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re: All About OPTIONS - THREAD
Posted on 12/7/21 at 8:18 pm to lil 7thward
Posted on 12/7/21 at 8:18 pm to lil 7thward
quote:
Thanks for the thread. I'm studying the basics of options, but I'll be advanced one day.
Absolutely. hope we can help!
1
Posted on 12/7/21 at 8:30 pm to Brobocop
I wanted to cover a strategy for folks who like the wheel strategy, covered calls, poor man’s covered calls, collars, etc.
ZEBRAS: Zero Extrinsic Back RAtio Spread
Bullish: Sell ATM Call, Buy 2 ITM Calls.
Bearish: Sell ATM Put, Buy 2 ITM Puts.
where Delta is nearly 100 and Theta (time decay) is close to 0.
Read more here:
ZEBRA
ZEBRAS: Zero Extrinsic Back RAtio Spread
Bullish: Sell ATM Call, Buy 2 ITM Calls.
Bearish: Sell ATM Put, Buy 2 ITM Puts.
where Delta is nearly 100 and Theta (time decay) is close to 0.
Read more here:
ZEBRA
quote:
The zebra strategy is a great alternative to long/short stock with nearly all the upside and less of the downside!
Posted on 12/7/21 at 8:31 pm to LSUtoOmaha
A friend of mine does very well with UVXY Options.
Posted on 12/7/21 at 8:44 pm to PillPusher
quote:
Buy calls on a down day. Sell calls on an up day. Don’t chase. Get out at 20% instead of holding thinking that things going to 2x. You’ll be left holding a worthless expiry.
I disagree with pretty much all of this, but everyone has their own strategy.
I have been very successful with “letting winners run” and sometimes buying breakouts is the right thing to do. Sometimes when stocks are down they continue down. As a generalized statement this does not make sense to me
Posted on 12/7/21 at 9:07 pm to thatguy777
quote:
I have been very successful with “letting winners run” and sometimes buying breakouts is the right thing to do. Sometimes when stocks are down they continue down. As a generalized statement this does not make sense to me
Stocks certainly can get momentum and continue to run, but there's also an argument to be made about reversion to the mean.
I like to use basic indicators to identify those opportunities.
Holding profitable options long term can be tricky. Never a bad idea to have a plan.
Posted on 12/7/21 at 9:12 pm to Brobocop
No doubt, I mainly use technical indicators to determine entries/exits combined with options flow. But just because a long option call is up 20% is no reason to get out, even the underlying being up 20%. I'd rather watch for a key level to breakdown and then get out. 20% is arbitrary as well. A stock that drops below and closes below the 200ma a few times in a row is likely headed much lower. Buying calls there is not the best idea, in my opinion. Having a plan is a must, but buying low and hoping for higher and selling high and hoping for lower isn't mine
Posted on 12/7/21 at 9:17 pm to thatguy777
100% agree. Those highs and lows need to be well defined based on key levels of resistance and support.
Posted on 12/7/21 at 9:29 pm to Brobocop
quote:
Big fan of credit spreads, ICs and 10-16 delta strangles, etc. all 30-45 DTE. I’m a firm believer in the “tasty way”
Sosnoff is my heeero. 
A bit off topic, but are any of you guys planning to attend the MoneyShow/Traders Expo in Las Vegas in February?
Posted on 12/7/21 at 9:32 pm to Jag_Warrior
quote:
the MoneyShow/Traders Expo in Las Vegas in February?
Tell me more
Posted on 12/7/21 at 9:35 pm to Jag_Warrior
quote:
Jag_Warrior
We're gonna be buddies!!
Posted on 12/7/21 at 9:36 pm to b-rab2
quote:
quote:
the MoneyShow/Traders Expo in Las Vegas in February?
Tell me more
Yes. Please explain.
Posted on 12/7/21 at 9:39 pm to Brobocop
Probably one of the best examples of 2021. I primarily use the 8 and 21 EMA. See where the 8 crosses above the 21? roughly around 125 on August 2. UPST does not close under the 21 consecutive days until Oct 27 at 314. Shortly after the 8 crosses below the 21 and down she goes. Dramatic example, but think if you had long calls after the initial 8/21ema cross and closed after 20%..
This is just an example of how I use technicals to determine entries/exits, there was massive call flow in this name as well.
