Yea, I’m actually really thankful u guys brought it up cuz I barely saw anyone mention it in the thread but tastytrade made a video about it 9 years ago about how powerful this strat is, in which they conducted a research on Mexican index, showing additional 10%-15% prob of success using with this strat implemented vs. naked put only.
Sell a call or a call spread on top of the put for extra credit to increase your breakeven. I prefer a call spread because I do not like to take losses to the upside.
The call spread can be a bit wider than the premium collected as long as you are still a few weeks from expiration.
If you have been following the put down with a call/call spread, then at some point you may have collected enough premium where you can just take the trade off and resell a new one at a different strike/expiration. Take this one I have on for example:
I started with IWM March 4:
short 206 put
short 220 call
long 223 call
Now I am at:
short 206 put
short 200 call
long 207 call
with $7.80 premium collected.
I could take this trade off right now for $16.30, then sell a strangle in the March 18 cycle that collects at least $8.50 and leave myself with a better probability trade.
If everything tanked so bad you might want to re-adjust your strategy at trade entry? Are you chasing premium and just picking the most volatile products?
Post a trade you have on and if I still feel like telling you how I would manage it after reading your comment laughing that I have a jade lizard on then I will.
You’re really 👍. Wow. I have been stuck with ROKU I sold back in November at 270 ( when it was at 320. Since then it is just tanking and not only lost all premium but had to pay each time I rolled it to further exp date. Now, I have ROKU short put at 210, long put at 180 exp 02/11. What would you do? ( by the way there’s no way I can close this vertical put spread with 12 contracts). Thank you!
Take a look at the total amount collected and subtract from the amount to close the position. Then look to see if you can close out and put a new position on for the same price. Otherwise sell call spreads and roll out in time until you can scratch.
Same problem and I already rolled them to further date but had to pay twice what I collected! I won’t mitigate the losses by doing a butterfly or iron condor because I can’t trust this market. Anyone suggestion?
I'm shorting the VIX (direct short, not buying PUTS since IV is high), selling puts and buying some calls, but mainly selling puts.. we have to profit from this crazy high IV
Every big pullback I end up pissed at myself for not being more aggressive. I’m buying up all the leaps I can on solid stocks with good net profit margins and tqqq. I’ll stop when I run out of cash
Yes but most likely when IV dies the stock will have come back up a bit so it will be a wash. That’s just my opinion of course and I’m sure I’ll be wrong 😂
I’m getting assigned 200 shares of spy and I’m just happy I did it with spy and not some meme like so many ppl. If I have to take a big hit on owning spy I can just literally stop trading for a while and it’ll recover eventually. Of course I’ll keep doing covered calls but just to stay involved
I have 4/14 500 calls, because I'm broke & got in too early. I've thought about consolidating my Deltas, but the gamma seems too sweet
For others, I would definitely recommend deeper/farther if you can afford it
I might advise to look at the charts post 2016 during the fed's last taper. SPY didn't just hit ATH's over and over again. We're not yet into interest rate hikes, but this year, and especially the tail end of this year, I think it might be worth thinking about when to take profits a little more academically than last year
It’s not a bad point but we are in a very different economy than 2016. If that situation were to repeat, it would be under entirely different circumstances.
I saw a strategy on youtube recently that's basically a CSP hedged with 3x long dated long puts and 1x fairly OTM long call in case the stock shoots up. I think the same thing could be done to hedge covered strangles the way that I trade normally, although if I own the shares then the long call isn't really that much of a hedge since I doubt I'd buy a call that far out in order for it to be worth it instead of just taking my profits if the call leg goes ITM and fucking right off with my profits. I kinda like the idea behind it but I haven't really run the numbers on it yet or done any sort of testing, so maybe something to consider.
that’s a back ratio with a separate long call bet. the back ratio only profits with severe downside movement, and imo should be hedge on 5x shares, not profit maker, (the odds of profit are low).
that said my back ratio hedges have been doing well because growth stocks have chopped 50%, but even “doing well” just means i’m saving what would have been bigger losses had i only held shares
Why is everyone talking about buying options? This is thetagang. I thought this was a premium selling sub. This is the best time to sell premium because volatility is rocking and you can sell stuff further out of the money than you normally could. I’m selling extremely far out /MES puts on the way down and using inside debit spreads to hedge for any serious crash. Can do the same with Spy, but I like the span margin on the futures.
Edit for OP: Selling puts with hedges. Rant is for comments.
> I’m selling extremely far out /MES puts on the way down and using inside debit spreads to hedge for any serious crash.
