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re: Options Trading Thread

Posted on 4/28/23 at 7:13 pm to
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 4/28/23 at 7:13 pm to
How wide is the spread? And how does a put spread end in assignment?
I thought there was a max loss/defined risk.

Closed GIS bear debit spread for 14% that I put on earlier this week.
Took on a KO iron condor and a MSFT bear debit spread toward the end of the day. Don’t feel great about either, but I finished the week with realized profits on 6 of 6.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 4/28/23 at 9:37 pm to
Well, a spread is just a sold put, and a bought put. The bought put I could sell, and then I'd let the sold put exercise. The spread is like $10 I think.

Anyways, it is risk defined, but I have the option of being converted to a shareholder on the sold puts.
Posted by Jag_Warrior
Virginia
Member since May 2015
4120 posts
Posted on 4/29/23 at 12:12 pm to
quote:

How wide is the spread? And how does a put spread end in assignment? I thought there was a max loss/defined risk.


That’s something (assignment risk) you need to be aware of if you ever run something to expiration or if your short option on a spread goes deep in the money: with American-style options, a short position can be assigned to you at any time.
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 5/1/23 at 11:26 am to
Is it safe to say that this KO iron condor is moving against me? Bought Apr. 28th

Should I go ahead and adjust so soon?

6/16 $60-65
Credit: .75
Currently it's at $1
This post was edited on 5/1/23 at 11:27 am
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/1/23 at 3:27 pm to
quote:

ON sold 5/5 puts 0.11 delta (62p). Stock currently between 69 and 70

Trying to get into ANET as well


ON is an easy win. ANET should be a win as well based on earnings reaction (shorted the 140p on a spread).

I'll try for AMD tomorrow.
Posted by ChiGator
Member since Nov 2020
3278 posts
Posted on 5/1/23 at 5:48 pm to
I bought some long dated put options with an expiration in September on BUD. Bud Light sales were down almost 30% last week. Sales of Ultra and Busch Lt either flat or down. Summer selling season is coming and if their flagship brand keeps getting smoked like this, they’re going to be in for a world of hurt on upcoming earnings. These huge declines are not even close to baked into their stock price right now.
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 5/1/23 at 6:38 pm to
Do you have a target % gains before exiting?

I like the play, but I might go more conservative with a call credit spread.
This post was edited on 5/1/23 at 6:39 pm
Posted by ChiGator
Member since Nov 2020
3278 posts
Posted on 5/1/23 at 7:52 pm to
I bought at 55 expiration 9/15. Their 52w low is 44.51. I see no reason they can’t test that over the next 6 months.
Posted by BeYou
DFW
Member since Oct 2012
6026 posts
Posted on 5/1/23 at 8:22 pm to
quote:

Added $UBER May $32.50 Calls to the portfolio today. The think the company sets up well from a technical standpoint and the option flow has been bullish lately.


Debated closing this out today for a small gain after the big run up the past couple of days but decided to hold through earnings. Uber reports tomorrow before market.
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/1/23 at 8:39 pm to
Good luck. Thought about selling puts before close but didn't pull the trigger
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/2/23 at 10:29 am to
Whew. Taking a beating on ANET now. May have to take assignment.
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 5/2/23 at 12:45 pm to
Sweating it out today with QQQ ICs expiring today.
Looked great this morning and catastrophic a few hours ago.
I'm cautiously optimistic that I may break even before close.

I hope SBUX delivers AH.
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 5/2/23 at 1:17 pm to
quote:

I'll try for AMD tomorrow.

I'm in for a directional play, but gave some room up to 5/19.
Put credit spread
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/2/23 at 1:27 pm to
Same but weekly for me. I am short the 81
Posted by BeYou
DFW
Member since Oct 2012
6026 posts
Posted on 5/2/23 at 10:40 pm to
Closed out my Uber May 32.5 calls today for a 118% gain.
Posted by bayoubengals88
LA
Member since Sep 2007
18973 posts
Posted on 5/3/23 at 8:17 am to
quote:

I'm in for a directional play, but gave some room up to 5/19.

I'm gonna need that room.
85.38 breakeven
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/3/23 at 8:19 am to
Yep. Not a good quarter from them
Posted by Jag_Warrior
Virginia
Member since May 2015
4120 posts
Posted on 5/3/23 at 4:52 pm to
quote:

Same but weekly for me. I am short the 81


So am I. Short the 5/5 81 naked puts. Feeling like we might get to own some AMD this week.

And sold a 12 lot of 5/3 SPX put spreads (4030 short puts) this morning standing in front of the NASDAQ Market Site. Had to do it.
Posted by Jag_Warrior
Virginia
Member since May 2015
4120 posts
Posted on 5/3/23 at 4:53 pm to
quote:

Closed out my Uber May 32.5 calls today for a 118% gain.


Sweet!
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26581 posts
Posted on 5/3/23 at 7:55 pm to
If assigned, are you going to sell calls against it? I think I will if IV stays high. The May 26th 87 call (29 delta) pays 1.45 or so.
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