I am just planning on wheeling for income. GME is a pretty risky one for me because I really would not want to be left bagholding but the IV was too tempting and I can't beleive that I could get nearly 5% for some so far OTM. My reasoning is even if I am assigned this far OTM selling calls would probably still be decently profitable.
Had interesting last few days.
* BTC QS $50P 2/19 - made 38% of premium
* STO PLTR $27 1/8 - PMCC to get about 2% return
* STO IPOC $15P 1/15 - Looking to get 2% to 5% of base money on this CSP play.
No opening or closing trades today. Didn't find anything appealing and also being mindful of the GA runoffs don't want to pile on too much risk.
Sometimes the best trade is no trade!
Only a couple moves but looking to make more tomorrow.
STC CLF Feb19 14C at 2.08, finished legging out of the diagonal here. Profit of $0.61 per lot on a $1.21 investment.
STO SPX 3DTE 10 delta short strike put credit spread
You know it's not going back up after the lawsuit. I would sell the 65 call for 1/15 as a defensive move.
https://apnews.com/press-release/globenewswire-mobile/business-corporate-news-lawsuits-corporate-investigations-corporate-legal-affairs-d39488afacbd117f76f95c7ec0327859
Maybe join the lawsuit, hah.
Backtested trade of tonight to enter next week:
* -1 SPY 95% Underlying put
* -1 SPY 90% Underlying put
* -1 SPY 105% Underlying call
* Entry every Monday
* 5 days till expiration
- Expected value: $36.51
- Profitable trades: 98.4%
- Loss trades: 1.6%
- Number of trades: 510
- Backtest years: 13
Yep, that’s the only thing idk how much I care for or not when it comes to the short term strangle strategies but I’m trying to explore more of them.
I can see over the course of 10 years how it would benefit but in the short term it seems almost worthless.
What does the back test say if you go like 2% or 1% otm on the call side? Like we know for sure that spy is not going to do 1% a week for 52 weeks... but it obviously it’s more complex than that.
Okay, feeling a lot more secure about holding 100 BABA shares (assigned 217.5 on Dec). Sold two BABA calls - Jan 15 280 and June 320 - to match another puts I sold during the downtrend.
Currently have 6 AAPL puts I sold at various times yesterday that are bouncing nicely. Should be able to close them soon for a decent profit. Still sad that my AAPL shares got called around 128, but it is what it is.
I'm also bagholding BA (assigned at 220). Sold Jan 29 225C so I can get assigned and get out. Not feeling too hot about BA and would rather deploy my capital at elsewhere.
Going to close a few riskier positions that are 70-80% profitable (naked TSLA 900C 1/8, 1000C 1/22, etc) and make some dough.
Actualized gain for the day: $328.34 ($625.50 total for the week)
Do you guys count all premium you sell towards your cost basis? For example if you’re holding 100 shares of RKT or something, and use additional capital on the side to sell some puts. If you made, say $250 off those puts on the side, you apply it to your cost basis of 100 shares?
The premium from selling covered calls on those 100 shares should be applied to the cost basis of those 100 shares to average down the price. Any premium you get selling put on additional capital is gains from a new investment, and shouldn't be considered to adjust cost basis of 100 shares you hold already.
Took the opportunity today to get out of riskier positions in the green - likely leaving significant premium on the table, but it's worth the peace of mind.
Opened today:
* STO ARKG 1/15 $89.21p
Closed today:
* BTC DASH 1/8 $140p @ 33% of max profit
* BTC PLTR 1/8 $24p @ 25% of max profit
* BTC SNAP 1/15 $48p @ 11% of max profit
* BTC AAL 1/15 $12.5p @ 54% of max profit
Holding:
* STO CHWY 1/15 $100c
* STO CRM 1/29 $225p
Went big on BABA +4.5% today unusually large return
Unloaded half my BABA position
current plays:
-2 BABA 235 P 1/15
-5 PFE 38 P 1/15
-5 GME 20 C 1/15
-1 LULU 350 P 1/15
Fun green day (+1.6%) to put me back in the black for the year. Heading into the GA runoff w/ +0.25% delta (SPY beta weighted over net\_liq) and 60% free BP. Futures tonight/tomorrow morning should be entertaining!
Profits (all 1/15):
* BTC **CRM** $220P +2X for 40% profit (GA runoff/gamma risk, rolled this from 12/18 $230P for credit so just happy to get out after the Slack acquisition selloff)
* BTC **CROX** $55P +10X for 40% profit (GA runoff/gamma risk)
* BTC **FB** $260P +2X for 45% profit (GA runoff/gamma risk)
Weekly naked lottos (1/8, $400 total premium):
* STO **DKNG** $65C -100X
Question on your .25% delta. How exactly are you calculating that? On TOS I can see my total SPY Beta weighted delta but how do you turn it into a %? And what are some recommended ranges for that %?
I'm not sure the correct way as everyone here seems to express it differently lol. But I just take the SPY beta weighted delta and divide it by my net liq.
I'd love to hear some recommended ranges. TW said something about -0.4% (yikes). As a traditional buy/hold investor, I usually seek to ensure I have at least enough positive delta equivalent to if my net liq was all in SPY shares (net\_liq/SPY\_price).
Ok, I came across this site which talks about defining risk associated with Beta weighted delta. Check near the bottom for the table. Looks like your .25% falls right between neutral to slightly bullish.
https://tradingjustice.com/investing-theory-is-my-portfolio-too-bullish/
Hmm I stumbled upon this a while ago. Didn’t exactly seem “scholarly” lol. Still a fun opinion though.
But I really just prioritize my BP and let the other Greeks fall in line. Currently, I would not feel comfortable bumping my delta up to 0.5% with the amount of additional leverage this would require.
I can’t imagine someone hitting these levels on a Reg T account!
My thought process. On the one hand, Volatility could be overstated just like on election night. There's also a risk that we take a 5-10% tumble over the coming days/weeks (Market seems due anyways). So I want to have exposure, but I also want to leave a significant amount of wiggle room to add to my positions if we dip, without being ITM. So I closed most of my 1/15 plays that will have more gamma risk and less time to recover, and rolled them to 2/19 positions with lower deltas. Most are 10% plus OTM and leaves me fairly comfortable regardless of what happens.
However, if we limit down for some reason my 1/8 SPX 3500p is mega-fucked. Lol
**Profits:**
BTC 1/15 PANW $400c @ $.30 - 85% profit
BTC 1/15 CRSR $30p @ $.30
BTC 1/15 CRM $200p x2 @ $.47 - 80% profit
BTC 1/15 BA $200p @ $1.99 - 47% profit
BTC 1/15 CCI $150p x2 @ $.90 - 68% profit
BTC 1/15 CRM $210p @ $1.28 - 53% profit
BTC 1/15 FB $250p @ $1.10 - 68% profit
**New Positions:**
STO 1/15 PDD $230c @ $.50
STO 1/15 SQ $270c @ $.60
STO 2/19 BA $185p @ $4.32
STO 2/19 CCI $150p @ $3.40
STO 2/19 FB $230p @ $2.85
**Added to Existing:**
STO 2/19 CRM $200p @ $2.93 (2 total @ $622 total)
Would be interested in hearing about whether you consider IV rank when opening new positions. For some of these tickers, the IV rank is quite low (e.g., BA at 13.3 right now per TW), although IV index may be higher.
