Exciting Investment

CVM to the moon! (Hopefully)

When I started to get back into trading options, I was selling calls on my cheapo shares that have no volatility and monthly options, and their prices had fallen way below my average so I wasn't able to make more than like $10 per sold call. Soon though, I found weekly options on highly volatile stocks, and I wanted in on the game!  This lead me to NIO and PLUG, which are two really fun stocks to own. I have a few shares but have only done one option, which was sold a put on PLUG for $24 when it was $24.30. Risky, but I wouldn't have minded owning it for $24. I made $65 and it shot up to over $28 in two days.

So on Monday I was curious on how to maximize this strategy, and decided to search Google for the options with the highest implied volatility. It lead me to a stock, and I started researching it. What I found was crazy. There's a potential major catalyst coming up and it could be what they call a "10 Xer", meaning the price could go as high as 10 times what it is. When I looked it was $16.77. That was Monday night.

Immediately I opened up my margin on Robinhood (this is my Robinhood account where I'm not doing the investing experiment and can do this kind of stuff :)  and put in two orders for far out options. From what I read, there was some uncertainty about when the catalyst might be. And whether or not it will actually be any good, of course.

I didn't sleep that night. Even though I knew that just because I found it at that time wouldn't mean everyone else would find it at that same exact time and the next day it would blow up. But still.

The options total was $1300. One in the money in October, $15 strike price. The other was just out of the money, $17.50 for July. I got both immediately when the market opened. PHEW!! What a giant relief. I also had an order for $190 which netted me just over 10 shares. Later in the day I sold a call for July with a $60 strike price, which netted me $250, dropping my cost down to $1050.

The stock did a million volume that day. My options gained like $100 overall. Not bad! The next day it did another million. They gained $250-$300. Woah. Thursday they did upwards of 10 million in volume and the options value is nearly double my $1300 investment now. In one week my account went up $1800 overall. A lot of my other stuff went up as well. It dipped a little Friday and I was able to buy back the call I sold for $225, so I made $25 on that. Total options investment is $1275 now. That's not bad given I have until July to see what it does.

The stock is CVM. I plan on keeping all of my money in there. I was originally going to sell the July call if I was able to make up my cost of everything, and maybe gain a little profit as well. But now I'm just going to keep it in there. It could drop big, or it could blow up. If everything goes like what I'm reading, it could be worth $60K, which would be nice. That's just internet rumors, albeit some more educated internet rumors (on actual websites that speculate these things). But it's worth $1275 to see what happens.

Wish me luck! Also, buy CVM!!

blog comments powered by Disqus