I've got 20 Sofi CCs at 15/17.5 and 40 CSP at 10/12.5 all were green todayWish it would have held $12.50 but really I'd buy the $12.5s if need be. I think I've got 15 of those so 1,500 shares. pls god don't let my $10 CSP go deep itm

Update for the week (and doubtful anything will change by EoD)

Closed out my JWN spread for +350% (ded fkn srs). I could have either exercised and rolled the short leg out and managed from there, or held the long and rolled the short to next week for a slightly higher strike, but risked a decline in the market and quickly blow my long leg up. I feel pretty good about how this played out.

TSLA has been a wonky mess, but I am keeping myself busy with it. I had a 3/4 $855cc that was -150% at some points in the week, and now its sitting at 80% green. I am going to let it expire regardless of if it is ITM or not. I am 90% sure I will take assignment of the $900CSP vs rolling. Opened a 3/11 $885cc @ $15.

All contracts expired worthless including Tsla 745csp. Net for the week just over 2800.

Nice. I think your 900csp could work either way... roll or assign.

Thanks brah. I'm taking assignment. The 3/11 $895cc is already at +33% smh lol.

I don't think I'm doing anything next week, and going to wait for the rate hikes to go into effect, and see what happens with war. That said... I might look into RKT 3/11 puts, as they have their ex div date 3/8, and will by default drop by $1.01, but who knows if there will be a run up or not...

I’d legit sheit my pants getting assigned TSLA at $900 in this market.

But he gotta do what he gotta do, I guess.



What’s your opinion on selling covered calls below my cost basis? Got a few small positions that are under water. Debating this tactic.

Choose strikes based on delta instead of premium and you should be ok. I look at 15 delta for weeklies, sold on Monday after first hour or so after open. I research what strike is 15 delta on the weekend before. If it dips on Monday I sell the 15 delta strike as if it had opened at Friday's close. Quite often the dip is a fakeout and if you sell based on the price dip, you can get caught.

I sell near open because iv is higher therefore premium is higher.

If you are going to sell further dated contracts you should t&a to determine where you think it may go.

As long as you are not trying to be aggressive you should be ok.

Of course it shoots up today and could have gotten out even.

Effective CB is $855 (we’ll actually the $855cc I had that expired was @ $20 so really $855). Already opened an $895cc for 3/11 @ $15. Assuming it expires worthless my effective cb is now $840 ($820 if you count the previous cc). Rinse. Repeat. Obviously not sure fire but ways to manage it.

Also re selling calls below your cb, like user said, it’s best to look at delta, but there are times I’m definitely more aggressive on stocks that’s I’m not happy with. And if it’s looking fooked leading up to expiration day I’ll have a few choices…

- roll out even if it means as far as hell

- this is one is a really aggressive move but I’ll look for a CSP that is way out of the Money but would result in assignment but then get called away and the premiums would result in a “wash” while leaving my shares in tact

- or finally let them get called away and set aggressive CSP’s to get back in (note, my trading account is mark to market so wash sale doesn’t apply to me, and my Ira isn’t subject to wash either)

I was prepared to do that last one with PLTR at $12 and Chpt at $15 this week. Both failed smh

What is this guy missing?




He is trading poor man’s covered call totally the opposite of what we are taught to do:

- he buys the long leap only 3 months out, thou normal advice is a year or better 2 years out.
- he goes for 75 delta or even 60 delta for the leap, which is nuts, since 80 or 90 is recommended
- he sells at the money 50 or even 70 delta short calls… wtf? 30 or safer 20 is recommended.

Does anyone understand this or tried this? Does this work?

Can’t watch the vid but are his long legs deep ITM? If not he runs incredible risk selling atm calls since if it has a run up, the intrinsic value on the short leg will exceed the extrinsic value of the long leg and create a huge fukking mess.

Plug something similar into optionsprofitcalculator.com and what it could look like.

Also pisses me off to see people call anything less than a year a “leap”

can't say. I stay away from pmcc. You are essentially using leverage with your leap and time against you. You can easily be under water even if you are deep green on your leap.

I try to simplify my trading as much as possible so that I am 100% aware on my strategy.

PMCC is one setup for a diagonal debit spread. It's popularized by tasty trade. There is more than one way to skin a cat.

His trade is going to be much more theta/Delta aggressive for his BPR.