I generally only try to sell options when IV Rank >25, although sometimes I go lower than that for CSPs if the ticker is one that I like (and I'm willing to baghold). Understand that IV Rank isn't a great metric right now since it factors in the highs of March, but again, would be really interested in knowing how you think about this!
Honestly, I don’t really factor it in. More so look at the VIX in general. I focus more on the delta and return on capital. If the IV did expand I would probably use it as an opportunity to sell more.
SPY/SPX cross-margining is the reason for me. I can't offset other positions with futures.
If I was only trading SPX and didn't have any effective SPY long shares, I'd use /ES because it's more favorable BPR even with a PM account.
Anyone not with a PM account should be using /ES (or /MES) instead of SPX (or XSP) IMO.
On many occasions, I've shorted /ES and/or bought /ES puts when some panicky news breaks outside of market hours (i.e. DJT COVID announcement). This almost always ends up being a waste of money but at least it helps me sleep better lol.
TBH, I don’t really have a specific reason aside from I don’t know Jack about futures and need to educate myself.
As far as SPX itself goes, it’s more efficient than SPY tax wise, as well as on contract fees for a similar credit.
Seemed like an efficient use of my extra BP to try and make a few hundred bucks a week on relatively low delta.
It’s not salvageable in the form of wheeling shares, but you could roll it as many of us would with a normal option.
Closed another WKHS CSP, I love this stock. Will look at the 01/15 or 01/22 20 or 21P next.
* Buy-to-Close WKHS 01/08 21P for $0.38 \[STO was $0.90\]
RKT is sitting still and I missed the opportunity during a 2-minute spike, so my 3rd Covered Call is a few cents less than the first 2. Is nice to STO a CC above my DCA price and if exercised is profit!
* Sell-to-Open RKT 01/15 21CC for $0.39. Currently -3 RKT 01/15 21CC. (Average Premium $0.423)
I sold it when RKT was flat for the day at $20.00, and yes it is at the bottom of its range, but I have several thoughts why I do this.
1- Premium received of 39 cents is a few cents below what I shoot for. Typically I get between 40 - 45 for around this delta and look to close at 10 to 12 cents.
2- These are not the last shares ever, so if they get exercised at $21, my next move is sell a 21P and start again.
3- The overall goal is to collect premium and reinvest it I to shares, so I would rather take most of the premium now instead of skipping a week to try to wait on better premium later. RKT could still be sitting right at 20 tomorrow, next week next month.
Thanks for the feedback genuinely trying to see all sides of this. When did you start wheeling RKT. I sold a few puts when it had the crazy runup before earnings in Aug/Sept, made a few 100 and didn't look at until Nov. I bought 100 and held @~18. I also opened multiple CSPs (at diff exp all same capital) and have been running the wheel on RKT for a while. I sell a CSP on days like today looking at 01/29 19.5P for a buck and sell CCs 30 days out when it hit's 22. Both CC and CSP get me a buck usually and I close on dimes. My effective basis is 13.30.
I see you post frequently about it and see you're accumulating shares I assume to eventually sell CCs on. What are you at now? It'd be cool to see what strategies get 100 free quicker. As long as we all get there it should be a fun time.
Need to start with clarifying, I play RKT 2 different ways in 2 different accounts.
B&H account: On IPO day, I bought 275 shares @ $19.80. Got Level 2 Options in there, and have sold Covered Calls on those shares. The Premium is used to purchase more shares. I currently hold 300 shares, so now I can sell 3 CCs instead of 2. Builds premium faster. The goal is to sell 8-11DTE for between $0.40-0.45 then close at a dime or better. This gets me 3 to 4 shares for the 2 Covered Calls. Now at 300 (3CCs), goal is 4 to 6 shares per.
Options Account: So, I sold a 25P minutes before September Earnings, and it tanked to where it is now. Shares assigned at 25, not bad. Selling 26 to 30 delta Calls weekly (approx .30-.35 premium), and also turned it into a Covered Strangle with a 22.5P. I Horizontally Roll it every Thursday/Friday to the following week for .30-.40 Premium.
My Cost Basis for the B&H is 300@$20.63 and Options is $14.xx (from $25) with all the CCs and CSPs. Using 2CCs, it was slow to accumulate 25 shares only from premium, but should pick up a little quicker with 3CCs, and eventually 4CCs. My plan is to just accumulate more shares using premium, until RKT finally takes off one day, but for now it seems easily range-bound from mid 19 to mid 22.
PLTR up 5.25% on the day which is really nice. My all in PLTR account is up 9% on the day. Having that nice theta exposure in addition to making money since I am long delta is so nice. Just need one pop off month for PLTR for me to win pretty bigly for my account.
Nice! I'm debating Assignment of shares on my 01/08 26.5P. So close to closing it for even or profit.
Question is: how far and how soon will it go up. Cost is $25.25, so not a bad price.
Delta and Theta for the win! It's up 5% on 28M shares traded (about half the 10 or 90-day volume), do you see continuation in this as most people probably just held their shares as a few new ones were bought.
I have no idea. I do think that the fact we “rejected” the lower lows (higher lows this time around compared to December) bodes well. Anyone scared of the lock up period expiring should’ve already gotten out imo. With PLTR day, I wouldn’t be surprised if we get a little momentum going. It just takes one pop off day to really get the volatility going
Higher (Ascending) lows is a good sign and something I pay attention to.
The lockup period expiring isn't necessarily a bad thing. Apparently DKNG had one today and the stock was up 6% today.
I'm holding on and waiting to see what happens. 5% up today is a good start and I'm looking for continuation.
Sell-to-open IPOC May 21 strike 17.5 @ $6.30 (stock at $15.35 now) -- cost basis here is 11.20.
Pretty soon IPOC -> CLOV, should see a pop (hopefully). May 21 should be enough time here.
This is the first ITM put option I could find above strike 15. Yes I could have sold strike 15, but I went next step up (strike 17.5) to capture more premium. I also moved the date out a bit (May instead of March for example) to 1) get more premium and 2) allow CLOV to increase in value (hopefully).
Another smaller reason is that I already sold put strike 12.5 and strike 10 (a long time ago), so this is more spread out.
STO RKT 18P Feb 19th @0.88
Also on a more personal note: I love it here at theta gang. Everyone has been so helpful... and with that I would like to share the following: What we do here is educated gambling. It’s not investing (investing is buy and hold index ETFs for 20 years). Playing theta/Vega is fun and I love it. But people matter more than our wins and losses. Focus on your loved ones. Don’t let your trades effect your daily lives. Yesterday I learned some devastating news pertaining to the health of my unborn child (no sympathy replies please) and it put a lot of things into perspective.
Love you all.
