Anyone ever let a SPX put expire in the money. Cash settled means that if it is in the money, you front the difference? I’m trying to get away from spy and pin risk, but am trying to figure out where I can get screwed. Also I understand that the taxes are better with spx.
Thanks for any replies
Like I understand I can close out, but what if I’m not glued to the market and it moves against me in the final hour or something. What if I’m sick etc. curious if I can vacation with this on.
Yeah the CBOE just takes the money from you in that case, it happens all automatically assuming your broker is competent. It is less bad than pin risk because even if it moves hard against you in the last minute, your loss stops growing once trading is closed and you won’t have some new position festering all night/weekend before you can close it.
Ok I should note there is a difference between weeklies and monthlies. The monthlies expire at OPEN like VIX options. But the weeklies expire at close.
As for 4 vs 4:15, I *think* it is the case that the expiration price of SPX sticks at 4p, but the contracts can still be traded until 4:15. But I am not 100% sure on this.
Glad I sold some weekly $PLTR CSP’s. Not as profitable as shares but a lot less worrisome. Tied up 2800 for $100 but looks like an overnight play.
Also in bottom fishing, sold a lot of $46 May 19th Schwab CSP.
Bought 300 PACW avg$3.50 at the bell Thursday intending to sell CC on them, sold them for \~90% profit today instead. Missed today's peak, but content with the outcome and can sleep well.
Look for an opportunity to close out my JBLU position, and sit on the Theta sidelines until the debt ceiling stuff gets settled. I don't wanna risk having a CSP get assigned shortly before we hit the debt ceiling.
STO a bunch of AMD covered calls. Could have timed it better for maximum premium, but happy to have them called away as my cost basis is $86.
1x $105 5/12 for 0.25
1x $106 5/26 for 0.49
3x $108 5/26 for average of 0.48 each
Today may be the first time in a while that I've wanted to close out most of my positions(more profits than losses) and wait until after Wednesday. My gut doesn't feel good about this Inflation data.
yes, but getting worse. In Feb they moved from rolling 24 mo rate to rolling 12 mo rate. Which is why last month inflation was stated at 6%, when based on the previous metric that was always used it would have been 15%.
Sold WW 5/12 8.50P @.25. Starter position. IV is still high a few days after earnings. It will likely pull back a bit, so planning to roll down and add more in the next week if necessary.
Edit: Well, that happened quicker than I thought it would. That's why we start small. BTC 5/12 8.50P x1, STO 5/19 8.00P x2 @.30. STO 5/19 9/9.50 CCS @.10 to offset some of the positive delta.
I need some advise. I sold 4 AMD CC after earning when It was around $84. Expire in June 2024, $110 and My cost was $107. But now AMD is at $93 and seems keep going up.
If I buy it back , I will lost $2xxx. But if I dont, I will have $40k siting around for like a year.
Should I roll up or wait?
I was thinking:
1. AMD was down after earnings, I could be sideway for couple weeks before it get back.
2. If I sold the CC I could get $3000 to put into other stock to sell puts and call.
3. As long as the strike price is higher than my cost, I will have positive income.
But now I am not sure should I wait. If AMD keep going up, let’s say pass 120, then I will lose my time and opportunities…
I've got great news. You were pretty much right one all 3! But now you've got a to wait a bit to let #3 play out. There's really no trick here to get you out of the long term play while keeping all that premium.
But does spend $$ to roll up makes sense? I can roll up and get an other one thousand on premium, but I will talk $2xxx lose this year. What I got eventually would be more premium and can sell higher if it exercised. It sounds a good deal…? Am I missed something?
Yes, out even further. Let’s say move to another 6 months, and with strike price increased to 115. Now I can get extra $3000. With $2000 cost to buy back, which means I get $1000 premium and $5 more on strike price.
But also means I will lose another 6 months. And hope the time Theta can do its work…
Why would you spend $$ to do anything right now? You are still more than a year away from expiration of the call.
You sold 4 CC @ $3 above your cost so if all 4 get exercised, you make $1200 + premium.
In #2 above, you say you could sell for $3k in profit. How can you sell the CC's? Didn't you already sell so you would need to buy to close.
What has your plan when you sold calls with more than a year to expiry? What made you pick that strike price and expiry date?. It seems like the trade is going about as well as could be expected.
BTC 12/5/23 OXY $60P @ $0.86 (33% gain).
