driving taxi fleet, software updates, etc....) worth? Much more than looking at historical data ratios. It will take a lot to get there, but I can see that path.

What is Fiat-Chrysler spending their FCF on? Advertising? Auto manufactures as they exist are dead.

Keep the thoughts rolling! Lots of good things to reflect on in this thread. Ultimately we all want the same thing: $$$$$$$$ :-)

Originally Posted by Gunfighter

Doctors have White Coat Investor and lawyers have Big Law Investor. Can I get any volunteers for building out a similar site for pilots?

Originally Posted by Trip7

What has your return percentage been over the last 18 months?

Sent from my SM-N986U using Tapatalk

Originally Posted by mispoken

I thoroughly disagree with you here, saying that spreads are a waste of time and money. Assuming you understand them and know how to manage them they’re far more capital efficient than your typical covered call. If I can buy a cheap wing for say, .25 and preserve $2-$3k in buying power, this allows me to do a lot more with my buying power versus devoting all to a few trades. The key is trading small and trading often to tip the probabilities in your favor.

however, I prefer naked puts to maximize my premium and for management purposes. It’s much easier to keep rolling a naked put and collecting premium as you go versus a spread. The more spreads, the more difficult to manage.