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re: Options Trading Thread

Posted on 4/20/24 at 8:15 am to
Posted by Jag_Warrior
Virginia
Member since May 2015
4126 posts
Posted on 4/20/24 at 8:15 am to
Are you looking at doing some earnings trades?
Posted by Jag_Warrior
Virginia
Member since May 2015
4126 posts
Posted on 4/22/24 at 4:43 pm to
TSLA on deck after hours tomorrow. 72% IV and 99% IV percentile! Who dares to test the option waters with this one?

I’ll likely do a smallish 10-12 delta short put play in my investment account. It’s been beaten down pretty badly of late. But if nothing is said on the call about addressing the growing low price Chinese EV competition with a higher volume, but lower margin vehicle, like a “Model 2”, more selling pressure could hit.

But at some price, it’s at least worth it to date TSLA (as a tradeable), though I have no desire to buy it a ring. We’ve “dated” many times over the years, and its high IV and price fluctuations have typically made me good money. But let’s see how it pans out this time.
Posted by BCreed1
Alabama
Member since Jan 2024
1288 posts
Posted on 4/23/24 at 9:57 pm to
I am.


I have AMZN and GOOG debit spreads.
Posted by Jjdoc
Cali
Member since Mar 2016
53502 posts
Posted on 4/25/24 at 3:45 pm to
I did Roku, Amzn, Google. Holding tsm longs in 2025
Posted by BCreed1
Alabama
Member since Jan 2024
1288 posts
Posted on 5/14/24 at 11:02 am to
@ Jag or anybody else.

I have a question on the down side to this trade.

Ticker is SQQQ.
- Pays a 9% divi
- it's at a low because the market is up. It goes higher as the market drops.
- Total cost per share, $10.50

SQQQ provides (-3x) inverse exposure to a modified market-cap-weighted index of 100 of the largest non-financial firms listed on the NASDAQ.
Index-Tracked: NASDAQ 100 TR USD

My reasoning for this purchase:

- If the market drops, this goes up offsetting some loses.
- Buy low, sell high right.
- I collect the divi
- I can sell calls on it weekly. I will not make but $5-15 on that.
- The market would have to scream in order for this to have any real loss.


OR

- Purchase a PMCC for 2 years out.
- The $7 strike is $4.75
- Purchase 2
- Sell calls on it.

I lean towards the first option due to the divi. It pays out $1.04 per year on a semi annual basis.


I'm looking for push back against this investment. What am I missing with this?
This post was edited on 5/14/24 at 11:07 am
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