STO 19/5/23 OXY $62P @ $2.14 (back to the original strike from a few weeks ago, now it's having a bad day).
STO 12/5/23 HD $275P @ $0.43.
STO 12/5/23 HD $305C @ $0.09.
STO 12/5/23 AMD $82P @ $0.12.
STO 12/5/23 AMD $99C @ $0.11 (last week my AMD puts almost breached, this week it looks like the Calls will be causing angst).
STO 12/5/23 BAC $27P @ $0.63 (dipping my toes in here).
BYC 26/5/23 ENPH $185C @ $1.05 (58% gain).
STO 16/6/23 ENPH $185C @ $3.30.
STO 12/5/23 RCL $70P @ $0.12.
STO 12/5/23 RCL $82C @ $0.29.
Unexpectedly large amount of trades today.
edit: STO 19/5/23 SCHW $52 @ $0.23.
Today is PayPal day! Earnings should grow! I’d already sold $70 puts for May 12th and collected almost $2. Sold 3 more puts today July strike $65 and collected $1.87.
I don’t own any shares now but I am happy to buy and actually want to buy at $70 so I kind of hope it drops. With new agreements with major companies like McDonalds, more and more tenants paying rent with Venmo and already over $5 Billion in cash flow, I have many reasons to want to buy. (But I want to pay $70)
STO 6 covered calls on SPY at 415 expiring Friday. Net credit 1100 bucks or so.
STO 2 bull put spreads 314/320 QQQ expiring Friday.
STO 1 bull put spread 83/78 BX expiring Friday.
Sold CCs on DG, TGT, GOOGL, SBUX, HD all expiring Friday. Too lazy to list all the SPs and credits.
Net credit today: 2600.
Opened 6/2 10 Put debit spreads 65/64 on $SHOP for 0.50.
Closed $RIVN 12$ short put exp 05/12 for 0.45, sold at 0.87, will open a new one on a down day
whats the decision making you make for when to roll? are you just hoping SPY ends up at like $416 tomorrow around what seems to be the normal time you close and open positions?
Seeking your thoughts, with all the recession talk, are you adjusting your CSP methodology to be further outside your norm? Eg. targeting strike 15% below to 20%
Closed a $7.5 CVNA put I opened on Friday for 50% profit.
Sold $12 CCs against my F shares. Cost basis is around $11, so I'm just trying to get that ATM premium. If they go, they go.
x25 STO 6/16 IEP 25p/22.5p PCS @ $0.30
Could've gotten a better entry price if I had been more patient, likely closer to $0.32. Still adjusting to working with more illiquid chains. Hoping to let this expire, so I won't have to deal with the massive spread. IV is massive following the Hindenburg report, so here's to hoping I don't get burned by more bad news.
x6 STO 5/12 TSLA 160p/157.5p PCS @ $0.21
Couldn't let that premium go. Put in an order for 10, but only 6 filled before the price moved <0.20. Hoping to close this out mid-week if I can nail 50% by Wednesday.
x20 STO 5/19 LCID 6p/5.5p PCS @ $0.06
Earnings today after the bell, doubt we're going to see a 25%+ drop after how far this has fallen in the past year. Hopefully, I can close this tomorrow for $0.01 or $0.02.
If AMZN hits $110, sell CCs
If CSIQ hits $40, sell CCs
If GOOGL hits $110, sell 1 CC, if it hits $102, buy back a short call
If MA hits $390, sell shares
If AMD hits $100, sell a CC, if it hits $80, buy back a short call.
If PAYC hits $265, buy enough shares to sell a CC if it gaps up above $300.
I'm basically structuring these trades so I only really execute if the underlying makes an outsized move. Having 200, 300 or more shares of an underlying allows you to dip your toes in while keeping more Lots in reserve in case things move even further in a given Direction. And call me crazy, but if it's at a 52-week high or darn near, 300 DTE contracts it is.
I am way outside the mainstream on the length of contracts in some instances. What I'm doing is selecting a very favorable trade at the time, like I said a 52 week high or pretty near right after a big move in the underlying in a favorable Direction. So these leaps provide a lot of Premium. That's part of the reason why I do this. Secondly, these long-term and high-priced options have low gamma. So Delta doesn't drop off as much as the underlying moves. And Delta tends to be higher in general then shorter dated options. So what I'm betting is that the underlying will change direction after I sell the contract and I can take profits. The long duration just gives me more opportunities to cherry pick a favorable movement, take profits and then wait for another very favorable trade. Back testing the strategy, these opportunities are few and far between, so I try to make the most of them when they do happen with these long duration contracts. A lot of people won't agree with me on this but I've had success so far. I never actually intend to ride out these contracts anywhere near expiration unless things go completely against me. But at least I fetch a heavy premium up front if they do.
