re: Options Trading Thread

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How are you doing with 0 DTEs?

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They are definitely, as someone put it, like holding a hand grenade. Beginning December and 1st week in January got absolutely destroyed, once because I learned a valuable lesson that just accepting the loss of the spread is much better rather than rolling up to a larger spread which can get out of control. Especially when market goes on multi day run up. January hit was because I moved deltas up and market got out of std, dev. range. Lately playing around .16 deltas very late morning in NDX as credits are higher.

Yes chasing a small credit can be very costly. When I first started 0 DTE's I made the big mistake of presuming my max risk wasn't the full spread (i.e. 5 or 10 wide x 100) but rather it could be managed by rolling for credit and eventually expiring worthless, however as I learned the hard way this is not as easy as "how to video's" would make it seem because have to take the roll early enough to get a decent credit or near zero debit and before you know it can snowball into a larger strike width for same premium. After my big loss in the 1st week of December (where I made some novice mistakes like clicking the wrong expiration date and rolling with wide strike - 15 or 20 plus bull run) I started trading positions assuming I would not roll and accept the loss if it moved outside that range. This happened at end of 1st week of Jan and was due to getting very aggressive on deltas late day and market moving in last hour.

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Are you taking narrow strikes now?

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Yes, I am taking normally 5 wide in SPX and 10 wide on NDX (like NDX b/c premiums are a bit higher but have to deal with more intraday price movement).

Today is going to be one of those days were I take a small loss if SPX does come back down late day.

Anyone playing the NFLX earnings after the bell? I might sell some way otm put spreads

Just sold 8 call contracts. Nice premiums on those bad boys

Did you buy any junk calls to define risk?

If you don’t mind me asking, what are your strikes and expirations?

I never opened the call spread I was eyeing.

I thought the IRBT puts were better for me.

Nice trade of IRBT

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I ended up selling the 410/400 put spreads on NFLX. No sweat

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You should be ashamed of yourself. Here I was today sweating like Patrick Ewing in the 4th quarter vs. Michael Jordan while the S&P500 was toying with my 4910 0DTE short calls - the intraday top was 4903.68. But I was then able to slap on 4855 short puts to even the trade out.

Seriously though, that NFLX trade was a good one. I didn't get that one. But in an investment account, I went with 1/26 short puts on TSLA at 177.50 and 175 strikes. Still have some short puts on CBOE (180 strike) and XOM (93 strike) expiring this Friday. With the VIX at least back above 13, next week will hopefully be better hunting during earnings season.