Dennis McCain (@dennismccain)

Bullish

@Jsteck I’m starting to look at FSR as a target of opportunity for selling options. I really don’t have much in the way of a position but I’m looking at these shares as flat going forward. At least for the next 6-9 months while they produce their first cars. With weekly options being offered this could offer a nice way to build up a position using other people’s money. At no point will this become the focal point of my attention but it does present itself as a nice side trade. Maybe I’ll get the trade moving next week. All my best.

Freggel4/7/21, 07:13 PM

@dennismccain hey Dennis, first of all thanks for all your sharing. Second i'v been trying to get a hang of selling options but havnt figured out how to build a position with it. Iwould like to start with a stock as learning experience( i learn the most when doing not when reading) so for example with FSR, resistance at about 18,30 and support 14,40. How do you start? You buy 100 shares first and sell covered calls above resistance. Or do you first sell puts to try to get them putted to you ( for ex the apr16 '21 strike 15 at 0,5). ?

dennismccain4/7/21, 08:18 PM

@Freggel Any way will work but I prefer to enter by selling Cash Secured Puts and then exit selling Calls. If I start out selling Puts, then I use the money received to buy shares. And I’m in. If the Put option expires worthless then I get my original money back and I maintain ownership of the shares I bought and paid for with money received from the Put sale. It’s pretty straight forward.

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