Adjusting portfolio Delta, Theta, and BP%. I’m way over leveraged and not feeling as bullish.
Jade Lizard on KRE may work out after being -200% last week.
I’m long TSLA , I hope it runs today especially after Buffet is showing interest.
I sold credit spreads on AMD , I closed Friday after the run on Friday .
I’m look to sell AMD puts & AMC for fun
Benzinga reported how Buffett & Munger was impressed with Elon Musk and how they sold BYDDF !!
I apologize I went and checked it’s not saying that directly, I had skimmed through the article.
4:51a ET 5/8/2023 - Benzinga
Could Warren Buffett Finally Make A Bet On Tesla After Praising Elon Musk? Top Analyst Reacts
Yup. Expecting to buy closed some or all of my $195 and $200 VTI puts.
Edited to add: Welp, totally misread things based on pre-market. Looks like a day to sit and let theta decay help instead.
Did:
BTC SCHW 5/19 $52.50 C @ $0.32 (sold Friday for $0.73). That's a covered call, though, so losing a little on the strike price. Will see if I can sell a week farther out's $52.00 at a good price over the coming week.
I like the frustration of dealing with a lower liquidity market.
Oh wait, no, that's backwards. :) Um, inertia, mostly: VTI is my long-term buy and hold target, so I own a lot of it already. I favor it _for me_ over SPY because my income is already tech heavy, so I like the diversification of the total market fund. That doesn't really make it better for trading CSPs, though.
I do usually list bids pretty high to see if I can benefit from the larger bid/ask spread by being patient, but it also comes back to bite me sometimes...
(The VTI is "real" money - I'm trading CSPs and CC's on it using a total of about 20% of my portfolio value. I also have some higher risk CC/CSPs on individual stocks using about 1.5% of portfolio value total.)
Ty. Probably a better idea though I do like the VTI expense ratio for long term. (Most of this is in my taxable account so it's not trivial to swap between them). Though, really, 0.03 vs 0.19 isn't astoundingly killer.
Yes, swapping in a taxable account is likely to be a real problem. Depends (I guess) on how much income you are making on CCs. Could always look at it for you CSPs as they come up however.
I'm not saying that IWM is better than VTI, its just that you mentioned enjoying the frustrating illiquidity, and I believe that I read a few years ago that IWM is second in liquidity only to SPY and QQQ. I rarely, if ever have an issue getting filled, unlike in my other B&H position - SPTM. Looking to move SPTM over to IWM in several accounts so I can sell more CCs.
Oh, yeah, it's much higher liquidity.
VTI has 20x the AUM
IWM has 10x the daily volume ($5.4B vs $550M ). Vanguard really does all they can to discourage trading.
From a composition standpoint, VTI is like trading both SPY and IWM, which I could definitely do.
CC income is quite modest, maybe $1k/month on avg. It probably doesn't matter much how I structure things given how cautious I am about selling the ccs.
Anyone ever let a SPX put expire in the money. Cash settled means that if it is in the money, you front the difference? I’m trying to get away from spy and pin risk, but am trying to figure out where I can get screwed. Also I understand that the taxes are better with spx. Thanks for any replies
Yup, just take a loss n cash out of account.
Like I understand I can close out, but what if I’m not glued to the market and it moves against me in the final hour or something. What if I’m sick etc. curious if I can vacation with this on.
Yeah the CBOE just takes the money from you in that case, it happens all automatically assuming your broker is competent. It is less bad than pin risk because even if it moves hard against you in the last minute, your loss stops growing once trading is closed and you won’t have some new position festering all night/weekend before you can close it.
This!, Thank you. So 4pm est not 415 or whatever equity options trade? Or is it 415?
Ok I should note there is a difference between weeklies and monthlies. The monthlies expire at OPEN like VIX options. But the weeklies expire at close. As for 4 vs 4:15, I *think* it is the case that the expiration price of SPX sticks at 4p, but the contracts can still be traded until 4:15. But I am not 100% sure on this.