Unfortunately I missed this one
Posted on 12/7/21 at 10:10 pm to Brobocop
Have some fun and get some trading edumacation.
MoneyShow/Traders Expo
It’s going to be at the Bally’s/Paris convention center. If you have a Caesar’s account, score some points for yourself too. MoneyShow has reserved a block of basic rooms. Basic attendance is free. You can pick and choose which speakers or events you might want to pay to attend.
Oh, forgot the date! February 24 - 26.
MoneyShow/Traders Expo
It’s going to be at the Bally’s/Paris convention center. If you have a Caesar’s account, score some points for yourself too. MoneyShow has reserved a block of basic rooms. Basic attendance is free. You can pick and choose which speakers or events you might want to pay to attend.
Oh, forgot the date! February 24 - 26.
This post was edited on 12/7/21 at 10:13 pm
Posted on 12/7/21 at 10:25 pm to thatguy777
UPST was a good example indeed.
I sold the $145/150 Put Cr Spread 01/07 exp on 12/2. Just shut it down today for my 50% MP target.
The Major drop was after earnings. 3Q earnings season was rough for a lot of popular names, regardless of the result too!
I sold the $145/150 Put Cr Spread 01/07 exp on 12/2. Just shut it down today for my 50% MP target.
The Major drop was after earnings. 3Q earnings season was rough for a lot of popular names, regardless of the result too!
Posted on 12/7/21 at 10:33 pm to Brobocop
Nice trade! Earnings wouldn’t have mattered to me. On growth stocks the consecutive closes under the 21ema woulda been my cue to run for the hills. About a week before earnings
Posted on 12/8/21 at 5:17 am to thatguy777
Yesterday was the perfect day for a short term long option ITM trade. I’ve found that if futures are big either way, by 10am the trend has typically begun for the day. I was in and out for a 10% gain in an hour. You can definitely get it wrong with this strategy but I’ve had more winners than losers by a good margin.
If market is up big again I’ll write calls for Friday expiration later in the afternoon. I have a few stocks where people are paying stupid premiums (Coinbase as example).
If market is up big again I’ll write calls for Friday expiration later in the afternoon. I have a few stocks where people are paying stupid premiums (Coinbase as example).
Posted on 12/8/21 at 7:18 am to gatorsimz
quote:
write weekly OTM calls where the strike is around 10% above market price. If I don’t close or it exercises I’ll write short term puts just below market price to get back in. I’m a big fan of put writing. Why buy at current market price when you can get back in lower while collecting a premium? Assuming you’re trading a round lot.
I do this similarly in my Roth where I’m holding companies long term. I use options to boost the returns/holdings.
I write monthly OTM options with strikes about 20% above market. Then I turn around and use the premium to buy more shares of the underlying. If it gets assigned, I sell puts until I buy the shares back.
Depending on the stock, this has been good for me to add 1-2 shares of the underlying company per month. It’s like a cheat code
I haven’t had a situation yet where the underlying has skyrocketed and I haven’t been able to eventually get the shares back by selling puts. Since my calls are 20+% over market and a month of DTE, if they get assigned they normally have a pullback at some point where I can re-enter.
Posted on 12/8/21 at 7:58 am to PillPusher
quote:
Buy calls on a down day. Sell calls on an up day. Don’t chase. Get out at 20% instead of holding thinking that things going to 2x. You’ll be left holding a worthless expiry.
What do you use as a guide to get out if your calls go the wrong way? Is it if the options fall 10%, 30%, or something else.
Posted on 12/8/21 at 9:03 am to Brobocop
TRADE ALERT:
For what it's worth, I think today trades sideways (+/- $15 either way on the SPX).
I ran a 0 DTE IC $5 wide spread for a $1.20 cr. $4650/$4655P $4720/$4725.
20ish Delta.
This is purely a scalp play. I'm looking to take profits on this around 40% of MP.
Update: All out for a $50 winner.
For what it's worth, I think today trades sideways (+/- $15 either way on the SPX).
I ran a 0 DTE IC $5 wide spread for a $1.20 cr. $4650/$4655P $4720/$4725.
20ish Delta.
This is purely a scalp play. I'm looking to take profits on this around 40% of MP.
Update: All out for a $50 winner.
This post was edited on 12/8/21 at 2:30 pm
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