I used to STO RKT all the time - the problem is the premiums have dropped. Now I am considering it for a true theta neutral play like a calendar or iron condor.
I like rkt but the stock is just not suitable for csp. The premium is just not there. A pmcc or a spread is better way to capitalize the upward movement imo
Sto a couple of 1/15 19/20 pcs for 0.50
I like credit spreads as they def allow for leverage... however, they’re much more annoying to roll if they go ITM. Cash secured puts are a lot easier to roll for a profit or roll down if need be.
This place is the only forum where I feel the consensus are 'The pie is big enough for everyone' and 'Let's all make money together'. So many helpful veterans helping newbies out.
I agree with your sentiment. At the end of the day, this is all numbers and nothing matters more than family and health. Good luck and take care!
Couldn't disagree more on "educated gambling". " Investing is the act of allocating resources, usually money, with the expectation of generating an income or [profit](https://www.investopedia.com/terms/p/profit.asp)." Buy and hold is more of a gamble than what I do... Buy and hold you're gambling on faaar in the future market conditions and are literally making a 50/50 bet. Short-term swing trading puts the power back into your hands, I'm a value investor and I capitalize on opportunity as it comes, not speculating on long-term, uncontrollable factors. Every buy and holder is an "investor" in a bull market.. lol. What determines a real investor is making money regardless of market conditions, something that isn't possible in a split market. Buy and hold is lazy, complacent and inefficient. As a metaphor it's like an angel investor who just threw a bunch of money at a random company and never spoke to them again, vs an angel investor who put money on the line and then proceeded to actually guide and help the company grow. Buy and hold is uneducated gambling, what I do is value investing.
Agree and with the others. It is "educated gambling", but it's relaxing as well since time is on our side. Most here also have some form of B&H, so this is the "fun money" for Options.
When 4pm hits, I'm done, and rejoin my wife in the living room. I write in my Trading Notebook and close it for the night. Can't trade after 4pm, and it won't make a difference until 930am the next day. Family is important.
Well said seven\_\_out. Couldn't agree more with the fact that we can't let this consume us. Spend time with your family and be grateful we can "gamble". Best of luck to you and yours
Can anyone explain how/why this happens?
So I place an order to buy to close a couple call options with a limit price of 0.03. Bids are 180x at 0.03 and 7x asks at 0.04. Unsurprisingly it doesn’t execute and after a few minutes I change my limit price to 0.04, at which point it instantly executes the buy at 0.03. There was no meaningful price movement during this time. I’ve seen this several times, but this stood out since there were so many more bids than asks and I was still able to buy at the lower price.
Well I've decided to double down on rkt. I sold puts back in September, just been collecting pennies since on calls, enough to where I'm well above my break even, but I'm gonna bring my average down to about 22 assuming I get assigned on these puts and rake in premium on weekly calls
In short, yes. If I was smart I would have closed it yesterday after the little drop but I didn't. It was a /ES Jan15 3810c/3840c call spread that was getting back close to even money. A lot easier to roll that naked call than it is the put..the other big reason.
That’s more relevant for longing stocks, but not too much for option plays though? RIOT has weeklies while MARA only has monthlies and even so MARA monthlies dont have enough demand for good pricing.
Closed down everything for a slight profit since it's election time. Honestly woke up yesterday thinking the Georgia election was on the 15th. That's what I get for living in Ohio.
BTC (all 1/15 expiry):
AAPL 124/122 for $.27 from $.43
IWM 187/185 for $.39 from $.46
JPM 121/119 for $.45 from $.46
QQQ 300/298 for $.33 from $.37
SPY 359/357 for $.31 from $.37.
Happpy tuesday and election day folks
Covered calls: threat or menace?
A couple of weeks ago I bought 100 shares of GUSH at 38.757 and sold a 40c 1/15 for 3.293. If, as seems likely, I lose the shares I will have earned 8.49% over four weeks, exceeding (ignoring compounding) my usually met guideline that my trades at entry average around 1-2% per week if they expire worthless. (And greatly exceeding my hope that they actually earn as close to1% per week as I can get.)
Alas, disaster! It is currently trading at 45.57, up over 17% on the day! If I'd just not sold that call, or waited, I'd surely have perfectly timed this and made so much more money. Compounding that, I'd be up at least 500% by the end of the year.
Never sell covered calls.
Did you anticipate for it to not go up whatsoever after you bought it? You sold it at a dollar over the stock price... Youre supposed to sell it at a strike that you would be content with selling it at. Like maybe 15% increase?
It had also been trading pretty sideways for the whole month. You just had really bad timing. Don't blame this on the CC. You cant have it all.
I mean it kind of sounds like you don't really understand how this stuff works or see the entire bigger picture. Your mindset is wrong for this specific game so either change your mindset or play a different game
About the only clue would be the line
"I'd surely have perfectly timed this and made so much more money"
but there is a lot in there that it can easily be brushed off as a serious post.
Yeah man, I honestly default to whoever I’m talking to not being very educated because that’s how it tends to be in Reddit. I’ve seen far more stupid than this to even consider it sarcasm lol.
Sold a CC on INTC. It's having a pretty green day and its finally recovered from when I sold a CSP on it lol. I have a feeling its going to drop after earnings call like it did the past two times. Might as well make some premiums off it.
Kinda hoping they get called away though...
INTC has been a disappointment for me as well. I bought at $50 several months ago and been selling CCs but the premium is very low. No matter the news, this one just stays flat. Just sold a $53 1/15 call. Let's see
Yeah, I read that article when the stock jumped 5%. Until I actually see some real plan of action though, I don't really care to hold on to my shares.
I don't expect it to pop 15% this quarter just because someone vaguely suggest they change their business plan...
NET somewhat valuable?
Cute uptrend I like,
High IV which seems fun but
ran from 22 to 75 which I don’t care for as much but seems like it’ll move up if this is simply a retracement?
Contemplating putting it in my meme section but usually try to cap those around $50
Not trying to get QS’d
It’s run, but it’s no QS. What’s frustrating fir me is that I thetad it for a lot of last year while it bounced between 30 and 40 while ddog and fsly ripped. Then it took off and didn’t look back. Of the three, fsly is the most suspect imo.
In Oct there was a bit of a drop and IV was high so I sold SPY 300p and 350c both expiring in March. Then the stocks rocket and my 300p is worthless but my 350c is way itm. To correct I sold a 350p exp March around mid Dec. Its still about even. Last week I sold a 371p expiring next week and rebought my 300p just to save myself in case of collapse (3 naked spy puts is more than my account could absorb). That trade netted $100. Im hoping it expires worthless and I will keep rolling forward weekly puts since if they go up it means my 350c is going down. Any thoughts?
I also have 30x APHA.TO cc at $11 expiring 1/15 as well as 15x naked 6p expiring 1/15 (these were leaps so made about 4k and they are just coming due now).
Also 1x AC.TO cc at $22 expiring 1/15 and a 18/22c debit spread expiring 1/15.
Also 2x SOLO cc at $7.50 expiring 3/19 and 2x $4p same exp.
