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Options Trading (2 Viewers)
- Thread starter TripItUp
- Start date
My PLTR play is a great illustration of this. I had sold $25 puts with 3/19 expiration for which I had collected about 80% of the premium by Monday 3/15 so I closed them out. Freed up the cash that had secured those puts. I sold a handful more puts with April expiration at $24 strike (not $25 like before) and those have already shown a gain of over $100. In other words, I could have held those puts throughout this week, and squeezed out the last few bucks on the original ones. But by buying them to close, I could sell fresh ones and take advantage of a much steeper decay curve, especially given how PLTR dropped in the morning then rebounded. Somewhere in all of this is a calculus problem, which sounds quite attractive to me, but I have codified it so strictly yet. I'm buying and selling intuitively, which I like, too, but the whole "rate of change" thing is central and I'm pretty sure the theory says that it is best to close out those options once they've run almost completely dry. Just not a lot of juice left in them that last week.
KGB
Footballguy
NIO -$13,000 LOSS
RIOT 4/1 + $11,500 WIN
RIOT 4/9 $59C + $2590 WIN
BLDP 4/16 $25C Daytraded +$3000 WIN
RIOT 6/18 $60C +62%
RIOT 1/21/22 $42C +48%
CCL 7/16 $25C +86%
PLTR 8/20 $30C -41%
PLTR 11/19 $35C -51%
PLTR 1/21/22 $50C -68%
DKNG 10/15 $100C -6%
UWMC 4/16 $10C -29%
UWMC 4/16 $11C -$30%
UWMC 5/21 $14C -31%
UWMC 1/21/22 $15C -35%
RIOT 4/1 + $11,500 WIN
RIOT 4/9 $59C + $2590 WIN
BLDP 4/16 $25C Daytraded +$3000 WIN
RIOT 6/18 $60C +62%
RIOT 1/21/22 $42C +48%
CCL 7/16 $25C +86%
PLTR 8/20 $30C -41%
PLTR 11/19 $35C -51%
PLTR 1/21/22 $50C -68%
DKNG 10/15 $100C -6%
UWMC 4/16 $10C -29%
UWMC 4/16 $11C -$30%
UWMC 5/21 $14C -31%
UWMC 1/21/22 $15C -35%
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Desert_Power
Footballguy
This is both fascinating and a great example why I don't play this game.
I saw your UWMC calls earlier and wanted to ask you why not just buy the stock outright? I also wish I would have sold more puts against it than I have.
I saw your UWMC calls earlier and wanted to ask you why not just buy the stock outright? I also wish I would have sold more puts against it than I have.
KGB
Footballguy
Honest answer is I probably shouldn't be playing with options. At least not with large amounts (to me)... It's addicting.
The reason I keep posting updates, is, A) maybe I'll get some great advice like Sand suggesting I sell 1 earlier today. 2) If I see it in front of me in Green and Red, my brain will tell me to keep at it or stop. In a weird way making it public keeps me accountable. And I think it's interesting story to follow.
UWMC -- I have 11,550 shares @ $9.48
I built up my account sticking to just shares and should probably stick to that. We shall see.
Desert_Power
Footballguy
It's certainly interesting to follow. Not trying to judge.Honest answer is I probably shouldn't be playing with options. At least not with large amounts (to me)... It's addicting.
The reason I keep posting updates, is, A) maybe I'll get some great advice like Sand suggesting I sell 1 earlier today. 2) If I see it in front of me in Green and Red, my brain will tell me to keep at it or stop. In a weird way making it public keeps me accountable. And I think it's interesting story to follow.
UWMC -- I have 11,550 shares @ $9.48
I built up my account sticking to just shares and should probably stick to that. We shall see.
KGB
Footballguy
No worries. UWMC is certainly a YOLO, so it should be a ride either way. Wish me luck!
Desert_Power
Footballguy
Bossman
Footballguy
Sold 1 3/26 GME Put today ... $131 strike
Paid me $10.40
What I consider a pretty low risk with the stock trading around $200.
and $1040 is a nice take for only 8 days out.
Probably should have sold 2 but would have tied up $26k in my account.
I had my finger on a more agressive orders at $180 and $165 strike ... but decided to play it safe.
Paid me $10.40
What I consider a pretty low risk with the stock trading around $200.
and $1040 is a nice take for only 8 days out.
Probably should have sold 2 but would have tied up $26k in my account.
I had my finger on a more agressive orders at $180 and $165 strike ... but decided to play it safe.
NajehHejan
Footballguy
I am confused. I sold 5 BNGO puts March 19 $11 some time back. It is 5:09 PM on March 19th. Why haven't these shares been put on me? Not that I want to pay $11/each for 500 shares that are worth around $9 each, but I'm clueless as to why someone wouldn't have dumped them on me. TD Ameritrade still shows that I have -5 puts at a 72% loss. Am I going to get bent over on Monday morning?
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Bob Sacamano
Footballguy
NajehHejan
Footballguy
Thanks. Can’t wait lol.
