re: Options Trading Thread

If someone is willing to school me on adjustments I’d love to break even and exit on ABNB credit spread if at all possible.
117/118 5/12 expiry

Sold three around .23 as an earnings play thinking that I had given myself enough downside protection.

I'm in for 5/19s
$93 - $111 iron condor

You should be good there. I don't think the 93 gets tested but if it goes in the money I'd consider opening a stock position at sub 93 if you have the purchasing power.

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Anyone got an expected move on HD?

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For the 5/19 expiration, as of right now (with the stock at 285.90), the expected move is +/- 15.05.

ETA: Looks like HD reports *before the bell* on 5/16.

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And there goes DIS right to 93. Bayou how much in credit did you get total for the IC?

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88 bucks total.
.22 per

I have until 5/19...

Closed ABNB for 1.00 each. Ouch.
Because of that, I'd really like DIS to be a real winner...

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Because of that, I'd really like DIS to be a real winner...

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Your short puts don’t expire until 5/19, right? I know you’d rather not hold shares, so hopefully it’ll pop back to 93 by then. I’m not suggesting that you do this, but are you thinking about wheeling it if you get assigned?

Off the 5 call spread x 3 naked puts DIS jade lizard that I sold, I’m now a (not so) happy Mouse House shareholder at 95/share. Disney’s move after earnings was obviously outside the expected range. So in the aftermath, I sold (technically) naked 5/12 calls on Thursday, even before the assignment. And also sold some more (technically) naked calls yesterday afternoon for 5/19. With the price action and down volume late in the week, I didn’t see much of a probability that I wouldn’t get assigned at 95, so I made those naked call trades to pick up some extra credits.

With all that said, I’m content to hold DIS for a little while and continue selling calls against it. It being a “real” company, I don’t have major worries about it.

Wishing you good luck on your DIS puts.

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I know you’d rather not hold shares, so hopefully it’ll pop back to 93 by then. I’m not suggesting that you do this, but are you thinking about wheeling it if you get assigned?

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Unfortunately I don't have the account size to hold or wheel. Fortunately, we could see 93+ again...

My HD spread seems to have worked out after earnings for now... I'm short the $270.

Of interest…
Long IC on FL?

JAG...

How you doing with AMZN?

My flips of selling calls and puts have been pretty damn good!

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Low VIX ruins those opportunities. Adapting and pressing forward.

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Please elaborate if you have the time.

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I’ll let Brobocop answer when he comes back. But essentially it’s the same situation we all face with selling premium; when IV is down, you get less premium for the same amount of risk. It’s why we sell options when IV gets elevated just before an earnings announcement and close (or let expire) our positions after the IV crush after earnings come out.

My mainstay continues to be 45+/- DTE SPX trades. But I’ve also been selling fairly large lots of 1DTE SPX options (usually synthetic strangles/very wide wing iron condors). The only reason that this has worked well for me is because the market has been tightly range bound lately. I’ve been challenged a few times trying to scalp 0DTE trades, so I’ve largely stopped playing with those. We haven’t had a 2 standard deviation move in quite awhile. My short strikes are typically protected up to a 1.5 standard deviation move. And my daily profit target on the buying power being used is 1-1.5%. I realize that at some point, IV is going to expand off this lowly 17.4% level (5% IV percentile says the Doberman is just waiting to catch the complacent cat/Jaguar ) and I’ll be scrambling to get out of the yard.