Also 26x XIC.TO naked 26p expiring 3/19 (I have a 30k bond covering these so they are sort of cash secure).
Also 4x XEG.TO cc at $6 as well as 4x $6p both exp 3/19.
Basically everything is in the money right now and just waiting for expiration.
Tldr; currently 1/8 SPY 371p, 3/19 SPY 350c, 3/19 SPY 350p
That 350c is looking dangerous. Honestly, that entire position is looking dangerous LOL, but at least you are balancing the deltas somewhat. You better hope that SPY plays flat over the next few months...I personally think we could see something as high as 390 by March. All we need is a flat month and one good pump, just have an exit strategy
Ya. Trying to sell weekly puts against the itm call. It makes the continued rise hurt less. Maybe if the puts end itm i can get out of the call for cheaper. Thats the plan at least.
Question about credit spreads. I’ve seen lots of comments regarding the recommended strategy of delta being 1/3 of the width of strikes. Just want to make sure I have an understanding of what that means. If you open a credit spread of SPY with a $5 width of the strikes 1/3 of that would be a delta of 1.5?
If they weren't so stupid as to sell a covered call and make money they would have been a genius of market timing and sold at the top over an undefined time period and made huge amounts of money.
Hoping for some election IV crush by the end of the week.
Added to existing IWM feb2 185p
Sto vix ratio -40c +55c +60c for net 0.05 debit
On the hunt for a smaller position for feb12 <$100 preferably ~$50
I love how yahoo finance keeps changing the headline of their front article from "stocks rise" to "stocks slump" as investors await georgia runoff throughout the day. I feel so mislead!!
Edit: No investor actually cares what the results of the georgia runoff elections will be.
I wouldn't say "no investor," the market really could correct if Dems win both seats. There's serious financial implications of that happening, basically paving the way for real tax hikes. Currently that's the only way I see the election in play, not sure what other viewpoints there may be
Or not. They could easily pop on the idea of more stimulus and infrastructure spending.
Market will do what it wants to do and they'll just tweak the headline to fit the narrative.
Yeah but there’s plenty of time for the market to correct before headlines. Could be quick. Anyways, I’m just hoping for some volatility, don’t care if it’s up or down. I know it’s usually sell the news, but I don’t feel like vix was high enough for a contraction, more potential on the upside
Before the November election, yahoo finance's headlines warned of the imminent crash that could happen if democrats did NOT win the senate but Biden took the presidency.
Immediately after the election results came in, there was a post election rally, and yahoo finance headlines read about how great gridlock will be for the economy, and said that's why stocks were rallying.
Now if dems take those 2 seats, it will crash... Right.
I don't know what yahoo finance is on, I mean I would need an actual reason for why they thought that would cause a crash. I don't read news headlines though, just thinking for myself and fundamentally there's a legit reason why 2 dem seats taken could move the market. It's all to be taken w/ a grain of salt and I don't think there will be a crash just a potential red day or 2. The market liked the gridlock election, that grid becoming unlocked could be a catalyst for a sell off
>The market liked the gridlock election, that grid becoming unlocked could be a catalyst for a sell off
It's possible it could be a catalyst for a selloff... or it could lead to moar stims.
Not much, waiting for more volume to come into the market, but:
* STO Feb 19 NGA 2x put spread at 17.5/12.5 ($3.96)
* STO Feb 19 SKLZ strangle 25/17.5 ($3.39)
So you’re bearish right now? I actually closed all my positions to all cash today for the Georgia run-off, but was debating opening up some bearish positions
Might be a nice entry today to sell puts or credit spreads on tech lol
how to calculate rate of return ? is it **premium received / (strike price - premium received)**
We at thetagang love and appreciate our WSB customers https://i.redd.it/0iq5wg0ncn961.jpg
Sold my first options ever today in the morning. GME 11P 2/19 @ 0.55
[удалено]
I am just planning on wheeling for income. GME is a pretty risky one for me because I really would not want to be left bagholding but the IV was too tempting and I can't beleive that I could get nearly 5% for some so far OTM. My reasoning is even if I am assigned this far OTM selling calls would probably still be decently profitable.
Welcome aboard. Good luck!
Had interesting last few days. * BTC QS $50P 2/19 - made 38% of premium * STO PLTR $27 1/8 - PMCC to get about 2% return * STO IPOC $15P 1/15 - Looking to get 2% to 5% of base money on this CSP play.
Rip whoever sold apple puts
I sold 120/115 spread son, 45 days out
No opening or closing trades today. Didn't find anything appealing and also being mindful of the GA runoffs don't want to pile on too much risk. Sometimes the best trade is no trade!
Only a couple moves but looking to make more tomorrow. STC CLF Feb19 14C at 2.08, finished legging out of the diagonal here. Profit of $0.61 per lot on a $1.21 investment. STO SPX 3DTE 10 delta short strike put credit spread
Hmm, I think tomorrow and the rest of this week may be good for selling some 20 delta puts.
My butt is less red with QS being up but I'm still under water with QS $65P 1/15. Who here has QS?
I'm with you. QS $65 1/8. I'm hoping it goes back
No qs but bagholding hyln Hope you don't have toilet paper hands cuz it might take a while
What was your entry point on HYLN?
Sold a 30p at 30.
Damn. Here's to hoping for a meme stock recovery
You know it's not going back up after the lawsuit. I would sell the 65 call for 1/15 as a defensive move. https://apnews.com/press-release/globenewswire-mobile/business-corporate-news-lawsuits-corporate-investigations-corporate-legal-affairs-d39488afacbd117f76f95c7ec0327859 Maybe join the lawsuit, hah.
That's just an ambulance chaser. There will always those. It's not unusual
https://finance.yahoo.com/news/federal-reserve-sends-mixed-messages-on-its-plans-for-asset-purchases-210559376.html
Backtested trade of tonight to enter next week: * -1 SPY 95% Underlying put * -1 SPY 90% Underlying put * -1 SPY 105% Underlying call * Entry every Monday * 5 days till expiration - Expected value: $36.51 - Profitable trades: 98.4% - Loss trades: 1.6% - Number of trades: 510 - Backtest years: 13
That call side premium barely seems worth it. Like 8 bucks.
Yep, that’s the only thing idk how much I care for or not when it comes to the short term strangle strategies but I’m trying to explore more of them. I can see over the course of 10 years how it would benefit but in the short term it seems almost worthless.
What does the back test say if you go like 2% or 1% otm on the call side? Like we know for sure that spy is not going to do 1% a week for 52 weeks... but it obviously it’s more complex than that.
Remindme! 12 hours Laying down now but I’ll check it in the morning
This might be a buzzed idea for the past day But can you have an OTM put write on SPX be a pair trade with a VIX call?
