re: Options Trading Thread

I am at the 222.5p so even closer

Assuming you are bullish on Dollar General based on thrift shoppers seeking better deals than Target?

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SPX 4435/4425 trade and thought well its trading sideways and only an hour left, learned a quick lesson as I had to roll out the trade till tomorrow expiration but luckily filled with a credit but wish I would have rolled with a lower range as now sitting near the money for tomorrow

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Did you get that rolled trade closed out when the S&P popped earlier today? For the first time in a long time, I tapped out early on a 0DTE SPX trade. I fell out of love with my setup going into the FOMC. I took a small profit on 4390 SPVs and waited til after the meeting to put on 4380 SPVs. The market just took a leg down, so that was right for my risk/reward today.

Also, nice play by you and Omaha on TGT. I just got an execution on a 8/18 short put on WMT at 152.50. I’m willing to own it in my IRA at that price. I also sold a couple of puts on DFS for the 85 strike for 8/18. That one continues to get hammered and I’m also willing to own it at that strike.

Anyone looking at AMAT for earnings trade (after close)?

Yes, was glad as well to get out unscathed. Yes took the 4395/4390 to expiration yesterday and took SPV 4370/4365 and SCV at 4450/4445 this morning but set a 50% close order on both while I had to run to a meeting. They closed for profit.

Will re-enter a position here shortly on something similar for remainder of day.

WMT ended up being a winner unless we get an implosion tomorrow.

Looks like we will be getting assigned TSLA

Yeah, I refuse to take a loss on TSLA, for better or worse

Also I did play AMAT lower strikes (cause I did not really trust it). Looks fine so far.

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I actually closed out of WMT this morning earlier since it was at 78% profit and I didn't want to risk it.

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Interesting, and not a bad play by any means, but I'm not sure I totally buy the gamma risk that everyone talks about. Don't get me wrong, there is ALWAYS risk when you have contract open, but I have not seen evidence in my trading that it is different at the margin. That may change and I may learn my lesson, but it would take several gamma blowups at this point for me to have been better off taking target profit on short trades.

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Thanks will check that strategy out, as haven't typically played a jade. Do you put a stop loss a few strikes out on the naked puts?

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Not usually. On naked puts, I try to stay with underlyings that I can take an assignment on, and then I’ll sell calls to exit the long position. If I can’t accept the assignment, I’ll make it an iron condor and have at least a mental stop.

I wasn’t able to get the jade lizard trade on. I got a call from the police about 1:45ET that one of my properties had been broken in to. I was racing up the interstate and dealing with the cops when I could/should have been entering some trades.

Thankfully my synthetic strangles (4435c/4355p) on SPX closed without too much drama. While the cop was taking pictures, I was busy watching the S&P take a late dive. Hope you made it out with full profit too.