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re: Options Trading Thread
Posted on 10/11/23 at 8:27 pm to LSUtoOmaha
Posted on 10/11/23 at 8:27 pm to LSUtoOmaha
quote:
Then if we get a second spike on top of the first, I'll open a short call spread with near strike atm but this time, an expiration of two months out.
At a similar width?
1
Posted on 10/11/23 at 8:35 pm to BourbonDad
quote:
How many contracts is your average short position on the 0-1DTE vs others?
It depends on how much capital I can risk (based on current IV) and whether I’m doing a 0DTE or holding overnight with a 1DTE. But usually 30 to 50. If the market is bouncy, I’ll typically plan my max and attempt to ladder in 10 or 20 lot increments. Today I put on a single 50 lot of SPVs at -5 delta. I just happened to hit near the low for the session in the SPX, so they started dropping shortly after my order executed.
Once one side is completed, I usually like to put on the opposite side to make it a more neutral trade (since it doesn’t affect my buying power reduction). But I wasn’t able to do that today because I had other commitments that tied me up.
Posted on 10/11/23 at 9:00 pm to LSUtoOmaha
quote:
Once I'm back at work (just had second child)
Big congratulations!
Posted on 10/11/23 at 9:03 pm to LSUTIGERS74
Yep, similar $10 ish width
Thanks Jag
Thanks Jag
Posted on 10/11/23 at 10:22 pm to LSUTIGERS74
Correct. I don’t do that on 0DTEs though, not enough time. What I meant by gamma in your favor is gamma is highest ATM. So selling spread fully ITM means if it goes further ITM, gamma decreases. So while yes that means the trade is going against you, it’s going against you less quickly than shorting the spread that isn’t fully ITM. It’s more forgiving. I typically only long 0DTEs on indices if I even do in the first place. For equities if I’m selling 0DTE it’s basically naked with only a few hours left and needs to be a good setup. For core swing trades I’d rather buy or short the underlying for directional bias and long an OTM put or call as protection.
This post was edited on 10/11/23 at 10:25 pm
Posted on 10/11/23 at 10:27 pm to Jag_Warrior
Gotcha sounds like you prefer to sell higher qty of low delta short dated OTM spreads.
Posted on 10/12/23 at 7:55 am to BourbonDad
Yes, that’s pretty much it. Ideally I prefer to construct my SPX ICs to be as close to strangles as possible/practical. Very high POP and quick return of BPR… rinse & repeat 3-5 times per week.
This post was edited on 10/12/23 at 7:58 am
Posted on 10/12/23 at 3:53 pm to Jag_Warrior
Gotcha that makes sense. Yesterday and today were a grade A+ muah perfect setup for me. Sold TSLA 260/265 Tuesday and 270/275 call spreads yesterday. All went to near zero today like I planned. Beautiful rug pull at noon. Shorted some NQ the way down then rode long back up.
Posted on 10/12/23 at 6:47 pm to BourbonDad
quote:
BourbonDad
I think I now understand your trading setup based on comments yesterday describing how you take long side at the money as was Tuesday with 265 and short side in money at 260 to get as high as premium credit (other than expiring in a few days at max loss, is there risk of assignment on short side?). Instead of covering short and keeping long you then took another spread higher in similar manner and waited for the reversal, which happened today. Finally makes a bit of sense.
By NQ you mean Nasdaq NDX?
Posted on 10/12/23 at 10:02 pm to LSUTIGERS74
Bingo and by NQ I meant the literal NQ futures contracts like NQZ23. I typically day trade futures and swing trade options preferably SPX or index futures options for the tax advantage but also short equity options too, whatever has better IV and RR.
Posted on 10/13/23 at 10:55 am to BourbonDad
If any of you are looking to try out UVXY, today is a great day
Posted on 10/16/23 at 8:56 am to LSUtoOmaha
Anyone looking at UAL for earnings play? IV ~50, IV% ~40
premiums mediocre at moment, earnings tomorrow before market
premiums mediocre at moment, earnings tomorrow before market
Posted on 10/16/23 at 1:04 pm to LSUTIGERS74
Also made a small IC on Goldman with tomorrow mornings earnings call.
Posted on 10/16/23 at 7:33 pm to LSUTIGERS74
Didn’t go for UAL. I did short puts on SCHW for this morning (already turned to dust) and BAC for 10/17 pre-market - all short puts from 16 to 25 delta on BAC.
Was busy with another obligation, but managed to unload some low delta 0DTE SPVs on SPX around 2PM.
Was busy with another obligation, but managed to unload some low delta 0DTE SPVs on SPX around 2PM.
This post was edited on 10/16/23 at 7:35 pm
Posted on 10/16/23 at 8:00 pm to Jag_Warrior
Ended up waiting on UAL but did take the IC on GS 10/23, SCV on MSFT 11/17 and SPV on Roki 11/17
Also same on some 0DTE SPX’s SPV and SCV today
The MSFT and ROKU trades came from Tasty live feed so will give them a try
Also same on some 0DTE SPX’s SPV and SCV today
The MSFT and ROKU trades came from Tasty live feed so will give them a try
Posted on 10/16/23 at 8:04 pm to LSUTIGERS74
BourbonDad, when playing /NQ are you typically playing 60 DTE (or any index future)? Also are these trades directional and are you basing them on points of resistance and support throughout the day, where you may have multiple entries and exits?Apologies on questions just trying to learn the basics of the trading strategy.
Posted on 10/16/23 at 8:13 pm to LSUTIGERS74
I love those tasty live feed trades
Posted on 10/16/23 at 8:22 pm to LSUtoOmaha
UVXY absolutely crushed today
Posted on 10/16/23 at 8:45 pm to LSUtoOmaha
quote:
UVXY absolutely crushed today
Wish I could have gotten in the trade on spike friday as you suggested, got busy and didn’t get to make the trade. Did look at it today and saw the drop, had instant regret..next time. Congrats on the win
Posted on 10/16/23 at 9:05 pm to LSUTIGERS74
Thanks, I'll keep posting when I think there are trade worthy spikes on it. Most of my contracts are a few months out
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