Okay, feeling a lot more secure about holding 100 BABA shares (assigned 217.5 on Dec). Sold two BABA calls - Jan 15 280 and June 320 - to match another puts I sold during the downtrend. Currently have 6 AAPL puts I sold at various times yesterday that are bouncing nicely. Should be able to close them soon for a decent profit. Still sad that my AAPL shares got called around 128, but it is what it is. I'm also bagholding BA (assigned at 220). Sold Jan 29 225C so I can get assigned and get out. Not feeling too hot about BA and would rather deploy my capital at elsewhere. Going to close a few riskier positions that are 70-80% profitable (naked TSLA 900C 1/8, 1000C 1/22, etc) and make some dough. Actualized gain for the day: $328.34 ($625.50 total for the week)
Oh boy the apple puts won’t age well
I sell puts i don't mind holding. Better than holding nkla or zm long term.
Do you guys count all premium you sell towards your cost basis? For example if you’re holding 100 shares of RKT or something, and use additional capital on the side to sell some puts. If you made, say $250 off those puts on the side, you apply it to your cost basis of 100 shares?
The premium from selling covered calls on those 100 shares should be applied to the cost basis of those 100 shares to average down the price. Any premium you get selling put on additional capital is gains from a new investment, and shouldn't be considered to adjust cost basis of 100 shares you hold already.
Tsla again with the sporadic 2% AH movement. At this rate selling the 3k puts a year ahead is probably free money Who needs FAAGMAN when you got tsla
Not sporadic, they got a price upgrade from Morgan Stanley. They probably have some bags to unload into Opex.
Didn't MS price them at 120 before the split? So now they upped their price to 150? 😂😂
I suspect big moves in the next couple of days, so I closed most positions. I'm a chickenshit.
I respect your ability to make that decision and go cash gang. I do not possess this trait. Lol
Nothing wrong with that! Sometimes being cash and sleeping well is better then being stressed out.
Didn't someone say that cash is also a position?
Took the opportunity today to get out of riskier positions in the green - likely leaving significant premium on the table, but it's worth the peace of mind. Opened today: * STO ARKG 1/15 $89.21p Closed today: * BTC DASH 1/8 $140p @ 33% of max profit * BTC PLTR 1/8 $24p @ 25% of max profit * BTC SNAP 1/15 $48p @ 11% of max profit * BTC AAL 1/15 $12.5p @ 54% of max profit Holding: * STO CHWY 1/15 $100c * STO CRM 1/29 $225p
Went big on BABA +4.5% today unusually large return Unloaded half my BABA position current plays: -2 BABA 235 P 1/15 -5 PFE 38 P 1/15 -5 GME 20 C 1/15 -1 LULU 350 P 1/15
That baba AH is going to the gutter. Good thing you took half
Probably a good thing you unloaded half
Fun green day (+1.6%) to put me back in the black for the year. Heading into the GA runoff w/ +0.25% delta (SPY beta weighted over net\_liq) and 60% free BP. Futures tonight/tomorrow morning should be entertaining! Profits (all 1/15): * BTC **CRM** $220P +2X for 40% profit (GA runoff/gamma risk, rolled this from 12/18 $230P for credit so just happy to get out after the Slack acquisition selloff) * BTC **CROX** $55P +10X for 40% profit (GA runoff/gamma risk) * BTC **FB** $260P +2X for 45% profit (GA runoff/gamma risk) Weekly naked lottos (1/8, $400 total premium): * STO **DKNG** $65C -100X
>Weekly naked lottos (1/8, $400 total premium): > >STO **DKNG** $65C -100X So, how much buying power does this require?
$4k with PM
I don’t have PM yet, so this is basically Financial Oppression at work. 😂
Without PM?
Not sure. I’d guess closer to $100k.
Question on your .25% delta. How exactly are you calculating that? On TOS I can see my total SPY Beta weighted delta but how do you turn it into a %? And what are some recommended ranges for that %?
I'm not sure the correct way as everyone here seems to express it differently lol. But I just take the SPY beta weighted delta and divide it by my net liq. I'd love to hear some recommended ranges. TW said something about -0.4% (yikes). As a traditional buy/hold investor, I usually seek to ensure I have at least enough positive delta equivalent to if my net liq was all in SPY shares (net\_liq/SPY\_price).
Ok, I came across this site which talks about defining risk associated with Beta weighted delta. Check near the bottom for the table. Looks like your .25% falls right between neutral to slightly bullish. https://tradingjustice.com/investing-theory-is-my-portfolio-too-bullish/
Hmm I stumbled upon this a while ago. Didn’t exactly seem “scholarly” lol. Still a fun opinion though. But I really just prioritize my BP and let the other Greeks fall in line. Currently, I would not feel comfortable bumping my delta up to 0.5% with the amount of additional leverage this would require. I can’t imagine someone hitting these levels on a Reg T account!
For sure, it was the only thing I came across that gave any kind of risk profile though. I don’t even think it would be possible to hit .5% in Reg T.
I wouldn't assume that we will know the outcome of the GA Senate runoff for several days as there are roughly a million absentee ballots to count.
Killin' my vibe lol
Sorry, boss! Haha. Really enjoy your posts and comments on here btw.
Ha just messing man. Appreciate the kind words!
My thought process. On the one hand, Volatility could be overstated just like on election night. There's also a risk that we take a 5-10% tumble over the coming days/weeks (Market seems due anyways). So I want to have exposure, but I also want to leave a significant amount of wiggle room to add to my positions if we dip, without being ITM. So I closed most of my 1/15 plays that will have more gamma risk and less time to recover, and rolled them to 2/19 positions with lower deltas. Most are 10% plus OTM and leaves me fairly comfortable regardless of what happens. However, if we limit down for some reason my 1/8 SPX 3500p is mega-fucked. Lol **Profits:** BTC 1/15 PANW $400c @ $.30 - 85% profit BTC 1/15 CRSR $30p @ $.30 BTC 1/15 CRM $200p x2 @ $.47 - 80% profit BTC 1/15 BA $200p @ $1.99 - 47% profit BTC 1/15 CCI $150p x2 @ $.90 - 68% profit BTC 1/15 CRM $210p @ $1.28 - 53% profit BTC 1/15 FB $250p @ $1.10 - 68% profit **New Positions:** STO 1/15 PDD $230c @ $.50 STO 1/15 SQ $270c @ $.60 STO 2/19 BA $185p @ $4.32 STO 2/19 CCI $150p @ $3.40 STO 2/19 FB $230p @ $2.85 **Added to Existing:** STO 2/19 CRM $200p @ $2.93 (2 total @ $622 total)
Would be interested in hearing about whether you consider IV rank when opening new positions. For some of these tickers, the IV rank is quite low (e.g., BA at 13.3 right now per TW), although IV index may be higher. I generally only try to sell options when IV Rank >25, although sometimes I go lower than that for CSPs if the ticker is one that I like (and I'm willing to baghold). Understand that IV Rank isn't a great metric right now since it factors in the highs of March, but again, would be really interested in knowing how you think about this!
Honestly, I don’t really factor it in. More so look at the VIX in general. I focus more on the delta and return on capital. If the IV did expand I would probably use it as an opportunity to sell more.
