... for a .33/contract credit.
Comments: Rolling the short call aspect of my MJ 16 Covered Calls to January here. My cost basis is now 15.05/share minus .33 or 14.72/share, so I can conceivably contemplate rolling the short calls down to the 15 strike, since that would still be above my cost basis.
Marijuana stocks have been on the decline for a while, but things may soon start turning around.
Last month, the House Judiciary Committee advanced HR 3617 or (MORE) Act of 2021, a bill that repeals the long-standing federal prohibition of marijuana by removing it from the Controlled Substances Act — thereby ending the existing state/federal conflict in cannabis...
Weed stocks may have found a bottom according to this long term trend line that can be seen on the weekly chart for the MJ ETF.
A break below this line could be very bearish. When trading weed stocks, it's best to stick to ETFs in my opinion as many individual companies dilute their shares to raise money. Investing in an ETF for the most part will help you avoid...
... to April 14th 16 Covered Call for a .40 credit.
Comments: My cost basis in shares was 14.76 (See Post Below). Now it's 14.76 - .40 or 14.36. At the time of fill, the short call aspect of this setup was worth .97, so will look at the setup again when that approaches 50% max. I naturally don't generally like rolling out this far in time, but wanted to stay...
What's going on with weed stocks?? There are justifiable claims that some of these companies could still be overvalued. However, despite declining price, On-Balance Volume remains relatively high compared to what we saw during the last major downward swing between March 2019 and March 2020. This could signal accumulation. Additionally, the UO (ultimate oscillator...
I don't post about stocks or ETF's very often. I got into investing via crypto - and my intention wasn't necessarily to make money either. I had lost faith in the current model of our banking system, and became inspired by what I saw as an alternative. That alternative also ended up being a good financial decision. Ironically (I say this because most investors and...
... for a .39/contract credit.
Comments: The October 15th 18 short calls appeared to be no bid, but stuck an order out there anyway, which got filled.
Here, rolling my MJ 18's out to January, since there isn't a December and November isn't paying particularly well at the 18 strike. Current cost basis is now 17.13 (See Post Below) minus .39 or 16.74, so I can...
... for a .52/contract credit.
Comments: This is to cover the 16's I was assigned on last week. They had a cost basis of 15.57/share (See Post Below). By selling the 16's against for .52, my cost basis in the shares is now 15.57 - 15.52 = 15.05/share.
... for a .68 credit.
Comments: There isn't any November or December monthly yet, so extending duration out to January. My original cost basis was 15.44/share (See Post Below). With this roll, it's now 15.44 - .68 or 14.76, so I could conceivably roll this down to 15 with "my next move" and still be selling above my cost basis. However, we'll wait and see if...
There's a big weekly down trend that had ran its course in pot stocks, and the daily chart is reversing here, odds are we can squeeze 10-11 times the risk if we go long here with a stop around 16.18, it is worth a shot with something between 0.25% and 2% risk in the trade. Up to you, how much you risk on it. I'm being conservative and sticking to a 0.25% max risk...
... for a 15.44 debit.
Comments: A small engagement trade in the small account ... . Here, going monied (i.e., the short call is in-the-money versus out-of-the-money), looking for MJ to stay above 16 running through expiry. Post-fill, entered an order to take it off for 15.95 (.05 short of max). That is unlikely to fill until the waning days of the short call...
... for .38/contract.
Notes: Waited a little bit after taking assignment of shares (See Post Below) to sell calls against. Here, selling the strike at which my short puts were originally. Cost basis/break even is now 17.13/share, so my current profit potential is the short call strike (18.00) minus my cost basis (17.13) or .87 ($87)/one lot. Still have...
Comments: Although the shares haven't appeared in my account yet, they will be there by Monday, since MJ finished sub-18.00 at expiry.
These started out as August 17th 18 short puts (See Post Below), for which I received a .49/contract credit, so my cost basis in the shares will be the strike price (18.00) minus the credit received (.49) or 17.51/share. Next...
