I know this is not fortnite anybody finding that finding this video for some reason, you’re like what the hell he’s talking about fortnite again, if you look at my library, you’ll see why. But this is something i’ve been doing recently for the last four months. So that being said, i am not a financial expert. This is what i’m doing with my money. If you want to follow suit or do something similar again, do your own research make sure you know what you’re doing all right got that out the way. Also, if you guys want to trade, robin hood is the brokerage i use links will be in the description. If you use that link and deposit, i don’t think you have to deposit them. I think you just have to link your bank account you get a free share. I get a free share, that’s pretty awesome, but as you see in the title why i got a hundred shares of amc, entertainment or amc theater now there’s a few reasons for that. First of all, i should see the price kind of crazy right now, it’s fluctuating like crazy it’s, going up it’s going down and for me personally that’s a good thing. Why? Because i want volatility for what i’m doing with this stock as well. Now again, i don’t want to be so volatile it’s going to drop, but i also want to be tobacco that’s going to skyrocket, so it’s. It needs that balance and again you can’t control, what’s, going to happen in the stock market or even try to predict it.
Now i own previously 20 shares at 350 a share so roughly 70 and at that point in time i wasn’t investing anymore because there was the looming. Can they go bankrupt because they’re pretty much just draining money and they have a big amount of money and they’re reserved? Recently they got 400 pounds invested into the company, bringing a total of over 500 million dollars in u.s. On top of that, when they sold shares at a certain price where they you know put it in the market, they pretty much was able to raise 900 million dollars in the last month or so that’ll allow them to not have to file for bankruptcy and could Pretty much finance them for around up to, like the end of the summer, give or take now again that could actually finance them more longer than that, depending on vaccine distribution of vaccine and, of course, reopening theaters in new york city and la that’s. Their two biggest market, where they get most of their revenue, like for movies, also new movies coming out in the years to come, or in the you know, remaining years until summertime as well, because that’s what they need. They need the big block buses to come out for them to start making money. They don’t come out. They don’t make money it’s. That simple. Now. Is this a good investment if you’re buying out this price, probably not i’ll, wait for a dip to be below four dollars, that’s what i’ll say to buy now, if you’re doing long term? Yes, because i believe this stock again in my own professional opinion, would be seven dollars by summertime, because if vaccine start coming out more with different uh companies out there, when theaters open up in bigger markets and with some blockbusters come out, it’s going to hit seven Dollars now is this a twenty dollar stock? No, can it hit ten dollars? Probably but it’s, not gon na sustain twenty dollars.
So again you have to realize, where you’re going that’s, why i say under four dollars: goodbye above four dollars: you’re risking your own money again, if you’re holding long term could be good, you could buy the dips, but i will wait for it to go under four And i believe it will go under four dollars in the next coming weeks, but again it could also never go below four dollars. Who knows that being said? Currently, i own a hundred shares, as you can see in the screen. Average price is at four dollars and 37 cents and, as you see, it is dipping it’s also going up it. Dips again goes down. People are gon na sell off because they’re taking profit from the past day, that’s gon na happen and i’m. Okay with that uh, so right now, i’m up roughly almost 10, but that’s, not the main reason. I did this. The volatility that’s. Why? So yesterday? On top of buying an additional 80 shares pretty much bringing my total investment into this company to 437 dollars. I also sold two puts one for this week at 350 and the reason i did 350 because i don’t mind owning an additional hundred shares at 350 price. Like i said under four dollars – and this gave me a premium of ‘ – all right – and this is for next week – this week is a premium of 25 that is money. Somebody who bought a contract from me, stating they believe it’s gon na go under 350.
