Investment Experiment - Week of April 19 April 20, 2021
Update to my investment experiment rules and I used my cash balance and bought a call on 4/20 in a weed stock :)
I was waiting around for a few days for my deposit to clear. Webull doesn't let you buy (or SELL) options on margin. I had a negative cash balance but it's all cleared up.
I wanted to adjust the rules a bit! Rule #2 says I will withdraw the money if assigned a call. I'm adjusting the experiment to include all of the deposited funds. So, $6k not $44. But I can't voluntarily sell a stock. If I can't get that stock back through a short put, I'll move on to something else.
Also, I have a margin account, and Rule #5 will now be I can't use margin. I wasn't going to use margin, but when I went to buy a call today with my $44, it showed my option buying power in the $300 range. Yeah, I'm only using the cash balance.
Another soft rule is I will try not to do day trades. Aside from me not having the minimum required balance for pattern day trading, I tend not to try to make the quick buck in a day. However, it's not a hard rule, it might happen.
Where We Stand
It being 4/20 today, I bought a $1 call in SNDL, Sundial Growers, for $9 of my $44. It's generally a crappy stock, but it's got weekly options and it's cheap.
+1 SNDL 23 APR 21 $1 Call @ $0.09
Cash Balance: $35.22
I'll update this post if there are any new movements. I'm sure I won't let that SNDL call expire worthless, so I'll be back.
UPDATE: 4/20/2021 11AM
I bought another SNDL call to average down. Total investment $14.
I bought an ATOS put $1.50 for $20.
Cash Balance: $12.05
But SNDL is moving up! :)
UPDATE: 4/21/2021 5PM
SNDL is crap. I sold my calls for $2 a pop. UAVS jumped to as high as $5.91 today and made me sweat a little since I have it totally covered with my sold calls! It finished at $5.62. There's a lot of time for those calls though, a month as of today.
Of course, I bought my ATOS put yesterday and the stock price goes up almost 10%. But it was a very green day overall, my Robinhood account saw record gains.
CBIO gained $0.43 today and closed at $4.98. There's no option interest there but hopefully it sees movement upward and option interest so I can sell a call on it. Right now it's just a big red mark in a sea of big red marks :)
Cash Balance: $15.90 (+4 less option commission)
UPDATE: 4/22/2021 5PM
I hadn't mentioned but I own a call on ATOS from before this experiment started. I paid $115 for it. It's a $1 call for July 16 2021. Hopefully it's worth something within the next 3 months, so far it's just losing value.
Also, apparently I lend shares to short positions so I earn interest. This is totally in play! I'm going to need every penny. It's at $0.40 for the month so far, which has only started on 4/7 apparently.
CBIO still has no call interest. I await patiently. It could be another month before I'm able to do something, unless I'm able to find a cheap weekly and make some money on the options. Highly unlikely but what else am I going to do? Haha.
Cash Balance: $15.92 (It is different from yesterday, but Webull says I haven't actually been paid interest yet. Not sure if I just reported yesterday's balance incorrectly...)
UPDATE: 4/23/2021 5PM
Things are looking OK for ATOS, so I bought back a call that I sold. Original sale price was $10, and I bought it back for $5. Made $5 but lowered my cash balance.
I am still awaiting my interest payment for my lended shares, Webull! :P
Cash Balance: $10.84