I hope it’s like Goodfellas, when Henry leaves court/jail for the first time. I’m expecting TD’s virtual assistant Ted to greet me online first thing Monday morning with “Hey, congratulations, you broke your cherry”
Bob Sacamano
Footballguy
Papa Georgio
Footballguy
Anyone looking at AMC Puts after fear of diluting the shares?
Sand
Footballguy
Papa Georgio
Footballguy
Sand
Footballguy
If these fears cause a nice dip (and with the high IV here) I'd be inclined to theta farm this.
Papa Georgio
Footballguy
Understandable. Not really a strong area of mine at all as I am still learning the nuances of options. I have tried to use the wheel a few times in simulated trading to some success but I think I need a little more time before I start using my own money.
Bossman
Footballguy
Sold 1 4/1 GME Put today...
$132 strike
Paid me $13.05
... So someone PAID me $1305 ..
and they are betting that Gamestonk will be lower than $132 in less than 2 weeks. Trading in the $190's today.
That’s because earnings is coming. It could tank.Sold 1 4/1 GME Put today...
$132 strike
Paid me $13.05
... So someone PAID me $1305 ..
and they are betting that Gamestonk will be lower than $132 in less than 2 weeks. Trading in the $190's today.
Bossman
Footballguy
I curious as to how this GME earnings report will affect the stock price.pecorino said:
I can't imagine that the estimates are very high for this company ... despite the stock price.
So could be a miss ... but a near miss.
Seems to me folks aren't investing in this stock because of what they did the last qtr.
More so what the company has planned for the future ... new leadership and such.
Also, the whole Redit WSB holding this thing up. They don't look at charts. They're just dumb apes.
It will bleed down for sure ... but I'm thinking it settles at $140's - $150's
Sand
Footballguy
Bought the $7.50 UWMC call for $1.45. Breakeven is at 8.95 and the stock is at 8.70 right now. With the IV crush yesterday this is a pretty reasonable bet as I'm essentially paying only .25 extrinsic value.
Bought a few ODT $2.50 puts for .10. Not getting filled on all of it. They are evidently winding down operations and it will hopefully keep sinking to zero. Very cheap YOLO bet.
Bought a few ODT $2.50 puts for .10. Not getting filled on all of it. They are evidently winding down operations and it will hopefully keep sinking to zero. Very cheap YOLO bet.
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Bob Sacamano
Footballguy
Sand
Footballguy
I definitely lost today, but have a month for it to come back ITM. Tiny money, so if it hits, YOLO. If not the odds were pretty decent and the universe hates me.
KGB
Footballguy
NIO -$13,000 LOSS
RIOT 4/1 + $11,500 WIN
RIOT 4/9 $59C + $2590 WIN
BLDP 4/16 $25C Daytraded +$3000 WIN
RIOT 6/18 $60C -9%
RIOT 1/21/22 $42C +5%
CCL 7/16 $25C +16%
PLTR 8/20 $30C -$6,000
PLTR 11/19 $35C -$5,800
PLTR 1/21/22 $50C -$8,000
DKNG 10/15 $100C -7%
UWMC 4/16 $10C -$2000
UWMC 4/16 $11C -$10,000
UWMC 5/21 $14C -$9,200
UWMC 1/21/22 $15C -35%
But 
and well see if this can turn around. Only the WIN and LOSS are closed.
Still up trading believe it or not, but most profits are gone.
RIOT 4/1 + $11,500 WIN
RIOT 4/9 $59C + $2590 WIN
BLDP 4/16 $25C Daytraded +$3000 WIN
RIOT 6/18 $60C -9%
RIOT 1/21/22 $42C +5%
CCL 7/16 $25C +16%
PLTR 8/20 $30C -$6,000
PLTR 11/19 $35C -$5,800
PLTR 1/21/22 $50C -$8,000
DKNG 10/15 $100C -7%
UWMC 4/16 $10C -$2000
UWMC 4/16 $11C -$10,000
UWMC 5/21 $14C -$9,200
UWMC 1/21/22 $15C -35%
But and well see if this can turn around. Only the WIN and LOSS are closed.Still up trading believe it or not, but most profits are gone.
I can't quite follow what you are doing / saying here. I'll just opine that in times when implied volatility is quite high, it pays to be a seller of options rather than the buyer. I think you are the buyer in most of these trades and those would be indicative of the most highly-leveraged, boom or bust options plays. I buy them now and again, too, but probably sell puts or sell calls five times as often as I buy them. The sellers flip side of that option-trading coin is to hedge risk, reduce volatility and to cap profits or losses. You might want to consider a more balanced approach.NIO -$13,000 LOSS
RIOT 4/1 + $11,500 WIN
RIOT 4/9 $59C + $2590 WIN
BLDP 4/16 $25C Daytraded +$3000 WIN
RIOT 6/18 $60C -9%
RIOT 1/21/22 $42C +5%
CCL 7/16 $25C +16%
PLTR 8/20 $30C -$6,000
PLTR 11/19 $35C -$5,800
PLTR 1/21/22 $50C -$8,000
DKNG 10/15 $100C -7%
UWMC 4/16 $10C -$2000
UWMC 4/16 $11C -$10,000
UWMC 5/21 $14C -$9,200
UWMC 1/21/22 $15C -35%
Still up trading believe it or not, but most profits are gone.
leftcoastguy7
Footballguy
If a guy wanted to gamble that the value of Ethereum will be very much higher in a year from now... Best way to do this using options?
