re: Options Trading Thread

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When does the call expire?

Are you familiar with how to execute a roll? Depending on the situation and pricing, you might consider rolling the option out (expiration date) at the same strike or maybe out and up (date and strike price) IF you can do it for a net credit.

Just something to consider if you want to buy yourself some more time and possibly keep the stock.

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Expire today but I think PPI is about to kill them

I am okay if it gets called I think. We are bumping along bottom but don't feel like I have to be in market

Got greedy - if I can pull weekly $100-200 on covered call over year free stock. I know it won't last that long though.


Good advice on rolling basically I just sell further out and use proceeds to cover buy to close?

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Good advice on rolling basically I just sell further out and use proceeds to cover buy to close?

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Well, the reverse of that. I’m not sure which platform you’re using. On Think or Swim, I just select roll and then decide what strike and date I want for the new option series. It’s done as a simultaneous series of transactions.

But if you have to enter the trade manually, you’d FIRST buy to close the short calls you have now (so you wouldn’t be considered naked on any new short calls - your brokerage might reject that order unless you’re approved for that) and then immediately sell to open the new ones (in that order).

And of course, your net credit (or debit) is calculated from the net proceeds from the original sell to open, minus the net cost of the buy to close and finally plus the net proceeds from the new sell to open.

I’m not sure what your cost basis is or what price you’d be content with, but I just took a look at the 12/23 expiration 66 strike call for OKTA. Midpoint pricing for that call is around $2.87 now. It would cost you about $1.85 to buy back the 63 call that you’re short. I don’t know what you originally sold it for, but that’s an automatic credit, no matter what. And you have the potential of picking up another $3/share.

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I’m not sure what your cost basis is or what price you’d be content with

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I bought in September at $60.76

Just two weeks ago realized why not covered calls. As long as I make money on combined I don't really care. Net of my last two weeks of options play lowered my basis to $58.15. So basically up 10% since September.

So 200 shares at total cost $12k in a year those shares are free if I can continue to generate $200 a month.

I am sure there is a downside somewhere but good live action to get toe wet in options

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90 dollar puts for 20 Jan on RXDX. overbought with outrageous offering price.

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Just a heads up.

Put spread will reduce your risk.

Buy to open Jan 20 put @ $90 for 4.50
Sell to open Jan 20 put @ $80 for 2.55

Total debit of $1.95
Spread of 10.

This gets you a 5 bagger at $80 at exp.

Another 0 DTE Iron Fly winner this morning. +$1.55

STO 4095 C/P
BTO 4045 P
BTO 4145 C

$32.35 Cr.

Bought back 17 minutes later for $30.80.

Trade Strategy Breakdown:

Sell an Iron Fly with 50pt wide wings immediately at open.
Set a limit order for $1.50 less than credit received.

Stops are managed manually. I set alerts for SPX at opening strike + credit received up/down. Once those alerts trigger, I manually close the trade for a loss, no questions asked. No emotions. Take the loss and move on.

i.e. Opened today's trade at SPX=4095. I would close the trade for a small loss if SPX broke 4063 (4095-32) or 4127 (4095+32).

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Stops are managed manually. I set alerts for SPX at opening strike + credit received up/down. Once those alerts trigger, I manually close the trade for a loss, no questions asked. No emotions.

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I meant to ask you before if you trade throughout the day with this and also other strategies?

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Rolled another week 12/23 to 68 calls (closed $70.91)

Will probably let them go

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As long as you can keep rolling for a net credit, why not just keep rolling up and out?

BTW, you’ve done well with OKTA, haven’t you?

not a good day for iron condors today, yeesh!

Which short put strike did you have today?