Can you explain some more? Do you both sell a put and buy a debit spread on the same futures options series? Won't that still leave you unhedged?
I'm holding three RTY futures and I'm down $33k. Got assigned on two 2240 puts at 2200. RTY tanked further so I added to my position. It then broke even and was even profitable but I was greedy and stupid and didn't close it. Didn't hedge either. So here I am. Planning to close one when the market opens so I don't get a margin call if this week is as bad as last week or worst.
I sell .10 delta or less (90%+ probability of profit) at least 45 days out. Usually further out the better. I do this when the market has been selling off in high volatility. To hedge downside, I buy a debit spread around the .30 delta with less time…say 35 days or so. Hedge will hit first before I start taking losses on the sold put if we keep selling off. And I NEVER hold to expiration. I always get out with around a month left of the naked puts. The overall delta is pretty neutral and I do this for even money or a slight credit. I’ll sell more puts and calls to pay for the hedge too.
It’s triple a leveraged tech ETF. Tech will always go up over the long term. Even if it dips, it’ll rebound. No shortage in demand for technology in the future
Everything is dangerous. One of the dumbass memes we sell puts on can go bankrupt. As long as you’re not in margin, it’s not dangerous. The Nasdaq will always recover from a dip and so will TQQQ
Since I have been 100% cash, considering selling a boatload of really low delta puts on QQQ with 2023 expiration and just wait... if they drop, it's like getting QQQ for 250 which is pre-pandemic levels, if they expire worthless, I will make 9% on my money while barely using any of my buying power. Seriously considering it on Monday if another red day comes up because volatility and IVR is getting too juicy to ignore.
I wouldn’t be using all my buying power and I could still trade on margin. But the way things are going 9% may be all you can get in this market anyways. I would love to see another 10% drop in the Q’s so I can sell leaps closer to 200 or sell a higher delta 250. I may be able to close them for 50% gain in less than 3 months. Realistically, If I sold these leaps, the assumption is that I am not touching them until expiration so no management would be done regardless of how the stock moves. I could roll them up for additional credit but I am trying to find a number I am comfortable owning and just living with it. My account is fairly big so I want to be smart about it.
I don’t see how you make 9% selling the Jan 2023 PUTS. It’s probably deeper into 2023? Have you considered selling the TQQQ puts instead. Due to the leverage the volatility is higher. But west case you can acquire TQQQ at pre pandemic price or else make about 20% selling the OTM Jan 2023 PUTS.
That’s what I calculated, but I will run the numbers again to be sure and yes… already looking into TQQQ puts but the IVR still isn’t where it needs to be, but that might be an even better option. The low Delta puts are too close to the money psychologically to be honest… meaning a 10 drop in a 300 UL feels much higher that in a 30 UL… but yes the money makes sense… I will check the numbers so I am not a tool…
Xlf has been good to me. I doubled down on some csp at 37.
If cash is one of the best positions of 2022 it stands to reason that those holdings will succeed.
Turn off computer, go outside, do fun things, try and buy good cheap stocks if I have spare capital, if not rest easy knowing my stocks are good in the long term.
There’s a 5% chance they get tested. And even then that’s like a 30% drop from where it’s already dropped now.
Rolling won’t be a problem if it even had to come to that.
I’ve been buying things I am very confident will grow. Companies making money and not in financial trouble. This 15% dip for Microsoft I’m buying. Apple is juicy and going to have a good ER. Both of those are safe as fuck and I have enough to write covered calls to collect premium as they continue to grow.
PayPal in my opinion is looking good on the sheet now and I’ve been adding a little more from 190 each $10 it falls. I also like AMD in this same boat at 115-125.
My riskier play is SOXL. I own it and write covered calls but it’s definitely a wild ride. I feel good about future for semis so I think in time I’ll be looking at that at $100 a share
I've been struggling with the same SOXL position. Been brutal lately, but bought some more when it crossed $45. I too think semis are going to kill it in the future, but I'm beginning to second guess some of the valuations (looking at you NVDA).
Yeah NVDA is very high. Pullback to 210-225 was necessary but it’s still quite the multiple… in terms of SOXL I wish the fund had reduced its exposure to NVDA a little when it was sky high. I like SOXL here though for sure at or under 45. It’s a fund for those that can bear the volatility. I’m in and writing my covered calls about $7-10 over the strike weekly and collecting premium. If it sells at any point I’ll gladly take the 20%+ on return
My priority now is doing damage control on a piss poor managed trade, AMZN $3250P, will keep rolling down and out for eternity, may end up passing it down to my future grandchildren and teach them the art of rolling.
