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re: Options Trading Thread
Posted on 12/20/22 at 9:30 pm to GeneralLee
Posted on 12/20/22 at 9:30 pm to GeneralLee
Long call, I think I said that right, side of TSLA has got my attention. Overcooked in the short term imo, may get spunky on it if I see some buying traction tomorrow early
2
Posted on 12/21/22 at 10:59 am to DTRooster
Got no juice in a bouncing market and the contracts are way too high for my liking. Discretion over valor
Posted on 12/21/22 at 9:33 pm to Jag_Warrior
quote:
put on a couple more short SPX syn. strangles (4190/3770) for next week’s expiration at $8.10/contract. Current pricing is $3.85.
That one has been on a wiiild ride. Never a problem on the short call side, but that short 3770 put was in danger until yesterday’s recovery. Today’s rally put icing on it. At one point the put side alone had swelled up to $21+/contract (from an opening credit of 4.05). Decided to sit & wait before doing a down & out roll. Sometimes it pays to hold steady; current put side price is .75 and total strangle price is .78/contract.
Hopefully all of you are making it through this volatile week in one piece.
Posted on 12/21/22 at 9:39 pm to DTRooster
quote:
Long call, I think I said that right, side of TSLA has got my attention.
Yep, you’d be long that call with a buy. Looking for a short term trading bounce? If you’re bullish you could go long on a call or short a put or put spread (since IV and IV percentile are relatively high).
Not a recommendation… just sayin’.
Posted on 12/22/22 at 6:11 am to Jag_Warrior
Trading bounce was the thought but didn’t like the reaction this morning and the premiums seemed a little obscene to me for being 2 days out. Maybe I’m that out of practice
I just look for big moves and play the whipsaw or in a normal market the macd, rsi cycles. Win as much or a little more than I lose and get a big hitter mixed in. Paying for my hobbies is all I’m doing and it’s worked for me so far. Probably in the future I’ll get more serious
quote:I vaguely have an idea what your talking about, lol. Never took the time or patience, which I have little of both, to get into real options trading strategies.
short a put or put spread (since IV and IV percentile are relatively high).
I just look for big moves and play the whipsaw or in a normal market the macd, rsi cycles. Win as much or a little more than I lose and get a big hitter mixed in. Paying for my hobbies is all I’m doing and it’s worked for me so far. Probably in the future I’ll get more serious
Posted on 12/22/22 at 7:04 am to DTRooster
Just as an illustration, not a suggestion: the weekly 12/30 120 strike put on TSLA traded at .86/contract at the close yesterday. That was at an approximate 12.5 delta (or roughly 87.5% probability of expiring out of the money).
Max gain per contract would be $86 (minus fees). Max loss would be $11,914 if you got the stock put to you and it went to 0. One could buy a protective put below the short 120 put (making it a put credit spread) and reduce the max loss, but also reducing the max profit.
One of the main reasons that I sell options instead of buying options is because I don’t have to predict direction, only trade based on range probabilities. There’s some excellent TastyTrade video segments on the topic. It’s the slow & steady approach, but trust me… it can be very lucrative, if done mechanically.
Max gain per contract would be $86 (minus fees). Max loss would be $11,914 if you got the stock put to you and it went to 0. One could buy a protective put below the short 120 put (making it a put credit spread) and reduce the max loss, but also reducing the max profit.
One of the main reasons that I sell options instead of buying options is because I don’t have to predict direction, only trade based on range probabilities. There’s some excellent TastyTrade video segments on the topic. It’s the slow & steady approach, but trust me… it can be very lucrative, if done mechanically.
Posted on 12/22/22 at 4:38 pm to Jag_Warrior
That 12/30 120 strike TSLA put that was .86/contract at the close yesterday and was at an approximate 12.5 delta is now a 35 delta, going for about 3.95.
Can be tricky to try to catch these falling knives, with equities or options.
Can be tricky to try to catch these falling knives, with equities or options.
Posted on 12/22/22 at 9:51 pm to Jag_Warrior
Yeah if you're short puts on a falling knife like tsla, there's really no hiding. You're going to lose money, it's just a matter of mitigating the loss.