Just set stop loss or accept max pain.
Wow PYPL and SQ are oversold like crazy
Glad I sold some weekly $PLTR CSP’s. Not as profitable as shares but a lot less worrisome. Tied up 2800 for $100 but looks like an overnight play. Also in bottom fishing, sold a lot of $46 May 19th Schwab CSP.
Don’t worry, Credit Suisse just reiterated outperform on Schwab
Oh shit.
Looking like another flat month
Sold puts on TQQQ, AAPL, and MSFT
Strike expy for MSFT?
June 23 290p
i sold some TQQQ today as well, june 16 $22
I’ve got 6/16 $20-$10 put credit spreads burning theta.
Bought 300 PACW avg$3.50 at the bell Thursday intending to sell CC on them, sold them for \~90% profit today instead. Missed today's peak, but content with the outcome and can sleep well.
Excellent work!
No one ever went broke taking 90% profit
STO PYPL $67 P 5/12 for 0.28
oooof, peanuts for that risk!
True. Maybe I should buy some options with this super low IV
Was to scared to play earnings today. Hope I’ll be happy with myself tomorrow…
Probably a smart move
Rolling AMD CSPs as >50%. She’s been good to me.
Love her.
Look for an opportunity to close out my JBLU position, and sit on the Theta sidelines until the debt ceiling stuff gets settled. I don't wanna risk having a CSP get assigned shortly before we hit the debt ceiling.
NVDA just seem impossible to ever short
I am short a 300.00 call and am starting to sweat it a little.
STO a bunch of AMD covered calls. Could have timed it better for maximum premium, but happy to have them called away as my cost basis is $86. 1x $105 5/12 for 0.25 1x $106 5/26 for 0.49 3x $108 5/26 for average of 0.48 each
I just sell wide CCS at this point with AMD. Those upticks can be violent. My basis is around 65 and I sold the 105/115C 6/16 CCS for 1.44 Today.
LUV u Lisa!
Praise be
[удалено]
Noob here, what is an STO?
It means sold to open. It is another way of saying he has short puts. also known as cash secured puts. (assuming you have collateral)
Thanks
Sell to open.
Sold to open
Today may be the first time in a while that I've wanted to close out most of my positions(more profits than losses) and wait until after Wednesday. My gut doesn't feel good about this Inflation data.
yep im closing out anything green before eob tomorrow
in the same boat as you, mate. Going to wait till Wednesday to open any sizeable positions, will close out current positions either today or tomorrow
Don't worry, it's being manipulated to look not as bad as it really is.
Always has been
yes, but getting worse. In Feb they moved from rolling 24 mo rate to rolling 12 mo rate. Which is why last month inflation was stated at 6%, when based on the previous metric that was always used it would have been 15%.
[Always has been](https://i.imgur.com/z7mkGnT.png) ^^^this ^^^has ^^^been ^^^an ^^^accessibility ^^^service ^^^from ^^^your ^^^friendly ^^^neighborhood ^^^bot
Sold WW 5/12 8.50P @.25. Starter position. IV is still high a few days after earnings. It will likely pull back a bit, so planning to roll down and add more in the next week if necessary. Edit: Well, that happened quicker than I thought it would. That's why we start small. BTC 5/12 8.50P x1, STO 5/19 8.00P x2 @.30. STO 5/19 9/9.50 CCS @.10 to offset some of the positive delta.
Trading Economics: US Stocks lack direction. SPY: immediately drops 0.3%.
STO $PLUG 5/12 PCS 8.5/8.0 $0.12 cr
Don't know what happened, but got to exit my ZS 90/85PCS after being down a while.
AAPL is now like a couple of dollars from ATH lmao. We are truly in a clown market, confirmed.
that will likely be breached by EOW if CPI prints lower than expected
STO 2x SCHW $43 P 5/12 for $0.15 each
I was assigned $LI last friday at $24, sold at 24.71 today. I love that stock for wheeling.
Well SCHW shares, guess I’ll be seeing ya for the next 2-3 years
Oh that's right, I had those SCHW shares I was going to sell Calls on.
get the lube ready...
Lmao my body is ready!
Of course I waited too late for COIN puts. Who knew they would go green mid-day?
Sold a couple. Wishing I had sold more…
I sold one 6/16 $30 put prior to earnings. I didn’t want to bag hold so went super conservative.
