Still rolling tsla cc. Unfortunately my ****ty trading platform ducked me and I couldn't roll my 860cc so I had to wait till Monday to sell my calls. By then Tsla had dipped andi missed out on capturing some of those $$ and realizing a loss. Sold 930cc. Don't even want to look at my p&l but... Those are the breaks.

April 4 posted on discord Tsla may hit 1150 and sure enough hit it the following day. Right on cue, hit the top of the trendline and came down.

April 5 posted on discord that vix looking to make short term spike and would peak by april 14. Sure enough peak hit April 13 and started coming back down.

Sooooo the positives are that what I expect to happen are in fact coming to fruition. Tsla closed today at 977. Strong start to the week. I expected earnings to be good and after hours reaction strongly bullish. Option flow points to a strong Thursday BUT I have a feeling there will be a strong selloff like all good news reactions with Tsla. Target close lower week over week, somewhere in the neighborhood of 950. If not by the end of this week, then sometime next week.

Expecting a very weak month of May with target of 880 by June. Plan is to keep selling cc with strikes in the neighborhood of 25-50 lower than the previous week's close. So if we closer at 950 this week then will roll my cc to 925 for the following week, trying to capture a reasonable weight of extrinsic and intrinsic value.

However this turns out, there will be a valuable lesson. Lol. Worst case is that I can roll out to Jan 23 atm cc. I will be perfectly happy to get assigned at 1050 as my cost is still in the $475 range.

Still selling Tsla csp, nvda cc and rolling pltr. Expect to be selling GOOG CSP in about 2 months time.

If only... My 860cc would be nearly otm.

Oh well. 880 came much sooner than expected. Could possibly see lower to 775. Potential for false rally and then retest recent lows. Will be picking up shares if we do.

General plan now that I'm clear on nvda and pltr covered calls is to sell my cc ntm. I think we will consolidate for a bit and then hopefully +-$50 weekly moves on tsla. Still need to make up some ground on tsla cc therefore the aggressive play. Macd way down so a possible bounce to 900ish but overall bearish for near term.

Have not looked at my April realized but guessing in the neighborhood of -$20k.

So the false rally came and went. Pop to 950 and then down to low 800's. 895cc paid off big time. Also sold deep otm puts. Nvda 210cc. Could not sell pltr 11 but they would have paid off also. Net somewhere around 8k for the week but not really counting until my trading account goes green. Will probably calculate at the end of May lol.

Did not pick up any shares. Gonna wait a little. I think high 7 is possible. Expect some consolidation with week over week in the -$25-75 range as it trickles lower. BUT... Also fully expecting spy to false rally hard to 443 targeting may24 and then run lower. Conflicted as to whether tsla will follow any spy rally.

Upcoming week plan is to sell calls ntm in the range of $25-50 otm based on this week's close so around 890-925.

You are crushing it this year man congrats!


I was wondering if Chino or someone could tell me if it would be worth taking my 2024 Calls and exercising them for my $25 SU calls. I'm interested in getting the dividend now that they've raised it to $0.42 quarterly and I've got 10 calls. Would having my calls "covered" during the ex dividend date/drop in market cap essentially be the same as collecting the dividends directly? I'd rather just keep selling CCs than pay the $25,000 to exercise just for the dividend (even if the dividends are around 1,600 yearly).

You would be better off to 'sell to close' than to exercise since there is $1.00 of extrinsic value left on the contracts, in other words it would cost you $1.00 LESS per share. Factor in your capital gains in either scenario to get the true difference.

Div will be about $0.36 so stock is going to dip at least that much the following day so as of current price 36.90-0.36= $36.54.

If ex Div date is this week for example, you could sell atm cc for $0.65.
Therefore you're better off to stc your calls. Then repurchase and sell atm calls. Then sell atm csp to repurchase.

The main problem is that strangles don't always work.

ITM strangles are more expensive so profit obviously will be less. Probability of profit will be greater.

OTM strangle has lower probability of profit but potential profit can be greater.

Strangle essentially doubles your entry cost but increases your probability of profit by double, assuming the same strikes. It does not increase your actual profit $ though, all roughly speaking.

The surest way to lose money on options is to buy to open

i forgot to post a followup, i woke up whilst in vegas, having a bad feeling about this, April 21/22nd or so so i closed it at breakeven, glad i did but i sold a 25p for 5/20 5 minutes before close on earnings day, closed it out for tiny profit. I think i will take a break from trying to wheel bros for a while...

When is the market ideal for wheel vs something like a credit spread? I had no idea the misc had this options thread

Wheel isn’t much good when market/your stonks are down more than 30% because nobody is going to pay you any good money for those strike prices that you paid for the stonk when you got assigned or bought it.