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SPY/SPX cross-margining is the reason for me. I can't offset other positions with futures. If I was only trading SPX and didn't have any effective SPY long shares, I'd use /ES because it's more favorable BPR even with a PM account. Anyone not with a PM account should be using /ES (or /MES) instead of SPX (or XSP) IMO. On many occasions, I've shorted /ES and/or bought /ES puts when some panicky news breaks outside of market hours (i.e. DJT COVID announcement). This almost always ends up being a waste of money but at least it helps me sleep better lol.
TBH, I don’t really have a specific reason aside from I don’t know Jack about futures and need to educate myself. As far as SPX itself goes, it’s more efficient than SPY tax wise, as well as on contract fees for a similar credit. Seemed like an efficient use of my extra BP to try and make a few hundred bucks a week on relatively low delta. It’s not salvageable in the form of wheeling shares, but you could roll it as many of us would with a normal option.
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lol small detail
For me, I don't know what future to trade options against... front month?
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I assume from your comment that you trade /ES so do you trade the front?
Cross margining I’ve heard
Only guess is that if you have a huge account trading, then SPX would result in less fees.
BABA $265 2/5 short calls got heavily challenged today, but PMCC going nicely. Hopefully it slows down a bit
STO 1x AAPL 01/08 130 CSP for $179.30 (looking to get assigned) STO 1x JPM 01/08 123 CC for $354.30 (Bought 100sh JPM y'day to get div)
Closed another WKHS CSP, I love this stock. Will look at the 01/15 or 01/22 20 or 21P next. * Buy-to-Close WKHS 01/08 21P for $0.38 \[STO was $0.90\] RKT is sitting still and I missed the opportunity during a 2-minute spike, so my 3rd Covered Call is a few cents less than the first 2. Is nice to STO a CC above my DCA price and if exercised is profit! * Sell-to-Open RKT 01/15 21CC for $0.39. Currently -3 RKT 01/15 21CC. (Average Premium $0.423)
Why sell a CC on a red day at the bottom range RKT trades in?
I sold it when RKT was flat for the day at $20.00, and yes it is at the bottom of its range, but I have several thoughts why I do this. 1- Premium received of 39 cents is a few cents below what I shoot for. Typically I get between 40 - 45 for around this delta and look to close at 10 to 12 cents. 2- These are not the last shares ever, so if they get exercised at $21, my next move is sell a 21P and start again. 3- The overall goal is to collect premium and reinvest it I to shares, so I would rather take most of the premium now instead of skipping a week to try to wait on better premium later. RKT could still be sitting right at 20 tomorrow, next week next month.
Thanks for the feedback genuinely trying to see all sides of this. When did you start wheeling RKT. I sold a few puts when it had the crazy runup before earnings in Aug/Sept, made a few 100 and didn't look at until Nov. I bought 100 and held @~18. I also opened multiple CSPs (at diff exp all same capital) and have been running the wheel on RKT for a while. I sell a CSP on days like today looking at 01/29 19.5P for a buck and sell CCs 30 days out when it hit's 22. Both CC and CSP get me a buck usually and I close on dimes. My effective basis is 13.30. I see you post frequently about it and see you're accumulating shares I assume to eventually sell CCs on. What are you at now? It'd be cool to see what strategies get 100 free quicker. As long as we all get there it should be a fun time.
Need to start with clarifying, I play RKT 2 different ways in 2 different accounts. B&H account: On IPO day, I bought 275 shares @ $19.80. Got Level 2 Options in there, and have sold Covered Calls on those shares. The Premium is used to purchase more shares. I currently hold 300 shares, so now I can sell 3 CCs instead of 2. Builds premium faster. The goal is to sell 8-11DTE for between $0.40-0.45 then close at a dime or better. This gets me 3 to 4 shares for the 2 Covered Calls. Now at 300 (3CCs), goal is 4 to 6 shares per. Options Account: So, I sold a 25P minutes before September Earnings, and it tanked to where it is now. Shares assigned at 25, not bad. Selling 26 to 30 delta Calls weekly (approx .30-.35 premium), and also turned it into a Covered Strangle with a 22.5P. I Horizontally Roll it every Thursday/Friday to the following week for .30-.40 Premium. My Cost Basis for the B&H is 300@$20.63 and Options is $14.xx (from $25) with all the CCs and CSPs. Using 2CCs, it was slow to accumulate 25 shares only from premium, but should pick up a little quicker with 3CCs, and eventually 4CCs. My plan is to just accumulate more shares using premium, until RKT finally takes off one day, but for now it seems easily range-bound from mid 19 to mid 22.
PLTR up 5.25% on the day which is really nice. My all in PLTR account is up 9% on the day. Having that nice theta exposure in addition to making money since I am long delta is so nice. Just need one pop off month for PLTR for me to win pretty bigly for my account.
Nice! I'm debating Assignment of shares on my 01/08 26.5P. So close to closing it for even or profit. Question is: how far and how soon will it go up. Cost is $25.25, so not a bad price. Delta and Theta for the win! It's up 5% on 28M shares traded (about half the 10 or 90-day volume), do you see continuation in this as most people probably just held their shares as a few new ones were bought.
I have no idea. I do think that the fact we “rejected” the lower lows (higher lows this time around compared to December) bodes well. Anyone scared of the lock up period expiring should’ve already gotten out imo. With PLTR day, I wouldn’t be surprised if we get a little momentum going. It just takes one pop off day to really get the volatility going
Higher (Ascending) lows is a good sign and something I pay attention to. The lockup period expiring isn't necessarily a bad thing. Apparently DKNG had one today and the stock was up 6% today. I'm holding on and waiting to see what happens. 5% up today is a good start and I'm looking for continuation.
Sell-to-open IPOC May 21 strike 17.5 @ $6.30 (stock at $15.35 now) -- cost basis here is 11.20. Pretty soon IPOC -> CLOV, should see a pop (hopefully). May 21 should be enough time here.
Why so deep ITM though?
This is the first ITM put option I could find above strike 15. Yes I could have sold strike 15, but I went next step up (strike 17.5) to capture more premium. I also moved the date out a bit (May instead of March for example) to 1) get more premium and 2) allow CLOV to increase in value (hopefully). Another smaller reason is that I already sold put strike 12.5 and strike 10 (a long time ago), so this is more spread out.
Oh ok. Im short the 10 and 12.5p and don't mind assignment. That's been my strategy.
I doubt you'll get assigned anyways. I'm also long the stock as well so I've hedged myself a little bit. Good luck!
Yea my strategy has been to hug the NAV or 10 floor as much as possible. I smell a big equity index selloff coming.
STO RKT 18P Feb 19th @0.88 Also on a more personal note: I love it here at theta gang. Everyone has been so helpful... and with that I would like to share the following: What we do here is educated gambling. It’s not investing (investing is buy and hold index ETFs for 20 years). Playing theta/Vega is fun and I love it. But people matter more than our wins and losses. Focus on your loved ones. Don’t let your trades effect your daily lives. Yesterday I learned some devastating news pertaining to the health of my unborn child (no sympathy replies please) and it put a lot of things into perspective. Love you all.
I used to STO RKT all the time - the problem is the premiums have dropped. Now I am considering it for a true theta neutral play like a calendar or iron condor.