(dumb to buy a year-long option?)
(dumb to buy a year-long option?)
Sand
Footballguy
If you want a leveraged bet, then yes, buy something that fits your timeframe. You're going to be paying a good bit for the variance and the time, though.
I don't even know if you can trade options on Ethereum. Anyway, my question for you is: when will this rise take place? Do you think it'll be a steady climb over the next 52 weeks or is there a catalyst on the horizon that will cause it to shoot up? If this was a traditional stock and you suspected that it would steadily climb over the year, then I would recommend buying deep in-the-money calls to get some leverage for your investment with less risk. For example, replace Ethereum with AAPL for a moment which is trading at $120 more or less. Let's say you think it will be trading at $200 in 15 months time. You could buy out-of-the-money calls for June 2022, like the $150 strike calls for $800 per. If AAPL hits $200 by then, those calls are worth $5000 per and you get a six-bagger. Good deal, but it is a high-risk, high reward investment. Instead, pay $6000 for a call with a strike of $65. Big outlay in front, and your call will only be worth $13500 in that same scenario (a 2-bagger) but the risk is off-the-charts less. Do you want high risk / high reward, then do the former. Safer but surer returns, do the latter.
Better yet, those calls on Ethereum (if they exist) will be way more expensive since it is volatile. Use shorter-term plays, especially if you think a catalyst is coming up. You could always, you know, just buy it and skip options. Might make sense on such a volatile play to begin with.
Appreciate your candor. I'll add that you can keep buying your calls and puts, but one other strategy is to use a spread which limits your losses (and caps your gains). For instance, you can buy a call if you are bullish on a stock but also sell a higher strike call which means your profit is capped at that level, but you net some premium by selling the further-out call. Tends to reduce premiums on the order of 10% - 30%, depending on lots of factors. I am not a huge proponent of buying call spreads because they do limit the boom plays, the extra premium bump is not huge, and also they can be a pain to get into and out of. But hard core, professional traders use them a lot, especially when premiums are rich.I'm new to options and I'm not saying anything, just kind of logging my plays. I think you are correct in lowering my options plays. its like B&Bs amazon anchor for me. I was a buyer in all of the trades. SO obviously hurting VERY badly so far.
Sand
Footballguy
Bought back my PLTR put today for 50% profit on the big up day (general consensus is to take the gain when it gets to that level). I'll wait until the next dip and sell a couple more.
ETA: PLTR has now drooped 3% and and that put 25%. Timing hero today. Want to mark it as this is probably the only time in my life I timed something right.
ETA: PLTR has now drooped 3% and and that put 25%. Timing hero today. Want to mark it as this is probably the only time in my life I timed something right.
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Bossman
Footballguy
Tough to make hay in this market the last few weeks...
As far as my options plays of late...
I'll just say that I'm about to be the owner of 200 shares of HGEN at $17.50 per. (Now trading at $15.38)
And I will also have put to me 400 shares of NNOX at $48 per ( now trading at $36)
HGEN I wanted to own anyway and thought selling a couple puts would be a clever way to get a discount.
NNOX was just a poor decision on what I perceived as a stock that was healthy with recent FDA clearance.
As far as my options plays of late...
I'll just say that I'm about to be the owner of 200 shares of HGEN at $17.50 per. (Now trading at $15.38)
And I will also have put to me 400 shares of NNOX at $48 per ( now trading at $36)
HGEN I wanted to own anyway and thought selling a couple puts would be a clever way to get a discount.
NNOX was just a poor decision on what I perceived as a stock that was healthy with recent FDA clearance.
Rattle and Hum
Footballguy
For income generators: I feel there is some decent premium to harvest in SLV. Trading at 25.35 and 6/18 $27 calls bring in $.48. That is 1.8% in 5 weeks plus potential 6% more in appreciation.
It feels like its going to bounce around $24-$28 while it digests latest move up. USD bearish trade which is admittedly getting a bit extended. Metals are prone to large moves down so plan accordingly.
It feels like its going to bounce around $24-$28 while it digests latest move up. USD bearish trade which is admittedly getting a bit extended. Metals are prone to large moves down so plan accordingly.
firstseason1987
Footballguy
Looks like I'm going to be owning a whole bunch of stuff soon...
Bossman
Footballguy
So $13 was a good choice for strike amount. Did drop below $13 for a day but Expired Friday at around $14.
So yeah, $1000 for me.
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