Personally, I don't see the benefit of putting the long at such a short expiry (or referring to this Frankenstein trade as a PMCC)

$12.5 CSP are April
$10 CSP are July

Closed March $15 CC for 0.06
Opened May $15/$17.5

Will open $13 or higher calls soon expecting to get assigned.

I’m guessing he is saving money buying shorter expiry calls?



Speaking of the danger of pmcc, is there really a danger if you go for long call 2 years out with 90 delta, and selling short calls with at least 30 delta?

Shouldn’t the rise in price of the long call always protect you if you get assigned at some point on your short call?

Can you post a play as an example?

If you're actually cash secured, then either is probably fine. But I'm pretty sure Chino is on margin, in which case the buying power to hold a short put should be less than 100 shares of stock, so I tend to lean towards rolling for as long as you can still collect more credit.Depends on your assumption on the stock. Of course you CAN sell a call below your cost basis, but if you aren't collecting enough credit to at least break even if it were to be assigned at that strike, then you run the risk of being locked into a loss if it comes back and you're assigned. As others have said, selling conservative deltas can help mitigate that risk.

Sold contracts near the open and got some decent premiums and strikes.

STO
TSLA mar11 935c x3
TSLA mar11 730p
NVDA mar11 237.50c x2
PLTR mar11 13.00c x10

Friday I:

STO
TSLA 3/11 $885c @ $15

Made things spicy with

STO
TSLA 3/11 $865c @ $15
BTO
TSLA 3/11 $875c @ $12

and

STO
GOOG 3/11 $2450p @ $6

Probably Apple is a better example, or some low IV stock without dividend, but let’s say I buy an AMD $50 strike leap for Jan 2024 for $5.9k, delta is almost .9
I would sell $120 strike monthly calls and make $225, that’s a .2 delta,

After 2 years I make all my money back with just premium alone. Then presumably I would sell my leap for big profit. So this is being super paranoid about getting assigned. Can definitely sell a .3 delta to pick up much more premium. So, if I get assigned on the short call, my leap should moon due to that .9 delta, no? Then just buy 100 shares to give them to the buyer of my short call, and close the leap myself for overall profit.

In that scenario, the LEAP is considered to have an effective purchase price of $109/share. Selling a $120c is well above your cost basis. Literally ZERO upside risk.

This week was interesting, and looks to end with a big fukk you. I opened some new positions including a lulu call as an earnings play and am working on weekly short calls to bring down my CB so I can let it play out at a discount.

Closed positions (including what will absolutely happen by EoD):

TSLA 3/11 $890 short call: +$1100
TSLA 3/11 $875 long call: -$600
TSLA 3/11 $865 short call: +$1500
GOOG 3/11 $2360csp: +$510
LULU 3/11 short call: +$250

Realized gains for the week $2760

Next week I have expiring options (all opened this week):

TSLA 3/18 $890 short call @ $15
TSLA 3/18 $700csp @ $6
LULU 3/18 $$312.5 short call @ $4.5

I see, so I’m guessing if a stock price pops I just have to take into account that my .9 delta leap that I bought would pop $9 for every $10 pop of the stock price thou, correct?

All expired worthless. Net just over 2350 for the week.

Nicely done fellas!

I am trying to figure out how to get some PMCC on my SU $25 strike 1/2024 calls I acquired for $380/each. I had some April $32 strike I bought back when oil was looking to break $100 for a $30 loss on each, but that saved me a lot in the long run. Anyone think its worth trying to sell covered calls against these yet or should I just sit on them and let SU keep doing buy backs and crush earnings for awhile? I figure they are legitimately a $35 stock right now, but I can't figure why its still trading in the $31-32 range. Would y'all sell some $35-40 strike calls for January or something perhaps? I'd like to get some cash flow out of this position.


Also, when y'all roll positions out do you wait until you are about to get exercised? I've got 15 SOFI CSP for April 14th at $12.5 I got paid $2.10 for the privilege of holding and I think they are like $4.10 right now. I really don't mind getting exercised, but I think it might be the smarter play to just roll down out and use funds elsewhere. I sold 20 CCs for May 22nd from $12.5-17.5 that will net be about $1,000 to soften the blow.

