- 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
OPTIONS: In The Money Call strategies?
Posted on 6/5/18 at 2:19 pm
Posted on 6/5/18 at 2:19 pm
What’s your criteria for buying these?
Stable blue chip?
How far out do you look?
A month? Three months? Longer?
What’s your desired % gain before selling?
How often do you do this?
Stable blue chip?
How far out do you look?
A month? Three months? Longer?
What’s your desired % gain before selling?
How often do you do this?
2
Posted on 6/5/18 at 3:28 pm to bayoubengals88
If I'm doing ITM calls.. it's set up at a LEAP(greater than 9 months) and I'm looking for a tightened spread and an delta of at least .75.... moreless a stock replacement
hardly every blue chips for me.
desired gain before rolling the trade is usually 100 -150 %.
I am mostly a swing trader but I currently only have about 3-4 LEAPS on: SQ Rolled from $27 strikes, V have not rolled yet $90 strikes, IWM $165's Just opened last week - those are more ATM and not so DITM.
As far as ITM LEAP's or options that I've bought ITM, thats all I have on right now.
hardly every blue chips for me.
desired gain before rolling the trade is usually 100 -150 %.
I am mostly a swing trader but I currently only have about 3-4 LEAPS on: SQ Rolled from $27 strikes, V have not rolled yet $90 strikes, IWM $165's Just opened last week - those are more ATM and not so DITM.
As far as ITM LEAP's or options that I've bought ITM, thats all I have on right now.
Posted on 6/5/18 at 3:33 pm to b-rab2
Also for the choppy -static summer months, I have been doing a lot of short put spreads about 2-3 months out on select names. I opened FLT AUG 195/185 short put spread(SPS) today along with HD July 185/175 SPS,and SPY JUNE 272/269 SPS
Posted on 6/5/18 at 4:59 pm to b-rab2
I followed you for a while. I’m familiar with high delta and stock replacement, and that’s kind of what I’m looking for.
I’ll give you an example:
NKE Jan 2019 $60 calls
Current share price is $74
Premium on the option is $15
What would you do?
I’m just trying to keep it simple as I learn and avoid mistakes.
If you could explain the details behind your Visa trade that would probably be helpful.
When you bought, why you’ve yet to sell, etc.
I’ll give you an example:
NKE Jan 2019 $60 calls
Current share price is $74
Premium on the option is $15
What would you do?
I’m just trying to keep it simple as I learn and avoid mistakes.
If you could explain the details behind your Visa trade that would probably be helpful.
When you bought, why you’ve yet to sell, etc.
This post was edited on 6/5/18 at 5:41 pm
Posted on 6/5/18 at 8:16 pm to bayoubengals88
$60 calls for $15 and the current price is $74. I think that is a pretty good deal. Historically NKE has a positive return during summer months of like 5 - 8% I think. If you believe NKE will gain back market share it could be a great trade. Technically its been in a base for a long long time which makes its breakout move pretty substantial. P/E is a little high but earnings are growing and that could justify the higher P/E. You could also look at some other names that I probably a good deal for leaps, YNDX, CPB, and probably GE for a 2020 leap.
Probably a solid trade given delta is high and theta is 0.01. any move forward be a good gain.
Visa and other payments such as MA are huge international growth stories. I bought V January 2019 $90 calls on 10/25/2017. At the time it was around $110. I don't remember any of the greeks but $90 strike on a $110 stock was probably around .75.
I have not rolled up and/or out yet because I'm only up 65%. And because I don't look at that position very often. ha Dont get me wrong, I've trimmed it as I've booked gains first at 20% and then a little more at 40%. now that you say that, I might be a good idea to look at a roll. I hardly ever take shares because it chews up too much money also. If you have any more questions, let me know.
Probably a solid trade given delta is high and theta is 0.01. any move forward be a good gain.
Visa and other payments such as MA are huge international growth stories. I bought V January 2019 $90 calls on 10/25/2017. At the time it was around $110. I don't remember any of the greeks but $90 strike on a $110 stock was probably around .75.
I have not rolled up and/or out yet because I'm only up 65%. And because I don't look at that position very often. ha Dont get me wrong, I've trimmed it as I've booked gains first at 20% and then a little more at 40%. now that you say that, I might be a good idea to look at a roll. I hardly ever take shares because it chews up too much money also. If you have any more questions, let me know.