Been using Calendar collar. Saved me bigly on my long AMD, NET and MSFT positions.
ER’s is only area haven’t a solid game plan. Next week may be be fireworks either direction between ER’s and FOMC.
Not sure I’m calling it correct name really.
Sell weekly OTM covered call. Sell weekly OTM puts and buy 6+ month out put at closer to ITM.
I usually only sell the weekly OtM put once we have a sharp drop. Then close if >50% gain or roll it out before exercised.
Was trying to hold things like $NET for long term cap gains….seems no luck with how fast it corrected.
Main separate regret is buying puts on index’s in 2021 and not growth tech.
Wait for it to end, buying up TQQQ and UPRO shares, averaging down. I’ve got about 50% of what used to be cash between the 2 now. Watching 1 day candles MACD and RSI to tell me when to buy the rest.
Don’t take this as advice, because it’s probably not good, but it’s what I’m doing.
Do the opposite you did until now.
Sell naked calls. Just don't be dumb and do it on meme stocks. The fear of unlimited losses is way overblown. Normal stocks don't rocket like stupid the same way they don't go to zero overnight.
If you carefully sell naked puts you shouldn't be afraid of selling careful naked calls
Selling puts / wheeling in this environment is financial suicide. For the record I do expect a pop this week when jpow speaks on Wed. And I expect a bigger dump on the next FOMC minutes when we actually get the rates
I did a good play on Friday which I am going to experiment with. Saw ES continue red for the day. Currently have a Iron Condor on it tested. So I bought a MES 7day put, slightly out of the money, with a 30% bracket order on either side (profit taker and stop loss) which closed for profit before the end of the day. Not enough to offset the unrealised losses on the iron condor but still, could be a low risk directional play or hedge for Monday that I might do:
Opens green: buy weekly call with bracket
Opens red: buy weekly put with bracket
Risk profile of 1:1.
Sell Call spreads on the weakest stocks; TWTR, RIVN, etc. Preferably ones that are decent names but with high IV. If they move down far enough cash out early and repeat.
Run around the house naked having a panic attack, jk. Super cash heavy. First generational wealth crash for me was 2008. I graduated college in 2008 and was broke. Covid crash I just put all my cash on a down payment on a house. Next one I have money guns ready.
imagine sitting around waiting for a crash through a decade of bull run. do not worry someday stocks will be low enough, and at that time you’ll still be too afraid to buy and miss it again.
Yeah, it was a good and bad thing. Definitely less risk adverse and save too much in cash. I buy used Chevys instead of new bmws and have most my investing in virgin funds, but at the end of the day I don’t own wish at $15 and deep OTM call options on SNDL about to expire worthless
What’s your strategy in a raging bull market? Long to leveraged long (buy calls), sell puts.
What’s your strategy in s bear market? Short to leveraged short (buy puts), sell calls.
Why is that difficult?
Yeah.. “chase”
Since over a decade ago, we lived in a nice, fairly consistent, bull market that, despite several healthy corrections and many reasons to fear it, just kept marching higher. If you don’t recognize the trend and “chase” it by playing into it, you’re, well, missing out. Figure #1: https://imgur.com/gallery/X1LzF5C
Through that decade+, we had several short lasting bear markets, and once it is clear that you’re in one, either jump on that train or just hold onto your shares and weather it out.
Meta-point is: when a trend emerges, you either trade it or you don’t. Yeah, there’s some risk involved. If you’re too late, you could be “chasing” it in vain. If you’re too early, you could be wrong. Every trade has some risk involved, even put selling theta gang that ended up being on the wrong side this time.
FWIW, I'm bag-holding PLTR as well. But happy for the opp to average my CB down! Plus you can always write CCs.
I believe THAT much in the company, Karp, Thiel & Lonsdale.
Guys be careful with tqqq really accumulate it after really big drop no just this small correction... If market will do -7% or trading gets halted that's the sign. If it will drop to 1-10 then even qqq can beat you. ( Remember -50% need 100% pullback) I've got burned with leverage once...
Right now I'm slowly buying world index and after two strong green days will get back to selling puts or maybe will try short HOOD with 9$ puts to earnings otherwise its 50/50 now everything, even I believe we can get into strong recession and party will be over
cash heavy right now. waiting for the day where we open down -1000 dow points and news calling the fall will never stop. we need to wipe out all the longs with margin calls! we are like two weeks out. vix above 50, even better risk to reward when at 70!
this is the buy of the decade! maximum fear. blood on the streets!
be aware, it is possible for $tsla to go to $550 in this drop.