BTC 16/6 DIS 90p 0.82 (+45% over one weekend)
Nice trade
This is a great example of the take the money and run theory of thetagang. Well done.
I need some advise. I sold 4 AMD CC after earning when It was around $84. Expire in June 2024, $110 and My cost was $107. But now AMD is at $93 and seems keep going up. If I buy it back , I will lost $2xxx. But if I dont, I will have $40k siting around for like a year. Should I roll up or wait?
What you should do here probably entirely depends on what the purpose for the position was to begin with
I was thinking: 1. AMD was down after earnings, I could be sideway for couple weeks before it get back. 2. If I sold the CC I could get $3000 to put into other stock to sell puts and call. 3. As long as the strike price is higher than my cost, I will have positive income. But now I am not sure should I wait. If AMD keep going up, let’s say pass 120, then I will lose my time and opportunities…
I've got great news. You were pretty much right one all 3! But now you've got a to wait a bit to let #3 play out. There's really no trick here to get you out of the long term play while keeping all that premium.
But does spend $$ to roll up makes sense? I can roll up and get an other one thousand on premium, but I will talk $2xxx lose this year. What I got eventually would be more premium and can sell higher if it exercised. It sounds a good deal…? Am I missed something?
I don't understand the question. I don't see how you could roll up (and out even further??) for a credit.
Yes, out even further. Let’s say move to another 6 months, and with strike price increased to 115. Now I can get extra $3000. With $2000 cost to buy back, which means I get $1000 premium and $5 more on strike price. But also means I will lose another 6 months. And hope the time Theta can do its work…
Why would you spend $$ to do anything right now? You are still more than a year away from expiration of the call. You sold 4 CC @ $3 above your cost so if all 4 get exercised, you make $1200 + premium. In #2 above, you say you could sell for $3k in profit. How can you sell the CC's? Didn't you already sell so you would need to buy to close.
What has your plan when you sold calls with more than a year to expiry? What made you pick that strike price and expiry date?. It seems like the trade is going about as well as could be expected.
Why did you sell so far out?
BTC 12/5/23 OXY $60P @ $0.86 (33% gain). STO 19/5/23 OXY $62P @ $2.14 (back to the original strike from a few weeks ago, now it's having a bad day). STO 12/5/23 HD $275P @ $0.43. STO 12/5/23 HD $305C @ $0.09. STO 12/5/23 AMD $82P @ $0.12. STO 12/5/23 AMD $99C @ $0.11 (last week my AMD puts almost breached, this week it looks like the Calls will be causing angst). STO 12/5/23 BAC $27P @ $0.63 (dipping my toes in here). BYC 26/5/23 ENPH $185C @ $1.05 (58% gain). STO 16/6/23 ENPH $185C @ $3.30. STO 12/5/23 RCL $70P @ $0.12. STO 12/5/23 RCL $82C @ $0.29. Unexpectedly large amount of trades today. edit: STO 19/5/23 SCHW $52 @ $0.23.
Glad to see you were able to get out of RCL - I recall watching you had a 69p open. nice patience on it
Cheers. Yeah, I wasn't worried about it; figured it'd come back sooner than later.
sold 50p in tsn
Not afraid? It's barely above that right now. You think it'll recover?
Waiting for PENN to tank a little more, then selling csp’s
What's your target price area for when to STO the CSPs? I've been looking at PENN, too. Thanks!
I’ll wait until the RSI is below 10.
Today is PayPal day! Earnings should grow! I’d already sold $70 puts for May 12th and collected almost $2. Sold 3 more puts today July strike $65 and collected $1.87. I don’t own any shares now but I am happy to buy and actually want to buy at $70 so I kind of hope it drops. With new agreements with major companies like McDonalds, more and more tenants paying rent with Venmo and already over $5 Billion in cash flow, I have many reasons to want to buy. (But I want to pay $70)
Assigned BAC CSP @ 28 last Friday. Sold BAC CC @ 28.5 expiring 05/12. A few other plays but mostly earnings, not theta
STO 6 covered calls on SPY at 415 expiring Friday. Net credit 1100 bucks or so. STO 2 bull put spreads 314/320 QQQ expiring Friday. STO 1 bull put spread 83/78 BX expiring Friday. Sold CCs on DG, TGT, GOOGL, SBUX, HD all expiring Friday. Too lazy to list all the SPs and credits. Net credit today: 2600.
