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re: Options Trading Thread
Posted on 6/26/23 at 11:27 pm to Jag_Warrior
Posted on 6/26/23 at 11:27 pm to Jag_Warrior
For anyone old enough to remember Hill Street Blues and Sgt. Phil Esterhaus‘ parting words at the end of roll call: Let’s be careful out there.
quote:
Reuters June 26, 2023 10:35 PM
While equity gyrations have on the whole been muted, with the Cboe Volatility Index (.VIX) falling to a three-year low last week, some market participants expect a measure of turbulence in coming days.
"There might be little bit of noise," said Michael Purves, chief executive officer at Tallbacken Capital Advisors. "The rest of the week is going to be choppy and weird and probably not that significant in terms of signaling broader trends."
1
Posted on 6/27/23 at 3:11 pm to Jag_Warrior
Options Selling Update for me:
Trades: 20
Short Leg Expired Worthless: 13
Short Leg Assigned: 2
Outstanding Trades: 5
Total Risked (Spread widths minus premium)= $25,000
Total PNL= $1,050
Premium ROI: ~4.05%
Median Delta has been around 0.11 so things are going more or less as expected. I have played one ticker in particular six or seven times (though not doubling down). The two assignments I was also able to sell out of for a small profit the next day.
Also of note, the max I have had at risk at any given time has not exceeded $5,000, so the turnover is pretty quick.
Trades: 20
Short Leg Expired Worthless: 13
Short Leg Assigned: 2
Outstanding Trades: 5
Total Risked (Spread widths minus premium)= $25,000
Total PNL= $1,050
Premium ROI: ~4.05%
Median Delta has been around 0.11 so things are going more or less as expected. I have played one ticker in particular six or seven times (though not doubling down). The two assignments I was also able to sell out of for a small profit the next day.
Also of note, the max I have had at risk at any given time has not exceeded $5,000, so the turnover is pretty quick.
This post was edited on 6/27/23 at 3:13 pm
Posted on 6/27/23 at 6:22 pm to LSUtoOmaha
You’ll have to remind me how the system works. Are these 45+/- DTE trades that you take off around 21 days or so?
Posted on 6/27/23 at 6:50 pm to Jag_Warrior
No sir. These are 4-30 day sold DTE spreads on names I already own or wouldn't mind owning more of. Most of the money in this account is in SPY. If assigned, sales of SPY fund it.
Posted on 6/27/23 at 8:57 pm to LSUtoOmaha
Ah, gotcha.
Posted on 6/27/23 at 9:13 pm to Jag_Warrior
Maybe I should try venturing out to the 45 day expiration. I know that's statistically where the sweet spot is.
Posted on 6/27/23 at 10:05 pm to LSUtoOmaha
It is, but if the system that you’re using fits your style, I’d keep using that. But also nothing wrong with trying small 45DTE trades to see how they suit you.
With this low IV environment, it’s become difficult to find those standard short premium trades that should be our bread and butter.
With this low IV environment, it’s become difficult to find those standard short premium trades that should be our bread and butter.
Posted on 6/27/23 at 10:15 pm to Jag_Warrior
Yep. That is one reason I've been hitting a couple names over and over again, especially PARA. IV has been a lot better than most
Posted on 6/28/23 at 9:09 pm to LSUtoOmaha
NKE is on deck with earnings tomorrow after the bell. Currently sitting at 38.72% IV and 44% IV percentile of a 113.03 close today. Anyone playing this one… and how?
I’m looking at constructing a 2x3 jade lizard (2 naked puts and 3 call spreads), depending on price action and what happens with IV before the close.
I’m looking at constructing a 2x3 jade lizard (2 naked puts and 3 call spreads), depending on price action and what happens with IV before the close.
Posted on 6/28/23 at 9:56 pm to Jag_Warrior
I like it. Thanks for bringing up NKE: I may sell the 101/80 July 7th spread. If I can get $50 premium that would be 2.4% ROI on spread risk for 8 days on a 10 short leg delta. Worst case is I own Nike at a discount
Posted on 6/29/23 at 9:10 am to LSUtoOmaha
Ended up selling the 102/85 put spread for $54. 3.2% ROI, expires July 7th. If NKE tanks I'll take assignment from the short leg.
Posted on 6/29/23 at 3:41 pm to LSUtoOmaha
On NKE, I wound up with a 2x5 jade lizard: 2 naked puts @ 102 and 5 124/129 call spreads, all expiring 6/30. Each side was around the 10 delta when entered.