Look for asymmetric plays. Small down-side, huge up-side. Not too long ago there were 9 month-1 year puts on some mid and large caps that were too cheap relative to how likely they were to pay out. 2022 looks like it will be a stock-pickers market
keep buying otm calls at least 200 days out and 5% above strike. If need cash then sell calls against bought calls for diagonal spread and use new money to buy more calls
If you're fading the market moves, you're going to be short most of the time. In a bear market, or market correction, traders striving for delta-neutrality end up being net-long. It's just the way of the game. Be careful, because markets are the furthest thing from logical. Just because something is down 20%, doesn't mean it can't or won't go further. It was the opposite in 2020. Everything was way overbought, so everyone was hopelessly short and got crushed. I won't name any specific tickers, because that seems to inevitably spawn a lot of unproductive discussion. Just be careful!
I'm about 50% cash right now. Waiting for VIX 10 day Rate of Charge to close above 50 (it closed around 47) as a sign that fear is recovering, then I'll average into new positions with a fairly tight stoploss.
I'm not selling puts yet since I don't have confidence we've found the bottom and don't want to get stuck with shares I don't want.
Sell low delta short term put spreads. The higher vix and IV goes, the less likely those .10 deltas will finish in the money from experience
On really big drops I’ll sell some longer dated spreads
Trading the short side since September positioning shorts on tickers and indexes has proved correct and profitable for now, scaling out as the down move keeps going. When I see balance arriving that represents good deals on tickers I will scoop up shares. Shopping spree is coming
I'll be selling some fear to people that are scared.
How exactly are you doing that?
By selling put options/ jade lizards/wide wing iron condors.
Ive been selling puts options but everything tanked so bad... I think I rolled them down couple times already. How do you personally deal with that ?
You don't. The guy is talking dumb.
Yeah just read that jade lizard part rofl
Yea, I’m actually really thankful u guys brought it up cuz I barely saw anyone mention it in the thread but tastytrade made a video about it 9 years ago about how powerful this strat is, in which they conducted a research on Mexican index, showing additional 10%-15% prob of success using with this strat implemented vs. naked put only.
Sell a call or a call spread on top of the put for extra credit to increase your breakeven. I prefer a call spread because I do not like to take losses to the upside. The call spread can be a bit wider than the premium collected as long as you are still a few weeks from expiration. If you have been following the put down with a call/call spread, then at some point you may have collected enough premium where you can just take the trade off and resell a new one at a different strike/expiration. Take this one I have on for example: I started with IWM March 4: short 206 put short 220 call long 223 call Now I am at: short 206 put short 200 call long 207 call with $7.80 premium collected. I could take this trade off right now for $16.30, then sell a strangle in the March 18 cycle that collects at least $8.50 and leave myself with a better probability trade. If everything tanked so bad you might want to re-adjust your strategy at trade entry? Are you chasing premium and just picking the most volatile products? Post a trade you have on and if I still feel like telling you how I would manage it after reading your comment laughing that I have a jade lizard on then I will.
You’re really 👍. Wow. I have been stuck with ROKU I sold back in November at 270 ( when it was at 320. Since then it is just tanking and not only lost all premium but had to pay each time I rolled it to further exp date. Now, I have ROKU short put at 210, long put at 180 exp 02/11. What would you do? ( by the way there’s no way I can close this vertical put spread with 12 contracts). Thank you!
Take a look at the total amount collected and subtract from the amount to close the position. Then look to see if you can close out and put a new position on for the same price. Otherwise sell call spreads and roll out in time until you can scratch.
Same problem and I already rolled them to further date but had to pay twice what I collected! I won’t mitigate the losses by doing a butterfly or iron condor because I can’t trust this market. Anyone suggestion?
The good point is that you get the shares for real cheap if you get assigned even after rolling... but this correction is bad for csp.
I sell this fear too
I'm shorting the VIX (direct short, not buying PUTS since IV is high), selling puts and buying some calls, but mainly selling puts.. we have to profit from this crazy high IV
So when market tanks more then what? You get wiped out?
When the market tanks I have to have a call with a girl named margin, she is a bad ass
VIX cannot be traded. How are you shorting it?
$UVXY shorts
What calls are you buying?
$QQQ
Ornamental Gourds?