If it does, they could, of course make me buy a hundred shares at that price, regardless how much it dips and then they make the difference in profit for themselves that’s what’s to put pretty much in layman’s term, then i also did a call meaning, i believe, By next week, it’s not going to go to 650 and for that person to buy this call, they have to pay me a hundred and two dollars of money. I got it’s a dollar or two per share and, of course, it’s a hundred shares that making it a dial 102 pretty easy to understand. Right i mean, if you don’t, know it’s kind of you can do your own research on puts and calls, but so what that does is i have to have collateral for the puts 700 350 each 700, because two contracts and then my hundred shares is collateral for The call do, i believe, it’s gon na go up to 650. No, maybe the upper five dollars, maybe close to six but 650, is a long shot and if it does, i still keep that 102 that’s my money for the contract. Now, if it does get exercised because it goes to let’s, say seven bucks next week now i sell my 100 shares still for 650, but look at my average cost basis is under 650 i’ll make still capital gains between us 437 to 650, so that’s like 223 Dollars 223 of capital gains on top of that i’ll be keeping both puts because it went up to seven dollars, bidding it didn’t go below 350 and i still keep, of course, that 102.
So pretty much all that profit comes to me all capital gains. So i do have to pay taxes on regular income i’m. Okay with that – and this is a good way to make some passive income now it’s – very volatile, so it’s very hard to predict some people don’t like doing calls and puts on very volatile companies, because it could go up 40 50. It could go down 60 percent. You do not know so it’s very tricky, you got panic sellers, you got people taking profit and you got other people, they’re gon na panic and sell because they see a drop and that is just going to tumble down so realize that when you get into it, But let’s say it gets to five bucks next week, let’s say it stables at around five dollars again it’s going all over the place. It went down down up down down down up but let’s, say it’s five dollars, let’s, say 550. that’d be great because i’ll buy to close. My call probably pay about 20 and then i’ll sell a call for the next week and probably get around 80 to 120 bucks. For that call, i may not sell a put at that time and if i do, i might go further away from the money. Take less premium but also allow it if it crashes for me not to hold it for a s. You know for too expensive of a price, so you know i’m, okay, getting it for three dollars at that time.
Maybe but again, i’ll get less premium because it’s further from the current price, the closer it is, the more premium you get because there’s more chances of you losing money, pretty much um and the further. It is the less money you get because less chance of you getting a sign so that’s the difference so again, i’m, not saying for you guys to do this again. How about the 100 shares, because i get is only around five percent of my total investment in my portfolio – is this is let’s, say 25 of your portfolio more. I was saying kind of stay away from it. It’S too volatile. You got to be able to believe that this could go up. I believe it’s going to be seven dollars in around six months or more, because i believe that i’m, okay, holding this long term i’m, also selling, puts and calls i’m comfortable doing that. I have the collateral and i’m okay letting go the shares as well. If it happens and then i’ll just continue, selling puts until i get a sign and then get my 100 shares back. Maybe you know at a cheaper price again. I do not know at that time, but if it happens and that’s how i make it also passive income. Again, this alone i made a hundred and two dollars. I made ‘ and i made 25. that’s close to 200 bucks on these three with my total investment. If we go right down here so yesterday, i bought the 80 shares for 367.
12, pretty much being 459., so that was the average that was actually the share price. As you see, the share price right now is currently just a little above that not by a lot, but again. This is something that i feel would make me a decent amount of money into my portfolio that i’m going to reinvest into it. So again, you have to learn also about capital gain short term and long term. You know have an understanding what you’re doing before you do it just because you see somebody on youtube doing it don’t. Do it and think it’s going to work for you, because this could easily blow my face and i could lose you know easily 300 or more. So you know take that consideration again. I’M doing this for my money and that’s, why i’m buying 100 shares or why? I have 100 shares and i’m actually looking to buy more if it dips below four dollars in the next coming weeks. That’S, the only time i’m buying extra shares is below four dollars. Again, you could buy now buy 100 shares. You could buy 500 shares. That is up to you. I am not comfortable buying more shares when it’s at this price point below four dollars above four dollars, i’m good. So that is the video hope you guys got something out of this again. If you did hit that thumbs up. Let me know what movie you watch in the theaters in the last three years that you guys found to be the most enjoyable like i said.
If you guys want to find robin hood links will be down, the links will be down below you get a free stock. I get a free stock when you link your bank account and deposit 100 bucks and again start investing that’s how i got started.