re: Options Trading Thread

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also bought GOOG 1/20/23 102.5c

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Depending on when you bought them (post earnings vol crush is the best time), I honestly don’t think that’s a bad play. If I get tagged with GOOG on those 93 short puts on Friday, I won’t cry about it. I’m OK with that price. And I’ll sell calls against it til it goes away, hopefully with a healthy profit.

I don't normally sell for earnings, but I sold META calls. Will sell puts in the morning.

Bought then post earnings at $4.60, thought it would have rebounded better than that. Jokes on me, should have waited till the end of the day.

At least the NVDA call I have will be printing tomorrow, that’s if they don’t destroy it PM

The main driver of me wanting it was the fact that the old drunk hag pelosi recently bought 20k shares of GOOG. So there has to be something coming down the pipe.

When I started watching the option it was 8.55 per contract. I watched it go over $10 and then figured I’d give it more time. Thankfully.

I don’t see GOOG going anywhere. All the bears love that the earnings missed, but google will be around a long time to come

I only do CC's and cash covered puts. It has been rewarding for the most part.

Yeah the mechanics of selling covered is pretty simple. The optimization, tax implications and chaining together the sales replenishing exercised shares, not so much. I’ve been a pretty passive investor, for the most part, my whole career. About 50%, fairly solid dividend payers that I’ve been buying and holding since I started and the other 50% in and out of funds or individuals when I can see the M&Ms playing games. I’m getting close to living off gains while preserving capitol so I need a mental shift to start happening

I mean if it were me I'd probably wait, especially after a day like today that AAPL is having

id probably sell before next earnings

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The optimization, tax implications and chaining together the sales replenishing exercised shares, not so much.

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Which platform do you use? At least on TD Ameritrade, you can identify specific lots using the FIFO (first in, first out) or LIFO identifiers. And you can change them, as you need to. I do that ahead of time to see what my cost basis is on various lots.

But yes, I see what you’re saying. Short options typically generate short term gains. As for optimizing, on more complex strategies, I employ deltas and IV as the primary basis… and of course balancing risk/reward. On covered calls, it really just comes down to what strike you’d be content to let the stock go, should the option go in the money. Option price will just be a function of underlying price vs strike, time and IV (for the most part) and the other Greek bros.

But please don’t think that I’m encouraging you, or anyone, to go into an area where you wouldn’t be comfortable. Just throwing out an idea for possible exploration.

My 401k thru the company is with Merrill, it’s also got Roth and free cash. It’s where the big holdings are. I’m gonna check out what I have available to do.

I’ve got an ETrade that I option traded in for few years and still do occasional swing trades but it’s gotten raided for fun money so it doesn’t have enough to do much. Maybe sell some cash covered puts to get started and practice up