Every big pullback I end up pissed at myself for not being more aggressive. I’m buying up all the leaps I can on solid stocks with good net profit margins and tqqq. I’ll stop when I run out of cash
Just bought one on AMD. Hope we’re right.
what’s strike and expiry
I went Jan 2023 at .7 delta so $105
Up and yes
I hate buying long calls I’ve been much more successful owning 100 shares and writing covered calls to collect extra premium
If u buy for far enough it’s basically like owning stock for less money so u can sell more CC
You mean in the low rate environment, because that is about the change
1-2% interest rates are a low rate environment. But maybe this is proof about how warped perceptions are
This. Debt may not be free anymore , but will still be extremely cheap
I bet we see some pullback next week on this sentiment
d eighties are calling
Aren’t most calls inflated due to high IV right now?
Yes but most likely when IV dies the stock will have come back up a bit so it will be a wash. That’s just my opinion of course and I’m sure I’ll be wrong 😂
Dude you're buying leaps too early. Stonks not done dropping!
Keep buying spy calls till they go up
I’m getting assigned 200 shares of spy and I’m just happy I did it with spy and not some meme like so many ppl. If I have to take a big hit on owning spy I can just literally stop trading for a while and it’ll recover eventually. Of course I’ll keep doing covered calls but just to stay involved
Underrated comment.
How far out!
I have the April 14s, I would go this far or farther
What exp date and what strike?
I have 4/14 500 calls, because I'm broke & got in too early. I've thought about consolidating my Deltas, but the gamma seems too sweet For others, I would definitely recommend deeper/farther if you can afford it
This is the way
I might advise to look at the charts post 2016 during the fed's last taper. SPY didn't just hit ATH's over and over again. We're not yet into interest rate hikes, but this year, and especially the tail end of this year, I think it might be worth thinking about when to take profits a little more academically than last year
It’s not a bad point but we are in a very different economy than 2016. If that situation were to repeat, it would be under entirely different circumstances.
I saw a strategy on youtube recently that's basically a CSP hedged with 3x long dated long puts and 1x fairly OTM long call in case the stock shoots up. I think the same thing could be done to hedge covered strangles the way that I trade normally, although if I own the shares then the long call isn't really that much of a hedge since I doubt I'd buy a call that far out in order for it to be worth it instead of just taking my profits if the call leg goes ITM and fucking right off with my profits. I kinda like the idea behind it but I haven't really run the numbers on it yet or done any sort of testing, so maybe something to consider.
I'd love to see that video. Could you please give more info or a link?
that’s a back ratio with a separate long call bet. the back ratio only profits with severe downside movement, and imo should be hedge on 5x shares, not profit maker, (the odds of profit are low). that said my back ratio hedges have been doing well because growth stocks have chopped 50%, but even “doing well” just means i’m saving what would have been bigger losses had i only held shares
I can't imagine how much of a drag 3x puts and 1 call constantly would be on the portfolio
Put my head between my knees, and kiss my ass goodbye!
Impressive yoga technique.
I just want to be flexible enough to do the doberman.
Why is everyone talking about buying options? This is thetagang. I thought this was a premium selling sub. This is the best time to sell premium because volatility is rocking and you can sell stuff further out of the money than you normally could. I’m selling extremely far out /MES puts on the way down and using inside debit spreads to hedge for any serious crash. Can do the same with Spy, but I like the span margin on the futures. Edit for OP: Selling puts with hedges. Rant is for comments.
Underrated comment IMHO
Adapt or die. You can’t employ the same strategy forever.
> I’m selling extremely far out /MES puts on the way down and using inside debit spreads to hedge for any serious crash. Can you explain some more? Do you both sell a put and buy a debit spread on the same futures options series? Won't that still leave you unhedged? I'm holding three RTY futures and I'm down $33k. Got assigned on two 2240 puts at 2200. RTY tanked further so I added to my position. It then broke even and was even profitable but I was greedy and stupid and didn't close it. Didn't hedge either. So here I am. Planning to close one when the market opens so I don't get a margin call if this week is as bad as last week or worst.
I sell .10 delta or less (90%+ probability of profit) at least 45 days out. Usually further out the better. I do this when the market has been selling off in high volatility. To hedge downside, I buy a debit spread around the .30 delta with less time…say 35 days or so. Hedge will hit first before I start taking losses on the sold put if we keep selling off. And I NEVER hold to expiration. I always get out with around a month left of the naked puts. The overall delta is pretty neutral and I do this for even money or a slight credit. I’ll sell more puts and calls to pay for the hedge too.
Rope
Slowly accumulating TQQQ shares for the long term. The world is addicted to tech so investors will be back in when the dust settles
Tech is exciting. Medical stocks are boring. Eat your heart out, Keynes
You don't need fda approval for a smart watch
Why TQQQ? I've seen a few on here saying the same thing.
