Jump to content
Fantasy Football - Footballguys Forums

Options Trading


Recommended Posts

30 minutes ago, Bossman said:

By "naked puts" you mean selling puts on margin vs cash backed?

Yeah, I agree that would be pretty hairy. I always make sure my account can handle the puts being put without a margin call.

Yep. 

Link to comment
Share on other sites

On 3/15/2021 at 6:55 AM, Bossman said:

By "naked puts" you mean selling puts on margin vs cash backed?

Yeah, I agree that would be pretty hairy. I always make sure my account can handle the puts being put without a margin call.

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.

  • Like 2
Link to comment
Share on other sites

5 hours ago, pecorino said:

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.

It's a sound strategy for sure.

Link to comment
Share on other sites

NIO -$13,000 LOSS

RIOT 4/1 + $11,500 WIN

RIOT 4/9  $59C  +65%

RIOT 6/18 $60C +90%

RIOT 1/21/22 $42C + 63%

CCL 7/16 $25C  +97%

PLTR 8/20 $30C   -33%

PLTR 11/19  $35C  -45%

PLTR  1/21/22 $50C  -63%

DKNG 10/15  $100C +13%

  • Like 1
Link to comment
Share on other sites

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%

Edited by KGB
  • Like 1
Link to comment
Share on other sites

24 minutes ago, KGB said:

 

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.

Link to comment
Share on other sites

 

26 minutes ago, Desert_Power said:

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.

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.:popcorn:

  • Like 1
Link to comment
Share on other sites

4 minutes ago, KGB said:

 

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.:popcorn:

It's certainly interesting to follow. Not trying to judge. 

  • Love 1
Link to comment
Share on other sites

4 minutes ago, Desert_Power said:

It's certainly interesting to follow. Not trying to judge. 

No worries.  UWMC is certainly a YOLO, so it should be a ride either way.  Wish me luck!

Link to comment
Share on other sites

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.

  • Like 1
Link to comment
Share on other sites

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?

Edited by NajehHejan
Link to comment
Share on other sites

1 hour ago, NajehHejan said:

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?

By.

By Monday morning. 

  • Laughing 1
Link to comment
Share on other sites

They wait until after hours trading ... just in case the stock makes a miraculous comeback ...

and then you will be "assigned" your shares.

Congratulations on your purchase.

(I've been there too many times ... see "Bossman - NERV board of directors")

  • Laughing 2
Link to comment
Share on other sites

4 hours ago, Bossman said:

They wait until after hours trading ... just in case the stock makes a miraculous comeback ...

and then you will be "assigned" your shares.

Congratulations on your purchase.

(I've been there too many times ... see "Bossman - NERV board of directors")

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”

Link to comment
Share on other sites

30 minutes ago, NajehHejan said:

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”

As far back as I can remember, I always wanted to be a trader.

  • Laughing 4
Link to comment
Share on other sites

5 hours ago, Sand said:

If these fears cause a nice dip (and with the high IV here) I'd be inclined to theta farm this.

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.

Link to comment
Share on other sites

On 3/19/2021 at 3:32 PM, Bossman said:

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.

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.

😎

Link to comment
Share on other sites

Sold a put on PLTR this morning.  Really wanted to capitalize on the drop in UWMC, but today was IV crush day.  Not worth it, so left it alone.  Good news is the put jumped 25% today thanks to IV going down - PLTR barely moved.

Link to comment
Share on other sites

6 hours ago, Bossman said:

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.

Link to comment
Share on other sites

8 hours ago, pecorino said:

That’s because earnings is coming. It could tank.

I curious as to how this GME earnings report will affect the stock price.

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

 

Link to comment
Share on other sites

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.

Edited by Sand
Link to comment
Share on other sites

3 hours ago, Sand said:

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.

Down to $1.22 with the price falling further. What the hell. Why not?

Link to comment
Share on other sites

1 hour ago, Bob Sacamano said:

Down to $1.22 with the price falling further. What the hell. Why not?

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.

  • Laughing 1
Link to comment
Share on other sites

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%

:kicksrock:    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.  

Link to comment
Share on other sites

11 hours ago, KGB said:

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%

:kicksrock:    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.

 

 

  • Like 2
  • Love 1
Link to comment
Share on other sites

12 minutes ago, leftcoastguy7 said:

(dumb to buy a year-long option?)

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.

  • Like 1
Link to comment
Share on other sites

33 minutes ago, leftcoastguy7 said:

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?)

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.

  • Like 2
Link to comment
Share on other sites

11 hours ago, pecorino said:

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.

 

 

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.:unsure:

Link to comment
Share on other sites

7 hours ago, KGB said:

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.:unsure:

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.

  • Thanks 1
Link to comment
Share on other sites

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.

Edited by Sand
  • Like 1
  • Love 1
Link to comment
Share on other sites

  • 2 weeks later...

UWMC about to expire down $2500

Riot + $188

CCL + $369

DKNG $100 Call - down $3900 so far expires 10/15

Riot + $570

PLTR UP big today, but overall down 19K over 3 options so far.  1st expires 8/20/21

  • Like 1
Link to comment
Share on other sites

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.

Link to comment
Share on other sites

14 hours ago, KGB said:

PLTR UP big today, but overall down 19K over 3 options so far.  1st expires 8/20/21

Sold another $21 PLTR put today with the 7% drop.  The last two days made for a nice variance jump to sell against.

  • Like 1
Link to comment
Share on other sites

I decided to start playing around with these.  Sold a May $15 HGEN Put earlier this week.  Ironically, I tried to do so on Friday and had to request level 2 options clearance, and because of the delay and subsequent price drop I ended up getting an extra $40 or so.

  • Love 1
Link to comment
Share on other sites

  • 2 weeks later...
  • 2 weeks later...

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.

Link to comment
Share on other sites

  • 2 weeks later...
Posted (edited)
On 4/26/2021 at 2:49 PM, Bossman said:

Sold 10 put contracts

5/21 MVIS $13 strike paid me $1.10

Stock has been on an absolute rip today. Now trading mid $25.

$13 Seems like a safe play and 10 paid me $1000. Almost free money.

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.

 

Edited by Bossman
  • Like 1
Link to comment
Share on other sites

Sold 10 HGEN puts, 7/16 $17.50 strike.

Paid me $2.40 (per share = $2400)

Stock has been trading in the $18-$20 range for a couple of months now.

My break even is $15.10

($17.50 less $2.40 premium)

Seems like a decent play.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
  • Create New...