general questions about penny stocks

[isalihi]

Do yourself a favor and resist the allure of penny stocks.

Put your hard earned money into real companies!

PS. I also do wish I had bought SIRI at .11cents lol Sounds like a no-brainer now in hindsight, but I remember reading at the time, it seemed SIRI's options were very limited and the company was likely not going to survive the recession.

[Snapdragon]

I do a mix of penny stocks and big reliable companies. The penny stocks I have are companies I actually believe in, but that doesn't mean I won't lose money. As far as a broker I use TD Ameritrade. They are ok, but one thing they really got going for them is not charging extra for penny stocks. Every other site I check out want to charge much more for penny stocks. Check the fine print. Ameritrade also has good customer service over the internet and by phone. I can send you a referral email if you want, just PM me.

[Winner]

It has been a long time since I visited this site.

If you consider trading penny stocks, then do your self a favorite learn OPTION since it is better and less risk with more reward if you apply by SELLING option and let the time decay to earn profit - use your money as margin (study well).

Here is a tip of a day

EFA (I fund) currently price at $58.37

Combination trade for June24
Sell $57 Put strike and Buy $57.5 Call for net credit $.10 (this is more than enough to cover the commission fees). Your breakeven is $56.90 (this is your cost or $1.47 less than the current price if you have to buy it on 06/24) and if it trading anything above that the money is your to keep. By trading this you already have $.87 in the money and if EFA continue to go up then your gain is unlimitted since you haven't spend any penny of your own.

I have option open for ETA same strike mentioned above with $.10 credit entered today.
I have TZA open (Sell $37.5 June24, Buy $39.5 July01 for even - breakeven at $24.13 or $39.05) and other open such AAPL, GDX, MLNX, etc.

[Winner]

Greedy cost me big time for today (my real TSP account on I fund). For regular account, I'm going to let it exercise EFA at $57 and sell $63 CALL Jan 2018 for $1.50, this will bring my average cost to $55.50. My only gain is on GDX 1000 shares covered CALL with basic cost at $24.20. This consider a gain as well that I'm going to let exercise GDX $27.50 PUT that I sold for $2.50, so my basic cost is $25. Lucky on APPL for calendar (separate trade) PUT $99 strike that I bought JUL08 for $2.92, but sold JUN24 for $3.11.