Bear call credit spread is good in that situation. And you are supposed to protect/hedge your position in case of a sudden spike up in price of the stonk by setting a buy order. Example:
Stonk is $100
You pick a stonk you want to own anyway (always and only such stonks)
If you think short term stonk is going down or flat (and long term it’s going up) you execute bear call spread to take advantage of the bear market:
You buy a $130 call
Sell a $110 call
Collect premium.
Put a buy order 100 shares at $109 so that if stonk rises computer will buy 100 shares for you. The worst possible outcome is that you simply end up in a covered call position. It’s hard to lose money with this strategy.


And easier way is to wheel but conservatively, sell puts at 0.14 delta, and roll them again and again. I think some guys ITT do that.

Another common way is to wait, then when you think stonk has bottomed out and you like the price and market conditions have changed (aka Jerome signals a reverse course) you can send a rescue mission: start selling puts on the stonk again, and if you get assigned you lowered your cost basis etc.

Rant/

get the lube ready boyos...

My XOM $100c just went itm let’s gooooo

Let's ressurect this sumbish

15 contracts, all cc and csp expiring this week. Total net of about 4200 if they expire worthless.

Let's do this!

TSLA, NVDA, GOOG, AAPL

Sold my first 2 CC ever today. GOOG Aug5 117s for 2.65ea

all expired worthless.

Following week picked up 3000 goog at 108. Dipped to 105.50 so managed my shares by selling a 105.50 covered straddle for 4700 net. Shares got called away.

Swing trade on goog Monday morning for 3000 net.

Have tsla 950cc aug19 x2. Trying for 875csp expiring this week see if it dips and fills @12

New goal moving forward is 3k/ week

TSLA Aug12 950cc X2
GOOG Aug12 123cc x2
GOOGL Aug12 122.50cc x2
NVDA Aug12 160csp x10

Still holding
TSLA Aug19 950cc x3

Averaging my exist holdings, looking to net roughly 3600 for the week.

All expired worthless.

STO
TSLA Aug19 845CSP

You are crushing it! GJ dude!

Ty men

8/12 BROS $51cc expired worthless covered dinner out with the gf tonight , forgot about this thread

Expired worthless as well as, TSLA Aug19 950cc x3.

Still holding TSLA Aug26 1020CC x2


Averaging my existing contracts, net realized about 3900 for the week

I'm curious are there experienced vol traders ($500k+ account balances) that want to share notes on trading vol on margin? msg me privately thanks

Still holding
TSLA AUG26 1020CC X 2

STO
TSLA AUG 26 940CC X 3
TSLA SEP23 725csp
Oxy SEP23 60CSP X10

Averaging long dated contracts, looking to net 4k this week

All of this week's contracts expired worthless.

TSLA 309.68 will be the number to watch in the upcoming days.

Nice. Seems like you've been doing pretty well.

My biggest option play right now is a 180-290 strangle in NFLX, Oct 21 expiration. took in $9.35 in credit.

Sold Sept 2 GOOG 117c for $1.10 this morning

Surprised no one called me out on this post. I'm in a different time zone and jet lagged. Totally thought yesterday was friday and preemptively posted my winning positions.

Fraud confirmed lol

If you want to profit from csps and ccs by closing them early - do you get the same movement in the premium if you buy longer dated options

For example if you open a cc 1 month out for $100 premium and price drops by $5 on the underlying so you can close out cc early for $50 profit - does the same thing happen if you buy a cc 3 months out for $300? So if the price drops by $5 the cc can be closed out at $150 profit?

Or is the cc less sensitive to price changes the longer dated the expiration?

Option price movement, assuming all other Greeks remain unchanged, is determined by delta. If you don't have access to option Greeks you can use optionistics.com.

So if a contract has a delta of .5 (atm strikes will usually be near this regardless of days to expiration) then a $1 price movement in the stock will equal $0.50 change in option premium. A delta of .20 will move $0.20 for every $1.00 in stock price movement.

Also handy to note is delta roughly equates to probability the contract will expire itm. Therefore a contract with a delta of 20 has a 20% chance of expiring in the money.

so i plugged in some values.

i compared a ticker with september 16th expiration vs december expiration, same strike price.

the premium for september was $115, while the premium for december was $490.

i looked at what happens to the price if it drops to say, $20, on september 12th.

for the $115 option, i could close it at 100% profit at that price/date, so $115 profit.

for the $490 option, i could close it at 47% profit at that price/date, so $225 profit.

what this tells me is that if i buy a super long dated option, i will take on less risk and if i time it right, obtain a much larger profit closing early.

for example if i buy the option for january 2024 expiry, the premium is $1,000. if i close it just as i did for the ones above, i would obtain a 26% profit, so $240.

why don't more people do this?