I don't know enough about oil and SU to really comment. I think what you do has a lot to do with where you think oil is going to go. Jan 35c are at 47 delta and 40c at 34 so those strikes are pretty aggressive imo. Point is, what are you happy to sell at?

Rolling? I've re-evaluated my thinking. I used to be a never roll guy because opportunity cost was a big factor. But now I think, consider rolling when your strike is near the money. If there is still time and you think the stock will dip a little, then my strategy is to wait up to 55 delta and hope the extra time will bring it down. Basically give yourself a little time to see if it will reverse. But it's crucial that it does NOT go deep in the money before rolling. ATM is ideal because that is max theta and you are trying to capture as much extrinsic value on your roll while still remaining profitable or break even on your roll. If you wait until it's deep ITM (because say you waited until expiration) then you have a lot of intrinsic and then you will have to roll further out in time and that equals opportunity cost.

What I've been watching lately is the weekly open and close (since I trade weeklies) to see what the price fluctuations is. TSLA for example does not 'normally' fluctuate more than $100 from week to week BUT intra week high and low it can happen often. The strikes I'm selling are currently around 15 delta which puts it about $75 OTM. Therefore, if I'm forced to roll I know that selling atm for the following week will likely get me out of the trade within one or two weeks. The short of it is you will need to develop your own strategies as you learn how your stock reacts and how your knowledge of options evolves.

Wheeling AMD, thinking I might actually get assigned at $94 by Friday

lol what a crappy market, don’t know if I will take it or roll

I'd wait until at least Wednesday to assess. Theta burn will start to kick in, but really ramp up Thursday. As long as it doesn't hit $90 by then, I'd wait until the last minute to roll (assuming you don't want to get assigned).

jeez... thankful I set up the short calls I did last week. The TSLA call is 90% green, LULU 85%, but the TSLA csp is -20%. Looks like I'll just be riding this week out, and looking for an opportunity to set stuff up for the following week.

Sure, the danger is that you have a higher beta weighted Delta, and you are also long vol.

Consider that if you are putting on a PMCC right now, you are likely buying your LEAPS in a period of high IV. So volatility collapse is a risk just as it can be a benefit, offsetting unrealized downside losses in a manner that a stock-collateralized CC wouldn't.

Back in October I had a PMCC on AMD with the usual parameters, one month out, 50 Delta spread, etc. They rocked their earnings and I hit max profit. But if I had tried it from that month on the position would have tanked moving into Jan/Feb. If this happens you have to be prepared with cash on hand to roll down your LEAPS and continue selling. And it is not easy (mentally) to do, using PMCC methodology to keep selling calls that don't really limit your downside much while you are also below cost basis and lots of FUD in the market.

I will tell you that I left PMCC behind and now do diagonal debit spread with differing parameters as the primary strategy in my portfolio. I always have short weekly calls on them and I don't let them get assigned thanks to my management strategy. I sell them as close to ATM as I can get. There is some short term upside risk with this variation, but it really is the ideal strategy for this kind of kangaroo/sideways bearish market. I took my short weeklies off for one week in Jan, trying to swing trade and reestablish on a green-day. Then my LEAPS dropped about 10% in value, which I've managed to climb out of at the end of Feb by selling my ATM weeklies. In the meantime my underlying has gone down another 40-50%.

I do also maintain some ratio-backspreads in whichever direction I think my risk is higher in. And I'm thinking there will be a time in the future to reduce my # of lots and convert to short vol with CCs instead, but I'm holding out on that for now. I want to see just how effective rolling out ATM short calls is in a rally. My backtesting says it can work with the right management, but I haven't forward traded that environment yet.

I can't decide what I want to do with my SU position hence my dilemma. I'm interested in income from monthly calls, but don't want to miss out on upside lmao. Right now I think there is a lot more upside so I'm holding off on selling CCs. I definitely need to get the ball rolling my April or so since I figure oil should be peak by June or July.

Sofi I am looking at plain ol' rolling out further away at the same strike to at least get a credit and hope that with time and improved future profitability it will turn around. Someone had done some quick math and said their book value was around $5.20ish or something of that nature. If I can get my basis right around $7.50 I'll be fine. There isn't any reason for me to take the shares at this point. Right now covered calls aren't even worth looking at premiums are trash. With somewhat high short interest there is a decent likelihood if things start turning around share price will move in a hurry.