Posted on 6/5/18 at 10:35 pm to b-rab2
Thanks, that’s all pretty clear.
Yeah I don’t plan on taking shares either.
So time decay is not a threat with deep in the money leaps?
When you say rolling are you talking about rolling your gains into another position?
Yeah I don’t plan on taking shares either.
So time decay is not a threat with deep in the money leaps?
When you say rolling are you talking about rolling your gains into another position?
Posted on 6/6/18 at 9:43 am to bayoubengals88
Its usually not, You'll have to look at the theta. usually leaps that are a year out don't have theta decay.
Rolling as in closing current position and opening a higher strike position. Example. I had SQ $27 calls stock price is now like ~$60-65, so I rolled up: closed the $27 calls and opened the $50 calls in the same expiration. Rolling up and out refers to what I just mentioned and adding more time.
Rolling as in closing current position and opening a higher strike position. Example. I had SQ $27 calls stock price is now like ~$60-65, so I rolled up: closed the $27 calls and opened the $50 calls in the same expiration. Rolling up and out refers to what I just mentioned and adding more time.
Posted on 6/7/18 at 4:22 pm to b-rab2
Do you ever mess with OTM near expiration, medium term, or leaps?
Posted on 6/7/18 at 5:57 pm to bayoubengals88
i like ATM strangles..ideally 10-15 mins before the market close before an earnings announcement.
i like to see a history of big movements...and either a lack or disconnect of guidance from current price .
medium size companies work best....ideal is a stock with much short interest.
i like to see a history of big movements...and either a lack or disconnect of guidance from current price .
medium size companies work best....ideal is a stock with much short interest.
Posted on 6/7/18 at 6:25 pm to mrgreenpants
Explain strangle?
Posted on 6/8/18 at 10:28 am to bayoubengals88
sorry..
i guess it would have been more proper call what i called a 'at the money' strangle.....a STRADDLE.
strangle/straddle= being long both a call and put.
straddle= long @ same price
strangle=diff strike prices.
profit come from any big move...up or down
the problem...errbody is buying calls(or puts) around earnings...and high prices are the kryptonite of option buyers.
there is that "volatility rush" going into announcements (i like place my orders last moment before market close)
$MU is coming up.
it has a predicted move of 7%
looks like MU beats about 75% of the time..and misses 8% recently.
however, with the r/wallstreetbets crowd driving up option prices..even if you're right the immediate volatility crush on MU tends to eat up profits.
i'd be more inclined to skip this one(or maybe be a seller to benefit from the rush..and crush)
$FNSR is expected to move 10% and is currently trending.
they miss about 50% the time... i'd like them better as a long candidate
jmo
i guess it would have been more proper call what i called a 'at the money' strangle.....a STRADDLE.
strangle/straddle= being long both a call and put.
straddle= long @ same price
strangle=diff strike prices.
profit come from any big move...up or down
the problem...errbody is buying calls(or puts) around earnings...and high prices are the kryptonite of option buyers.
there is that "volatility rush" going into announcements (i like place my orders last moment before market close)
$MU is coming up.
it has a predicted move of 7%
looks like MU beats about 75% of the time..and misses 8% recently.
however, with the r/wallstreetbets crowd driving up option prices..even if you're right the immediate volatility crush on MU tends to eat up profits.
i'd be more inclined to skip this one(or maybe be a seller to benefit from the rush..and crush)
$FNSR is expected to move 10% and is currently trending.
they miss about 50% the time... i'd like them better as a long candidate
jmo
Posted on 6/8/18 at 10:31 am to bayoubengals88
most of my options I buy are OTM. I might take a few lottos on the indexes near expiration.
Posted on 6/27/18 at 10:06 am to b-rab2
Man, options simply leave stocks in the dust.
Less than two weeks ago I bought two different leaps on a blue chip that was having a bad day...so I got them at a discount.
Today I’m up 55% on that small $400 investment.
The stock is up maybe 4% since that time. WOW!
These were out of the money calls. About 20-25% out of the money with an expiry date in January of 2020.
Less than two weeks ago I bought two different leaps on a blue chip that was having a bad day...so I got them at a discount.
Today I’m up 55% on that small $400 investment.
The stock is up maybe 4% since that time. WOW!
These were out of the money calls. About 20-25% out of the money with an expiry date in January of 2020.
This post was edited on 6/27/18 at 10:08 am
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News