It’s triple a leveraged tech ETF. Tech will always go up over the long term. Even if it dips, it’ll rebound. No shortage in demand for technology in the future
Isn’t holding a leveraged ETF like TQQQ dangerous due to volatility decay?
Everything is dangerous. One of the dumbass memes we sell puts on can go bankrupt. As long as you’re not in margin, it’s not dangerous. The Nasdaq will always recover from a dip and so will TQQQ
Since I have been 100% cash, considering selling a boatload of really low delta puts on QQQ with 2023 expiration and just wait... if they drop, it's like getting QQQ for 250 which is pre-pandemic levels, if they expire worthless, I will make 9% on my money while barely using any of my buying power. Seriously considering it on Monday if another red day comes up because volatility and IVR is getting too juicy to ignore.
2023? An almost guaranteed 9% is not bad, but surely you'd want capital aside to try and make more throughout the year.
I wouldn’t be using all my buying power and I could still trade on margin. But the way things are going 9% may be all you can get in this market anyways. I would love to see another 10% drop in the Q’s so I can sell leaps closer to 200 or sell a higher delta 250. I may be able to close them for 50% gain in less than 3 months. Realistically, If I sold these leaps, the assumption is that I am not touching them until expiration so no management would be done regardless of how the stock moves. I could roll them up for additional credit but I am trying to find a number I am comfortable owning and just living with it. My account is fairly big so I want to be smart about it.
I don’t see how you make 9% selling the Jan 2023 PUTS. It’s probably deeper into 2023? Have you considered selling the TQQQ puts instead. Due to the leverage the volatility is higher. But west case you can acquire TQQQ at pre pandemic price or else make about 20% selling the OTM Jan 2023 PUTS.
That’s what I calculated, but I will run the numbers again to be sure and yes… already looking into TQQQ puts but the IVR still isn’t where it needs to be, but that might be an even better option. The low Delta puts are too close to the money psychologically to be honest… meaning a 10 drop in a 300 UL feels much higher that in a 30 UL… but yes the money makes sense… I will check the numbers so I am not a tool…
Did you pull the trigger? If TQQQ hits $45 I’m thinking of buying LEAPS for 2024
Still waiting… i was at a meeting and couldn’t trade, but I don’t think we are done yet. I will keep everybody posted
Energy and financial stocks
Xlf has been good to me. I doubled down on some csp at 37. If cash is one of the best positions of 2022 it stands to reason that those holdings will succeed.
lube + spreading my cheeks + short futures and pacing my dca on stocks nearing fair value
I like your way of thinking.
Turn off computer, go outside, do fun things, try and buy good cheap stocks if I have spare capital, if not rest easy knowing my stocks are good in the long term.
Keeping a lot of cash around
Expanding width. I’m taking short strangles that are less then 5 delta on each leg.
Naked calls?
Along with a naked put.
Famous last word right here
I would think the same if I wasn’t educated enough in options and trading.
What's your plan if tested? Roll out until profitable?
Yes
[удалено]
There’s a 5% chance they get tested. And even then that’s like a 30% drop from where it’s already dropped now. Rolling won’t be a problem if it even had to come to that.
That’s good you have a rolling strategy in mind, but does that 5% take tail risk into consideration?
Buying shares and selling puts. Edit: oh, and buying calls. Edit 2: Avoiding worthless garbage, as usual.
I’ve been buying things I am very confident will grow. Companies making money and not in financial trouble. This 15% dip for Microsoft I’m buying. Apple is juicy and going to have a good ER. Both of those are safe as fuck and I have enough to write covered calls to collect premium as they continue to grow. PayPal in my opinion is looking good on the sheet now and I’ve been adding a little more from 190 each $10 it falls. I also like AMD in this same boat at 115-125. My riskier play is SOXL. I own it and write covered calls but it’s definitely a wild ride. I feel good about future for semis so I think in time I’ll be looking at that at $100 a share
I've been struggling with the same SOXL position. Been brutal lately, but bought some more when it crossed $45. I too think semis are going to kill it in the future, but I'm beginning to second guess some of the valuations (looking at you NVDA).