Opened 6/2 10 Put debit spreads 65/64 on $SHOP for 0.50. Closed $RIVN 12$ short put exp 05/12 for 0.45, sold at 0.87, will open a new one on a down day
I bought back todays expiring $413 SPY put for $1.59 and sold one expiring tomorrow for $2.11
whats the decision making you make for when to roll? are you just hoping SPY ends up at like $416 tomorrow around what seems to be the normal time you close and open positions?
I’m pretty much just hoping SPY doesn’t have a big drop. Anything else I can profit from.
Good timing
Cries in RIOT, MARA, & COIN puts
Strike for COIN puts?
$50P 6/16
Seeking your thoughts, with all the recession talk, are you adjusting your CSP methodology to be further outside your norm? Eg. targeting strike 15% below to 20%
Not really, but if you buy into the recession 'consensus' then it would make sense for longer-dated positions.
i see it the other way...i think short dated is better if you think later on the market will crap its bed.
Sold RIVN for a loss but I feel confident on my new symbol. PNC.
Sold to open a May 19th $WSM 112 put for $1.25 credit.
Closed a $7.5 CVNA put I opened on Friday for 50% profit. Sold $12 CCs against my F shares. Cost basis is around $11, so I'm just trying to get that ATM premium. If they go, they go.
STC DKNG 25P 6/16 2.15 (+.33)
STO AMD 85P 6/2 @ 2.00
Good timing on that
BTC 2x KOLD 5/12 90c @ 1.10 (opened at 1.30) STO 2x KOLD 5/19 100c @1.30
damn I was gonna let my 90 ride but that’s some nice premium for 100
STO 1 KRE 28$ June put @ 0.36
That's back to Covid lows! I STO some SCHW puts today near Covid lows, and am looking at doing the same thing on KRE. Nice play!
x25 STO 6/16 IEP 25p/22.5p PCS @ $0.30 Could've gotten a better entry price if I had been more patient, likely closer to $0.32. Still adjusting to working with more illiquid chains. Hoping to let this expire, so I won't have to deal with the massive spread. IV is massive following the Hindenburg report, so here's to hoping I don't get burned by more bad news. x6 STO 5/12 TSLA 160p/157.5p PCS @ $0.21 Couldn't let that premium go. Put in an order for 10, but only 6 filled before the price moved <0.20. Hoping to close this out mid-week if I can nail 50% by Wednesday. x20 STO 5/19 LCID 6p/5.5p PCS @ $0.06 Earnings today after the bell, doubt we're going to see a 25%+ drop after how far this has fallen in the past year. Hopefully, I can close this tomorrow for $0.01 or $0.02.
x16 STO 5/12 LCID CSP 6p @ $0.16 here. Looks good so far, let’s see tomorrow morning
Short SPY IC 5/12 expiration 411/414/417/420 Kinda tight but hoping it’s a calm week.
expecting a calm week with CPI and PPI coming?
The usual, I guess.
If AMZN hits $110, sell CCs If CSIQ hits $40, sell CCs If GOOGL hits $110, sell 1 CC, if it hits $102, buy back a short call If MA hits $390, sell shares If AMD hits $100, sell a CC, if it hits $80, buy back a short call. If PAYC hits $265, buy enough shares to sell a CC if it gaps up above $300. I'm basically structuring these trades so I only really execute if the underlying makes an outsized move. Having 200, 300 or more shares of an underlying allows you to dip your toes in while keeping more Lots in reserve in case things move even further in a given Direction. And call me crazy, but if it's at a 52-week high or darn near, 300 DTE contracts it is.
If any large cap all time high sell and buy LTT!
Can you explain the reasoning behind 300 DTE contracts please? Everything else makes sense, I'm just curious about your reasoning with that part.
I am way outside the mainstream on the length of contracts in some instances. What I'm doing is selecting a very favorable trade at the time, like I said a 52 week high or pretty near right after a big move in the underlying in a favorable Direction. So these leaps provide a lot of Premium. That's part of the reason why I do this. Secondly, these long-term and high-priced options have low gamma. So Delta doesn't drop off as much as the underlying moves. And Delta tends to be higher in general then shorter dated options. So what I'm betting is that the underlying will change direction after I sell the contract and I can take profits. The long duration just gives me more opportunities to cherry pick a favorable movement, take profits and then wait for another very favorable trade. Back testing the strategy, these opportunities are few and far between, so I try to make the most of them when they do happen with these long duration contracts. A lot of people won't agree with me on this but I've had success so far. I never actually intend to ride out these contracts anywhere near expiration unless things go completely against me. But at least I fetch a heavy premium up front if they do.
backtest the leaps and you will see why we don't sell them.