Posted on 12/26/22 at 8:52 pm to Jag_Warrior
I don’t have the capitol in that account right now to do much other than buy and sell calls and puts. My standard bet is right around 1K, keeps it simple for me. If/when I get on a roll I’ll bump that up and start pulling buy in and riding the rest when I feel good about my position. Easing back in right now and so far got no reason to complain. Nice thread with some good food for thinking about future options, no pun intended
Posted on 12/27/22 at 10:24 am to LSUtoOmaha
quote:
Yeah if you're short puts on a falling knife like tsla, there's really no hiding. You're going to lose money, it's just a matter of mitigating the loss.
Absolutely. The 12/30 120 strike TSLA put I used in that example is now well in the money (stock trading at 112.75 right now) and that short put is trading at 9.10. It’s been a falling sword!
Posted on 12/28/22 at 10:28 am to Jag_Warrior
Added some covered calls on longer term SPY stock I have. One year expiration at 410 strike. I see the next year as range bound and am looking to generate some yield without selling the index. Break even on the options is around 434. So looking at about 5% yield, the tradeoff of course being capping upside on the SPY if it takes off.
Posted on 12/28/22 at 4:09 pm to LSUtoOmaha
quote:
the tradeoff of course being capping upside on the SPY if it takes off.
*sung to the tune from Rawhide*
Roll ‘em, roll ‘em, roll ‘em. Keep them options rollin’
I’m tip toeing for the next week or so with trades. So far, my SPX iron condors that expire this week look fine. Should close them all… but you know, greed.
I only have a few small positions expiring next week: some CRWD covered calls and the TSLA 83 strike puts I sold today. I’ll be on vacation and don’t want to spoil the time off by having to watch any screens.
Posted on 12/29/22 at 9:31 am to Jag_Warrior
The IV on TSLA is 100+% right now on the short duration expirations. I couldn't help myself so I sold some REALLY wide iron condors at the 10-15 deltas on either side. This was on the weekly expiring next Friday. It still brings $100+ per contract even that far out of the money.
Posted on 12/29/22 at 9:38 am to Jag_Warrior
quote:
TSLA 83 strike puts I sold today
What premium did you get for these?
Posted on 12/29/22 at 1:12 pm to LSUtoOmaha
.56 for those.
Posted on 12/29/22 at 1:23 pm to dragginass
quote:
I sold some REALLY wide iron condors at the 10-15 deltas on either side.
Yeah, that IV was too much to resist. I pondered doing a jade lizard (with the net premium covering the short call side spread), but just went with short puts. You got some nice premium on yours.
Posted on 1/3/23 at 8:17 pm to Jag_Warrior
My closing order on TSLA (to take 50% profit) went through at market open. I went ahead and sold more iron condors after the stock leveled off from this mornings drop, but 14 DTE this time.
Posted on 1/4/23 at 10:40 am to dragginass
You’re doing delta neutral iron condors on TSLA or skewed one way or the other? After the pounding it took yesterday, I’d say that you’re getting some healthy premiums on that trade. I agree with doing 14 DTE. Gives you some wiggle room time, just in case Elon takes a notion to go jogging in Central Park in his underwear.
I’ve still got the 83 strike puts expiring this Friday. I’ll look to put some option trades on TSLA going into 1/25 earnings. For now, just hanging onto some short SPX puts and CRWD covered calls. Trying not to look at much while I’m on vacation.
I’ve still got the 83 strike puts expiring this Friday. I’ll look to put some option trades on TSLA going into 1/25 earnings. For now, just hanging onto some short SPX puts and CRWD covered calls. Trying not to look at much while I’m on vacation.
Posted on 1/4/23 at 12:39 pm to Jag_Warrior
I skewed it very slightly bearish, as I tend to do with most of my iron condors recently. The stock had already been hammered down in the morning before my entry.
Posted on 1/7/23 at 11:22 am to dragginass
TSLA made a nice recovery off the Friday low. But with the IV still very high, I agree that a wide iron condor still has good profit potential, IMO.
My naked short puts expired worthless yesterday, so I’ll be going back to the well again for a short term trade before earnings.
Being that I was out of town, I just put on some light SPX trades this past week. All those expired worthless. Back to the grind this coming week with heavier trades and hopefully enough IV to make short SPX option strategies worth the risk. Probably look at synthetic strangles there.
My naked short puts expired worthless yesterday, so I’ll be going back to the well again for a short term trade before earnings.
Being that I was out of town, I just put on some light SPX trades this past week. All those expired worthless. Back to the grind this coming week with heavier trades and hopefully enough IV to make short SPX option strategies worth the risk. Probably look at synthetic strangles there.
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