- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Twitter puts
Posted on 1/9/21 at 5:20 am
Posted on 1/9/21 at 5:20 am
Just set an order for 7 March 19th contracts at $42, cost is $1074. Good idea or not with all the ill will the company is causing itself? It's dropped almost 2 dollars to $49.5 after hours already and has been below $42 for most of the year.
5
Posted on 1/9/21 at 7:26 am to Diseasefreeforall
quote:
Good idea or not with all the ill will the company is causing itself?
Are you buying or selling the put?
If buying, you’ve got insurance.
If selling, the question is would you set a limit order at $42?
Posted on 1/9/21 at 7:39 am to makersmark1
quote:
Are you buying or selling the put?
buying and don't own any shares.
This post was edited on 1/9/21 at 7:41 am
Posted on 1/9/21 at 7:48 am to Diseasefreeforall
It may not show up on their reports until the end of q1 because the election cycle had Twitter booming.
Posted on 1/9/21 at 9:53 am to tenderfoot tigah
So you bought a $42 strike put? So your breakeven is like $40.xx something?
Posted on 1/9/21 at 12:54 pm to Diseasefreeforall
Not sure what you mean by set an order? Did you buy these puts on Friday or did you place an order to buy the puts on Monday with a set limit price?
Posted on 1/9/21 at 1:00 pm to Diseasefreeforall
quote:
Just set an order for 7 March 19th contracts at $42, cost is $1074. Good idea or not with all the ill will the company is causing itself?
Whether or not it's a good idea mostly depends on your profit target or plan for exit. Do you expect it to breach 42 by March expiration, or have you set a % profit target?
Public "ill will" is a difficult thing to gauge, as far as its affect on equity pricing. So I don't know. It's been awhile since I've used TWTR as an options underlying. As we get closer to earnings, I may take a look at it though (but on the short options side).
Posted on 1/9/21 at 1:37 pm to Diseasefreeforall
If you are trying to profit from a down draft it’s probably too late. Looks like your pricing is based on the options price during Friday’s trading day and doesn’t reflect what happened in extended trading after the close or Monday morning’s premarket.
Posted on 1/9/21 at 2:14 pm to Diseasefreeforall
When do you sell?
Time decay is real.
I guess the calls that trade 100s of contracts a day can be bought then sold.
What if the move goes against you?
Do you sell with stop loss?
I’ve only sold calls and puts.
I have not bought them so I want to learn about how to manage time decay and when to bail.
Thanks.
Time decay is real.
I guess the calls that trade 100s of contracts a day can be bought then sold.
What if the move goes against you?
Do you sell with stop loss?
I’ve only sold calls and puts.
I have not bought them so I want to learn about how to manage time decay and when to bail.
Thanks.
Posted on 1/9/21 at 2:44 pm to makersmark1
quote:
I’ve only sold calls and puts.
I have not bought them so I want to learn about how to manage time decay and when to bail.
Thatguy777 had a nice thread going last year where he well described his long options strategies. IMO, he's a sound, reasonable and rational options trader (mostly buy side - whereas I'm mostly a premium seller).
I don't see him as much anymore. But both he and Brab (think I got that right) would be good ones to learn from on the long side.
Posted on 1/9/21 at 4:59 pm to Jag_Warrior
Got a link? Usually I sell calls on top of a spike. Also when implied volatility is high. As the implied volatility drops the harder it is for contract to swing in the purchasers favor. Stock price can even rise or drop a whole point and purchaser’s profit may not even budge.
Look up YouTube videos from Option Alpha regarding using options for income.
Look up YouTube videos from Option Alpha regarding using options for income.
Posted on 1/9/21 at 6:59 pm to makersmark1
quote:
When do you sell?
Time decay is real.
Thanks for all the feedback. I cancelled my order. I'm not a big options guy but I've made profits over the last year buying calls on pharmas with upcoming catalysts, FDA approvals or clinical trial results.
In those cases, time decay is not as big of an issue as long as a positive approval or trial result is made public before the call's expiration date. Time decay can shave some profit but the bump on good news is enough to make it a good trade anyway.
Buying these twitter puts would be getting out of my lane. I generally do well when I stay with my strategies but get in trouble when I start screwing around. Watch twitter dump to $39 Monday now that I'm not buying the puts.
