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re: NVDA ER today...what are you thoughts?

Posted on 9/13/22 at 10:36 am to
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26721 posts
Posted on 9/13/22 at 10:36 am to
Thanks for the explanation of the ideal credit for the jade lizard.

Meanwhile, AMD is getting slaughtered today
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 9/13/22 at 1:43 pm to
Yep, lots of carnage in tech. I’ve got 73/97 short strangles on AMD. I might roll the call side down if it tests the short put side.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26721 posts
Posted on 9/13/22 at 2:58 pm to
Is that a naked short call on the 97?
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 9/13/22 at 4:56 pm to
Yep. Both legs of a strangle are always naked. The jade lizard I mentioned to you would be an alternative strategy with limited upside risk. An iron condor would have defined risk on both legs. My strangles are typically skewed with less upside risk vs. downside.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26721 posts
Posted on 9/13/22 at 7:41 pm to
Whew. I couldn't sleep at night holding a naked call like that. You've been doing this a while though and. I guess with a market cap as big as AMD, you don't really have the risk of the underlying going up 50% overnight or something crazy
Posted by Jag_Warrior
Virginia
Member since May 2015
4292 posts
Posted on 9/13/22 at 10:05 pm to
I know what you mean. One never knows when a black swan might fly over and poop on you.

I did defined risk iron condors and verticals for a long time before I felt comfortable enough to do strangles or any undefined risk trades - and it required a higher level of brokerage approval. I still do iron condors as well, and I pay close attention to my risk vs profit profile when I put on undefined risk trades.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26721 posts
Posted on 9/13/22 at 10:09 pm to
I follow a guy who does undefined (in theory) risk trades on UVXY. It's interesting but you have to know how to manage a position
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