re: Options Trading Thread

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Have you taken a look at TTD? I like the company so may play a 10 delta or so.

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I didn’t catch that one for today. 67.7 IV and a decent 44% IV percentile - expected move of 9.17. Yeah, I’ll likely go for that one instead of doing anything with WYNN. Thank you.

I have been watching Tasty Trades videos on YouTube. They are very informative for options selling.

I took the short put trade on TTD at the 68 strike. Thanks again. As a filler trade, I (somehow) convinced myself to also take WYNN short puts at 94 (15 delta). Right now, they both look OK.

Jag- one thing that bothers me is how rolling positions down is presented. Rolling can certainly make sense as a capital efficient strategy, but it's not a free lunch and can keep you in something when it's time to cut losses and move on. I feel like it's often implied as some fool-proof thing

Nice trade

In my case, I’m always net short. My only long option positions are when I sell spreads, like in the case of SPX (where even one pure strangle wouldn’t be practical - so I do these WIDE wing spreads that are effectively “synthetic” strangles) or something like jade lizards or iron condors.

I go for option trades where the probability of profit is heavily in my favor. I’ve seen serious money or profit % made by people (like Thatguy777) who take debit trades, but I don’t trust my predictive skills enough to be consistently profitable. And this year, my “win rate” is something over 97%. I can be completely wrong on direction, but as long as I’m right on the range (using deltas and technicals), I “win”.

Yes, 8/11 exp. I like your explanation above on shorts. I have played options for nearly 20 years on & off but mostly on the long side and am actually a terrible predicator which is why I am now more interested in calculated plays where direction is less important. The appeal of the long call was always the big chance of a large pay day (and the not so great appeal of when the stock goes the other direction), but small wins I am finding are much less stressful!

I still play long options sometimes, but it's typically before earnings plays where there is often a swell in implied volatility

One huge difference is that SPX is cash settled, there is no assignment. I don't trade on margin at this point, and I don't trade naked either. That will change, but there is too much risk (for me) to trade naked in the low IV environment. So with that said, I trade short premium spreads only. Buying power is only ever the width of the spread, less the credit received.

If you are in learning mode (as I am), I strongly suggest sticking to defined risk, short premium trades. Tasty and OA, the 2 think tanks I trust, are both aligned on that methodology.