Posted on 1/9/21 at 7:16 pm to jangalang
quote:
Look up YouTube videos from Option Alpha regarding using options for income.
I agree.
For premium selling, both OptionAlpha (Kirk du Plessis) and Tastytrade (Tom Sosnoff) are great resources. I’m an OptionAlpha subscriber, but the free resources are more than enough to give a person a solid understanding of income based options trading. And if a person wants to get involved on a pro or semi-pro level, the firm that I deal with is SMB Capital... a prop shop based in Midtown Manhattan.
I’m not endorsing them, but for long options strategies, especially unusual activity, Jon and Pete Najarian are people you might look into.
Posted on 1/9/21 at 7:55 pm to Diseasefreeforall
Are you guys in the weekly call trading business doing it full time?
I work full time with a side business so my trades are limited and I can’t monitor hour by hour.
I work full time with a side business so my trades are limited and I can’t monitor hour by hour.
Posted on 1/9/21 at 9:39 pm to Jag_Warrior
quote:
And if a person wants to get involved on a pro or semi-pro level, the firm that I deal with is SMB Capital... a prop shop based in Midtown Manhattan.
Wow that’s pretty cool.
Posted on 1/10/21 at 12:22 am to Diseasefreeforall
Thanks for clarifying that you had simply placed an order to buy those puts for Monday.
If things stay the same through Monday morning, the price of buying those March $42 puts should be more expensive. You could always buy fewer contracts or choose a different strike price.
KickPuncher claimed
Another user mentioned that time decay is real, but it is not a real concern since March expiration is over 2 months away.
If things stay the same through Monday morning, the price of buying those March $42 puts should be more expensive. You could always buy fewer contracts or choose a different strike price.
KickPuncher claimed
quote:In theory, if you hold the put until the last second of trading on March 19, then TWTR would have to be at that price for you to break even. There is nothing to say that you can't break even (or even better, turn a profit) by closing the put before then without TWTR reaching that price he mentioned.
$42 strike put? So your breakeven is like $40.xx something?
Another user mentioned that time decay is real, but it is not a real concern since March expiration is over 2 months away.
Posted on 1/10/21 at 6:34 am to tigerfan4444
quote:
Another user mentioned that time decay is real, but it is not a real concern since March expiration is over 2 months away.
For option traders who buy to sell; they must be right about 2 things for the trade to work- the direction and the timing.
I like the option sellers odds better as long as it’s a covered call or a cash secured put.
If you were going to sell Acme Corp at 45 anyway, selling a covered call with a strike of 45 garners the premium while you wait to see if it hits 45.
If you wanted to buy Acme Corp at 45, selling a cash secured put At a strike of 45 can help you get the position while getting the premium,
This spring I sold many puts like DIS 55 and 65.
I got paid premium that day.
Some buyer paid me. So far he’s lost money and will be very unlikely to recoup those losses.
Also sold puts on GS, BLK, BRK.B, RF, and several other stocks I either already own or follow.
Trading options requires 2 exquisite decisions: when to buy, and when to sell. It also requires the market to not only agree with your assessment, but to agree in a timely fashion.
Good luck with your trading.
Posted on 1/10/21 at 11:32 am to makersmark1
That’s true. Good post. Anybody know about vertical vertical spreads, calendars, and iron condors? Learning about those now. Been paper trading spreads lately.
Posted on 1/10/21 at 12:27 pm to jangalang
quote:
Anybody know about vertical vertical spreads, calendars, and iron condors? Learning about those now. Been paper trading spreads lately.
Yes, iron condors/strangles, iron butterflies/straddles, horizontals, etc.
Are you going long or short on your paper trades?
Posted on 1/10/21 at 12:36 pm to Diseasefreeforall
I prefer to short the stock and buy in the money calls. This scenario gives you plenty of profit potential if the stock drops over $2.00 and limits your risk in case the price rises.
I will usually do this around 2:00 pm to miss out on time decay and catch price volatility the following day.
I will usually do this around 2:00 pm to miss out on time decay and catch price volatility the following day.
This post was edited on 1/10/21 at 12:43 pm
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News