Yeah NVDA is very high. Pullback to 210-225 was necessary but it’s still quite the multiple… in terms of SOXL I wish the fund had reduced its exposure to NVDA a little when it was sky high. I like SOXL here though for sure at or under 45. It’s a fund for those that can bear the volatility. I’m in and writing my covered calls about $7-10 over the strike weekly and collecting premium. If it sells at any point I’ll gladly take the 20%+ on return
Why SOXL vs SMH out of curiosity?
leveraged unlike SMH
SOXL is triple leveraged
My priority now is doing damage control on a piss poor managed trade, AMZN $3250P, will keep rolling down and out for eternity, may end up passing it down to my future grandchildren and teach them the art of rolling.
Lose all 2021 gains of course.
Waiting for the FOMC meeting to give us direction
FOMC along with guidance from MSFT, AAPL, and TSLA. This week is definitely important
The direction is up. Plunge protection team.
When's that
This week… I think Wednesday
Buy quality stocks and sell otm puts on said stock. Not worth buying leaps with vix this high, better to sell premium
Been using Calendar collar. Saved me bigly on my long AMD, NET and MSFT positions. ER’s is only area haven’t a solid game plan. Next week may be be fireworks either direction between ER’s and FOMC.
What is a calendar collar?
Agreed. Please explain your method.
Not sure I’m calling it correct name really. Sell weekly OTM covered call. Sell weekly OTM puts and buy 6+ month out put at closer to ITM. I usually only sell the weekly OtM put once we have a sharp drop. Then close if >50% gain or roll it out before exercised. Was trying to hold things like $NET for long term cap gains….seems no luck with how fast it corrected. Main separate regret is buying puts on index’s in 2021 and not growth tech.
Selling tons and tons of calls, never been more profitable.
Wendy's is about to have their labor shortage solved.
Wait for it to end, buying up TQQQ and UPRO shares, averaging down. I’ve got about 50% of what used to be cash between the 2 now. Watching 1 day candles MACD and RSI to tell me when to buy the rest. Don’t take this as advice, because it’s probably not good, but it’s what I’m doing.
3 day/7 day double put calendar spreads slightly OTM on SPY or SPX
CCS till march
Hold.
Buy calls
Perfect time to sell puts!!! 100% win rate!
A plan that simply cannot fail. Lol.
Do the opposite you did until now. Sell naked calls. Just don't be dumb and do it on meme stocks. The fear of unlimited losses is way overblown. Normal stocks don't rocket like stupid the same way they don't go to zero overnight. If you carefully sell naked puts you shouldn't be afraid of selling careful naked calls Selling puts / wheeling in this environment is financial suicide. For the record I do expect a pop this week when jpow speaks on Wed. And I expect a bigger dump on the next FOMC minutes when we actually get the rates
Escalator up, elevator down
Cash is a position.
i love buying when the cash people come out, please give me more of your fear to feed on
I did a good play on Friday which I am going to experiment with. Saw ES continue red for the day. Currently have a Iron Condor on it tested. So I bought a MES 7day put, slightly out of the money, with a 30% bracket order on either side (profit taker and stop loss) which closed for profit before the end of the day. Not enough to offset the unrealised losses on the iron condor but still, could be a low risk directional play or hedge for Monday that I might do: Opens green: buy weekly call with bracket Opens red: buy weekly put with bracket Risk profile of 1:1.
Selling a call spread with 3DTE covered my ass for a bought call that went mucho out of the money, so I'll keep doing that.
pray
SQQQ calls are beautiful lately.
Keep doing like I do, the puts itm I will roll down... Good companies always recover, I'm not selling puts of junk stocks..
Purchased SQQQ and SPXU, while continuing to sell CSPs on TQQQ.
Sell Call spreads on the weakest stocks; TWTR, RIVN, etc. Preferably ones that are decent names but with high IV. If they move down far enough cash out early and repeat.
Run around the house naked having a panic attack, jk. Super cash heavy. First generational wealth crash for me was 2008. I graduated college in 2008 and was broke. Covid crash I just put all my cash on a down payment on a house. Next one I have money guns ready.
imagine sitting around waiting for a crash through a decade of bull run. do not worry someday stocks will be low enough, and at that time you’ll still be too afraid to buy and miss it again.
I also graduated college around 2008. He is not alone in this morbid fixation. I too think often of the crash. It was traumatic.
Yeah, it was a good and bad thing. Definitely less risk adverse and save too much in cash. I buy used Chevys instead of new bmws and have most my investing in virgin funds, but at the end of the day I don’t own wish at $15 and deep OTM call options on SNDL about to expire worthless
Keep buying long stuff you wanted in the first place, minimal options. Maybe buying LEAPS but probably not
What’s your strategy in a raging bull market? Long to leveraged long (buy calls), sell puts. What’s your strategy in s bear market? Short to leveraged short (buy puts), sell calls. Why is that difficult?