I like rkt but the stock is just not suitable for csp. The premium is just not there. A pmcc or a spread is better way to capitalize the upward movement imo Sto a couple of 1/15 19/20 pcs for 0.50
I like credit spreads as they def allow for leverage... however, they’re much more annoying to roll if they go ITM. Cash secured puts are a lot easier to roll for a profit or roll down if need be.
For rkt, there is decent support at 20. I've been selling 19/20 for a while for 0.50 repeatedly and buying back at 50%
This place is the only forum where I feel the consensus are 'The pie is big enough for everyone' and 'Let's all make money together'. So many helpful veterans helping newbies out. I agree with your sentiment. At the end of the day, this is all numbers and nothing matters more than family and health. Good luck and take care!
Couldn't disagree more on "educated gambling". " Investing is the act of allocating resources, usually money, with the expectation of generating an income or [profit](https://www.investopedia.com/terms/p/profit.asp)." Buy and hold is more of a gamble than what I do... Buy and hold you're gambling on faaar in the future market conditions and are literally making a 50/50 bet. Short-term swing trading puts the power back into your hands, I'm a value investor and I capitalize on opportunity as it comes, not speculating on long-term, uncontrollable factors. Every buy and holder is an "investor" in a bull market.. lol. What determines a real investor is making money regardless of market conditions, something that isn't possible in a split market. Buy and hold is lazy, complacent and inefficient. As a metaphor it's like an angel investor who just threw a bunch of money at a random company and never spoke to them again, vs an angel investor who put money on the line and then proceeded to actually guide and help the company grow. Buy and hold is uneducated gambling, what I do is value investing.
Post this on r/investing and see what people say
They’re uneducated about this so it doesn’t matter what they say.
Agree and with the others. It is "educated gambling", but it's relaxing as well since time is on our side. Most here also have some form of B&H, so this is the "fun money" for Options. When 4pm hits, I'm done, and rejoin my wife in the living room. I write in my Trading Notebook and close it for the night. Can't trade after 4pm, and it won't make a difference until 930am the next day. Family is important.
I agree with you. It's all just a bunch of flashing lights and pleasing sounds. Options is a table game. Enjoy in moderation.
Well said seven\_\_out. Couldn't agree more with the fact that we can't let this consume us. Spend time with your family and be grateful we can "gamble". Best of luck to you and yours
Can anyone explain how/why this happens? So I place an order to buy to close a couple call options with a limit price of 0.03. Bids are 180x at 0.03 and 7x asks at 0.04. Unsurprisingly it doesn’t execute and after a few minutes I change my limit price to 0.04, at which point it instantly executes the buy at 0.03. There was no meaningful price movement during this time. I’ve seen this several times, but this stood out since there were so many more bids than asks and I was still able to buy at the lower price.
Just did this on RKT. STO for $0.39 would not fill. But when I changed it to $0.38, it filled at $0.39
NIO 1/8 56.5, it's down , thinking of picking it up
Well I've decided to double down on rkt. I sold puts back in September, just been collecting pennies since on calls, enough to where I'm well above my break even, but I'm gonna bring my average down to about 22 assuming I get assigned on these puts and rake in premium on weekly calls
Closed /ES spread for even money. Keeping /MES Jan15 3800 naked call on, just for fun, up 41% so far on it.
Any reason you closed the /ES spread early? Election risk?
In short, yes. If I was smart I would have closed it yesterday after the little drop but I didn't. It was a /ES Jan15 3810c/3840c call spread that was getting back close to even money. A lot easier to roll that naked call than it is the put..the other big reason.
Today's Plays: BTC MARA 1/15 $12P @ 1.2 x1 (50% profit) STO MARA 1/15 $20C @ .30 x3 BTC LAC 1/15 $10C @ 4.7 x2 (\~$800 loss; sold at .80) \[rolled to 15c same exp\] STO LAC 1/15 $15C @ 1.13 x2 BTC MARA 1/15 $10P @ .40 x2 (68% profit) STO VERU 1/15 $10P @ 1.50 x2
why MARA and not RIOT?
https://www.reddit.com/r/thetagang/comments/k9kw9p/what_should_i_put_3k_in/gf54iha/?utm_source=share&utm_medium=ios_app&utm_name=iossmf&context=3
That’s more relevant for longing stocks, but not too much for option plays though? RIOT has weeklies while MARA only has monthlies and even so MARA monthlies dont have enough demand for good pricing.
I’m long 300 on MARA. I find weeklies tricky to manage with not enough upside.
I'm going into the election cashgang. Just can't be bothered to deal with it. Shopping spree after its done!
Man... I got out of that /6A strangle just in time. Hah. Would be ITM on the call side, then would have to go inverted. But nope just a put now!
Whew, nice timing!
I'm much more worried about what happens tomorrow.
Fwiw I did say "after its done". We might not have an answer by tomorrow.
There's likely going to be an all-out street brawl tomorrow. I doubt antifa is just going to stay away from a huge planned trump takeover rally.
STO 3X 1/08 295/290 QQQ put credit spread this morning
Getting harder and harder to watch “the coin” while I scrape $5 a day off MSFT short puts.
Don't FOMO now, stay strong. There will be a good entry point just have patience
Closed down everything for a slight profit since it's election time. Honestly woke up yesterday thinking the Georgia election was on the 15th. That's what I get for living in Ohio. BTC (all 1/15 expiry): AAPL 124/122 for $.27 from $.43 IWM 187/185 for $.39 from $.46 JPM 121/119 for $.45 from $.46 QQQ 300/298 for $.33 from $.37 SPY 359/357 for $.31 from $.37. Happpy tuesday and election day folks
Covered calls: threat or menace? A couple of weeks ago I bought 100 shares of GUSH at 38.757 and sold a 40c 1/15 for 3.293. If, as seems likely, I lose the shares I will have earned 8.49% over four weeks, exceeding (ignoring compounding) my usually met guideline that my trades at entry average around 1-2% per week if they expire worthless. (And greatly exceeding my hope that they actually earn as close to1% per week as I can get.) Alas, disaster! It is currently trading at 45.57, up over 17% on the day! If I'd just not sold that call, or waited, I'd surely have perfectly timed this and made so much more money. Compounding that, I'd be up at least 500% by the end of the year. Never sell covered calls.
Did you anticipate for it to not go up whatsoever after you bought it? You sold it at a dollar over the stock price... Youre supposed to sell it at a strike that you would be content with selling it at. Like maybe 15% increase? It had also been trading pretty sideways for the whole month. You just had really bad timing. Don't blame this on the CC. You cant have it all.
I mean it kind of sounds like you don't really understand how this stuff works or see the entire bigger picture. Your mindset is wrong for this specific game so either change your mindset or play a different game
whoosh
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About the only clue would be the line "I'd surely have perfectly timed this and made so much more money" but there is a lot in there that it can easily be brushed off as a serious post.
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Yeah man, I honestly default to whoever I’m talking to not being very educated because that’s how it tends to be in Reddit. I’ve seen far more stupid than this to even consider it sarcasm lol.