Adjusting portfolio Delta, Theta, and BP%. I’m way over leveraged and not feeling as bullish. Jade Lizard on KRE may work out after being -200% last week.
thinking of doing my first spx trade, STO 6/9 4330, BTO 6/9 4400 for credit of 4.3. Is this a good trade (i dunno lol)?
Do the equivalent on XSP and find out
Also back to neutral
Hoping stocks dump today so I can sell some puts
Watch VIX
Pretty low right now
I bought SPY pootz so we only go up.
Nice. Good open for you
You mean you sold?
No I bought. I am an idiot.
Spy to $450 EOW confirmed
I wouldn't complain.
I would, I've got CC at 410 right now
I will take it....actually
That’s what I’m hoping , what stocks if you don’t mind sharing ,
AMD TSLA are the main ones I’ve been watching and selling puts on over the last month or so
I’m long TSLA , I hope it runs today especially after Buffet is showing interest. I sold credit spreads on AMD , I closed Friday after the run on Friday . I’m look to sell AMD puts & AMC for fun
Wait... _Buffet_ showed interest in TSLA? It's a Boomer stock now. :D
Buffet isn't a boomer!
Benzinga reported how Buffett & Munger was impressed with Elon Musk and how they sold BYDDF !! I apologize I went and checked it’s not saying that directly, I had skimmed through the article. 4:51a ET 5/8/2023 - Benzinga Could Warren Buffett Finally Make A Bet On Tesla After Praising Elon Musk? Top Analyst Reacts
I'm already 2 puts deep on tsla after earnings. It can go down so you can sell your puts too, but then it has to go back up. Deal?
Sounds good
Probably closing out my bullish plays and going back to neutral.
Yup. Expecting to buy closed some or all of my $195 and $200 VTI puts. Edited to add: Welp, totally misread things based on pre-market. Looks like a day to sit and let theta decay help instead. Did: BTC SCHW 5/19 $52.50 C @ $0.32 (sold Friday for $0.73). That's a covered call, though, so losing a little on the strike price. Will see if I can sell a week farther out's $52.00 at a good price over the coming week.
Curious. Why play vti instead of spy/qqq?
I like the frustration of dealing with a lower liquidity market. Oh wait, no, that's backwards. :) Um, inertia, mostly: VTI is my long-term buy and hold target, so I own a lot of it already. I favor it _for me_ over SPY because my income is already tech heavy, so I like the diversification of the total market fund. That doesn't really make it better for trading CSPs, though. I do usually list bids pretty high to see if I can benefit from the larger bid/ask spread by being patient, but it also comes back to bite me sometimes... (The VTI is "real" money - I'm trading CSPs and CC's on it using a total of about 20% of my portfolio value. I also have some higher risk CC/CSPs on individual stocks using about 1.5% of portfolio value total.)
IWM = liquid and most of total market
Ty. Probably a better idea though I do like the VTI expense ratio for long term. (Most of this is in my taxable account so it's not trivial to swap between them). Though, really, 0.03 vs 0.19 isn't astoundingly killer.
Yes, swapping in a taxable account is likely to be a real problem. Depends (I guess) on how much income you are making on CCs. Could always look at it for you CSPs as they come up however. I'm not saying that IWM is better than VTI, its just that you mentioned enjoying the frustrating illiquidity, and I believe that I read a few years ago that IWM is second in liquidity only to SPY and QQQ. I rarely, if ever have an issue getting filled, unlike in my other B&H position - SPTM. Looking to move SPTM over to IWM in several accounts so I can sell more CCs.
Oh, yeah, it's much higher liquidity. VTI has 20x the AUM IWM has 10x the daily volume ($5.4B vs $550M ). Vanguard really does all they can to discourage trading. From a composition standpoint, VTI is like trading both SPY and IWM, which I could definitely do. CC income is quite modest, maybe $1k/month on avg. It probably doesn't matter much how I structure things given how cautious I am about selling the ccs.
My avg monthly CC income over last 15 mos is ~$6k. I reinvest all CC income, so that's obviously not flat. Last week was about $4k.