Slight negative reaction to earnings so far. In AH, the stock is 111.65 - down a couple of bucks from the 113.37 close.
Slight negative reaction to earnings so far. In AH, the stock is 111.65 - down a couple of bucks from the 113.37 close.
Posted on 6/29/23 at 3:42 pm to Jag_Warrior
Nice trade. How much did those 124/129 spreads credit you a piece?
Posted on 6/29/23 at 4:17 pm to LSUtoOmaha
I only got .30/spread for the call side and .27 for the short puts. I could have gone closer to 15 delta on the short calls, but with that wide a spread, I decided not to chance it. Like you, I was content to take stock at 102.
This post was edited on 6/29/23 at 4:28 pm
Posted on 7/1/23 at 10:16 am to Jag_Warrior
NKE held the line after earnings… always nice to see short options expire and turn to dust at 4:01PM.
We’ve made it to the end of the quarter and through half the year. Hopefully everyone has had a good trading year so far. Most of my options activity has been centered around SPX this year. And most of that has been centered around 0-1DTE trades. Measuring returns by the capital at risk method (with the same capital “recycled” and used again within 24 hours), I’m looking at a 55.79% gain against capital at risk/buying power reduction, or 110.58% annualized.
As IV decreased through the year, I was unable to deploy as much account capital toward trades. So I feel like those are acceptable returns, especially considering that I never exceeded 5 delta on the short option side of these trades, and I almost always let the trades run to expiration.
Hoping that everyone else in this thread had the returns you were seeking too.
We’ve made it to the end of the quarter and through half the year. Hopefully everyone has had a good trading year so far. Most of my options activity has been centered around SPX this year. And most of that has been centered around 0-1DTE trades. Measuring returns by the capital at risk method (with the same capital “recycled” and used again within 24 hours), I’m looking at a 55.79% gain against capital at risk/buying power reduction, or 110.58% annualized.
As IV decreased through the year, I was unable to deploy as much account capital toward trades. So I feel like those are acceptable returns, especially considering that I never exceeded 5 delta on the short option side of these trades, and I almost always let the trades run to expiration.
Hoping that everyone else in this thread had the returns you were seeking too.
Posted on 7/2/23 at 11:33 pm to Jag_Warrior
mmmm.. TSLA beat expectations.. Tomorrow may be fun!
My longs gonna go nuts! :)
quote:
Tesla Q2 deliveries easily top estimates as price cuts take effect
quote:
For the quarter, Tesla reported global production of 479,700 units with deliveries of 466,140. The delivery figure easily topped Wall Street consensus estimates of 448,599 units, as well as the prior quarter’s total of 422,875. Both production and delivery totals for the second quarter were all-time records for Tesla.
My longs gonna go nuts! :)
Posted on 7/5/23 at 3:14 pm to Jag_Warrior
It's been a winning first half of the year, and an informative one.
Side note: Today I sold a DE put spread, expiring 7/14. 385/355 paying .57, so 1.96% return on risk. Will let the stock be assigned if we nuke.
Side note: Today I sold a DE put spread, expiring 7/14. 385/355 paying .57, so 1.96% return on risk. Will let the stock be assigned if we nuke.
Posted on 7/11/23 at 12:15 pm to LSUtoOmaha
Sold some Google put spreads today, expiring July 28th. It's been a very solid few weeks.
Posted on 7/12/23 at 7:45 am to LSUtoOmaha
IV on GOOG is decent enough at 34 to give acceptable premium. One thing to keep an eye on is the earnings date is July 25th.
I wasn’t very active last week because some outside activities kept me away from the screens. But back to hitting SPX 0-1DTE short premium trades heavy this week (usually legging into calls up top and puts down below). The lower than expected CPI report this morning may challenge my calls that expire today, but we’ll see.
One thing to keep an eye on is the earnings date is July 25th. I wasn’t very active last week because some outside activities kept me away from the screens. But back to hitting SPX 0-1DTE short premium trades heavy this week (usually legging into calls up top and puts down below). The lower than expected CPI report this morning may challenge my calls that expire today, but we’ll see.
Posted on 7/12/23 at 9:38 am to Jag_Warrior
Let us know how the SPX short term trades work.
I'm happy to let Google ride through earnings, don't mind owning below $107 at all.
I'm happy to let Google ride through earnings, don't mind owning below $107 at all.
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