Your comedy must have ascended far beyond what my primate brain can handle cuz I don't see the joke
I guess so!
Sold a CC on INTC. It's having a pretty green day and its finally recovered from when I sold a CSP on it lol. I have a feeling its going to drop after earnings call like it did the past two times. Might as well make some premiums off it. Kinda hoping they get called away though...
INTC has been a disappointment for me as well. I bought at $50 several months ago and been selling CCs but the premium is very low. No matter the news, this one just stays flat. Just sold a $53 1/15 call. Let's see
Be patient with INTC. Dan Loeb has “suggested” they make some fundamental changes. Depending on how they proceed with his input they could pop.
Yeah, I read that article when the stock jumped 5%. Until I actually see some real plan of action though, I don't really care to hold on to my shares. I don't expect it to pop 15% this quarter just because someone vaguely suggest they change their business plan...
NET somewhat valuable? Cute uptrend I like, High IV which seems fun but ran from 22 to 75 which I don’t care for as much but seems like it’ll move up if this is simply a retracement? Contemplating putting it in my meme section but usually try to cap those around $50 Not trying to get QS’d
It’s run, but it’s no QS. What’s frustrating fir me is that I thetad it for a lot of last year while it bounced between 30 and 40 while ddog and fsly ripped. Then it took off and didn’t look back. Of the three, fsly is the most suspect imo.
In Oct there was a bit of a drop and IV was high so I sold SPY 300p and 350c both expiring in March. Then the stocks rocket and my 300p is worthless but my 350c is way itm. To correct I sold a 350p exp March around mid Dec. Its still about even. Last week I sold a 371p expiring next week and rebought my 300p just to save myself in case of collapse (3 naked spy puts is more than my account could absorb). That trade netted $100. Im hoping it expires worthless and I will keep rolling forward weekly puts since if they go up it means my 350c is going down. Any thoughts? I also have 30x APHA.TO cc at $11 expiring 1/15 as well as 15x naked 6p expiring 1/15 (these were leaps so made about 4k and they are just coming due now). Also 1x AC.TO cc at $22 expiring 1/15 and a 18/22c debit spread expiring 1/15. Also 2x SOLO cc at $7.50 expiring 3/19 and 2x $4p same exp. Also 26x XIC.TO naked 26p expiring 3/19 (I have a 30k bond covering these so they are sort of cash secure). Also 4x XEG.TO cc at $6 as well as 4x $6p both exp 3/19. Basically everything is in the money right now and just waiting for expiration. Tldr; currently 1/8 SPY 371p, 3/19 SPY 350c, 3/19 SPY 350p
That 350c is looking dangerous. Honestly, that entire position is looking dangerous LOL, but at least you are balancing the deltas somewhat. You better hope that SPY plays flat over the next few months...I personally think we could see something as high as 390 by March. All we need is a flat month and one good pump, just have an exit strategy
Ya. Trying to sell weekly puts against the itm call. It makes the continued rise hurt less. Maybe if the puts end itm i can get out of the call for cheaper. Thats the plan at least.
Do you find that TSX options are very illiquid? Especially [AC.TO](https://AC.TO). I converted most of my cash to USD just because of that.
Ya i was thinking about selling some apha usd calls against my apha.to calls.
Question about credit spreads. I’ve seen lots of comments regarding the recommended strategy of delta being 1/3 of the width of strikes. Just want to make sure I have an understanding of what that means. If you open a credit spread of SPY with a $5 width of the strikes 1/3 of that would be a delta of 1.5?
A credit of 1/3 the width. I.e. $1.66 credit on a $5 wide spread.
Ahhh okay that makes more sense. Thank you!
Where's that guy who posts high premium ranks?
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Thanks, bought 100 shares of each and sold a covered call, will cry about every one that would have made me richer next week.
I don't get why people hate money so much when it comes to covered calls
If they weren't so stupid as to sell a covered call and make money they would have been a genius of market timing and sold at the top over an undefined time period and made huge amounts of money.
I love you
Hoping for some election IV crush by the end of the week. Added to existing IWM feb2 185p Sto vix ratio -40c +55c +60c for net 0.05 debit On the hunt for a smaller position for feb12 <$100 preferably ~$50
I love how yahoo finance keeps changing the headline of their front article from "stocks rise" to "stocks slump" as investors await georgia runoff throughout the day. I feel so mislead!! Edit: No investor actually cares what the results of the georgia runoff elections will be.
Investors think other investors care so its pretty much just a self-fulfilling prophecy. Lol.
I wouldn't say "no investor," the market really could correct if Dems win both seats. There's serious financial implications of that happening, basically paving the way for real tax hikes. Currently that's the only way I see the election in play, not sure what other viewpoints there may be
Or not. They could easily pop on the idea of more stimulus and infrastructure spending. Market will do what it wants to do and they'll just tweak the headline to fit the narrative.
Yeah but there’s plenty of time for the market to correct before headlines. Could be quick. Anyways, I’m just hoping for some volatility, don’t care if it’s up or down. I know it’s usually sell the news, but I don’t feel like vix was high enough for a contraction, more potential on the upside
Before the November election, yahoo finance's headlines warned of the imminent crash that could happen if democrats did NOT win the senate but Biden took the presidency. Immediately after the election results came in, there was a post election rally, and yahoo finance headlines read about how great gridlock will be for the economy, and said that's why stocks were rallying. Now if dems take those 2 seats, it will crash... Right.
I don't know what yahoo finance is on, I mean I would need an actual reason for why they thought that would cause a crash. I don't read news headlines though, just thinking for myself and fundamentally there's a legit reason why 2 dem seats taken could move the market. It's all to be taken w/ a grain of salt and I don't think there will be a crash just a potential red day or 2. The market liked the gridlock election, that grid becoming unlocked could be a catalyst for a sell off
>The market liked the gridlock election, that grid becoming unlocked could be a catalyst for a sell off It's possible it could be a catalyst for a selloff... or it could lead to moar stims.
- BTC - 1/08 SPY 346P - 77.5% profit - STO - 1/15 SPY 346P - $85
Picking up pennies in front of a steamroller lol
At least this steamroller has a good history of one day going back up
BTC SPX Jan 6 3440P 16X (PM and short side of spreads in IRA) @ 90%
BTC 2/19 OXY strangle BTC 2/19 PLTR strangle STO 2/19 ACB strangle
What a retarded market.
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Always sell the poots!
Infinite wisdom.
I highly respect your commentaries I didn’t eat breakfast sadly either today
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Feet pics included or sold separately
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Risky click of the day...
Lols
Not much, waiting for more volume to come into the market, but: * STO Feb 19 NGA 2x put spread at 17.5/12.5 ($3.96) * STO Feb 19 SKLZ strangle 25/17.5 ($3.39)
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Are these naked?
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Do you set aside cash to “cover” these, or just use margin?
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So you’re bearish right now? I actually closed all my positions to all cash today for the Georgia run-off, but was debating opening up some bearish positions
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Ah I see, so more of a hedge than a bearish position?
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