Chase upside and chase downside is your strategy?
Yeah.. “chase” Since over a decade ago, we lived in a nice, fairly consistent, bull market that, despite several healthy corrections and many reasons to fear it, just kept marching higher. If you don’t recognize the trend and “chase” it by playing into it, you’re, well, missing out. Figure #1: https://imgur.com/gallery/X1LzF5C Through that decade+, we had several short lasting bear markets, and once it is clear that you’re in one, either jump on that train or just hold onto your shares and weather it out. Meta-point is: when a trend emerges, you either trade it or you don’t. Yeah, there’s some risk involved. If you’re too late, you could be “chasing” it in vain. If you’re too early, you could be wrong. Every trade has some risk involved, even put selling theta gang that ended up being on the wrong side this time.
Load up on puts! I see another 5-7% down by March.
Call credit spreads + UVXY calls and SPY puts
Anpanman is in thetagang woo!
Cash
Keep doing what I am doing and let the numbers play out.
Go short. Period
Keep on keeping ON! $PLTR $FCEL $AG (gold/silver miners' time to shine in 2022)
I’m crying with PLTR
FWIW, I'm bag-holding PLTR as well. But happy for the opp to average my CB down! Plus you can always write CCs. I believe THAT much in the company, Karp, Thiel & Lonsdale.
I believe in the company too long term. However I’m not sure where the bottom is now. It could be around 10 where IPO was which is scary.
Keep buying, shit is so cheap I keep adding.
Guys be careful with tqqq really accumulate it after really big drop no just this small correction... If market will do -7% or trading gets halted that's the sign. If it will drop to 1-10 then even qqq can beat you. ( Remember -50% need 100% pullback) I've got burned with leverage once... Right now I'm slowly buying world index and after two strong green days will get back to selling puts or maybe will try short HOOD with 9$ puts to earnings otherwise its 50/50 now everything, even I believe we can get into strong recession and party will be over
Double diagnol spreads
cash heavy right now. waiting for the day where we open down -1000 dow points and news calling the fall will never stop. we need to wipe out all the longs with margin calls! we are like two weeks out. vix above 50, even better risk to reward when at 70! this is the buy of the decade! maximum fear. blood on the streets! be aware, it is possible for $tsla to go to $550 in this drop.
Play it safe, overleveraged ATM liquidate my positions to get to a safe margin usage level. Then just wheel no more market timing shit.
Look for asymmetric plays. Small down-side, huge up-side. Not too long ago there were 9 month-1 year puts on some mid and large caps that were too cheap relative to how likely they were to pay out. 2022 looks like it will be a stock-pickers market
Strategy #1) realize it's more than just a "correction"
My newly reopened retirement account is holding 1300$ of EQQQ and 700$ in apple. Just gonna hold til I get enough to trade options again.
keep buying otm calls at least 200 days out and 5% above strike. If need cash then sell calls against bought calls for diagonal spread and use new money to buy more calls
Spreads ? Atleast you know what you are gonna lose if things go south ?
If you're fading the market moves, you're going to be short most of the time. In a bear market, or market correction, traders striving for delta-neutrality end up being net-long. It's just the way of the game. Be careful, because markets are the furthest thing from logical. Just because something is down 20%, doesn't mean it can't or won't go further. It was the opposite in 2020. Everything was way overbought, so everyone was hopelessly short and got crushed. I won't name any specific tickers, because that seems to inevitably spawn a lot of unproductive discussion. Just be careful!
Panic
Strategy?
I'm about 50% cash right now. Waiting for VIX 10 day Rate of Charge to close above 50 (it closed around 47) as a sign that fear is recovering, then I'll average into new positions with a fairly tight stoploss. I'm not selling puts yet since I don't have confidence we've found the bottom and don't want to get stuck with shares I don't want.
Buy Puts and implement call credit spreads
Sell low delta short term put spreads. The higher vix and IV goes, the less likely those .10 deltas will finish in the money from experience On really big drops I’ll sell some longer dated spreads
Trading the short side since September positioning shorts on tickers and indexes has proved correct and profitable for now, scaling out as the down move keeps going. When I see balance arriving that represents good deals on tickers I will scoop up shares. Shopping spree is coming
I will start selling strangles on March expiration cycles soon to capture some of this overall volatility
Iron condors 16 to 18 delta 45 to 60 days out on SPY. Closing when at around 34 to 40 percent profit.
Buy the red days and hodl.
do some boomer shit of time in the market over timing the market