Stock Market Options, Calls, Puts, and Spreads.

[LV Koopa]

You can start trading without knowing the Greeks, and in fact I usually suggest people do so. Once you understand the trading interface itself and just getting your feet wet your good to go. Just use small amounts of money.

From there, just start by learning about Implied Volatility and IV rank. Once you get this, Delta and Theta are the main things you are concerned with. And there are tons of strategies that play on them. Writing covered calls is a popular way to get started as it basically gives you a relatively "low risk" way to earn money while the market will hammer home that options are about direction and time value.

Also them dudes on WSB are insane. A LOT of crazy morons over there but dudes are hilarious. Do not do margin trading unless you are SURE you know what you're doing. Seeing thousands of dollars gained and lost in a few days is not for everyone.

 

[Swirv]

https://imgbb.com/

I’m in the game now

I’ve been watching this stock for two months and it hasn’t even approached my limit order. If COVID holds off in Singapore I should be good.

 

[TallMan_J]

My orders for Salesforce didn’t go through. I tried for two days and nobody was selling what I needed at the price I wanted.


Ended up making another play with Walmart that expires on 08/07.

 

[LV Koopa]

My orders for Salesforce didn’t go through. I tried for two days and nobody was selling what I needed at the price I wanted.


Ended up making another play with Walmart that expires on 08/07.

My puts on Spirit Airlines have been in the red for weeks. The Feds bailing them out ended my chapter

 

[Macallik86]

My puts on Spirit Airlines have been in the red for weeks. The Feds bailing them out ended my chapter

I gave up on my shorts (GRPN, CBRE, etc) today. Buyers gon buy so i gotta just follow the trend.

 

[LV Koopa]

I'm about to sell them too and buy far OTM puts for cheap. The market going up is an illusion propped up by Fed Reserve money. Most of these companies are still hemorrhaging cash and we might have another outbreak.

Just need to time it right

 

[Macallik86]

I'm about to sell them too and buy far OTM puts for cheap. The market going up is an illusion propped up by Fed Reserve money. Most of these companies are still hemorrhaging cash and we might have another outbreak.

Just need to time it right

This.

I am trying to find that sweet spot where the markets finally start heading lower, but the realization/fear hasn't fully set in. Option pricing is going to go through the roof when it finally sets in, so a lot of straight put plays will be overpriced imo. I want to sit down and plans things out in a smart way. Here is what I am thinking so far:

If I get in before the markets are spooked: Calendar Put Spread on the SPY maybe? The dream is for my short puts to expire worthless and then long puts blow up in terms of price as insurance becomes more expensive thanks to the VIX spiking.
If I get in after the markets are spooked: Bear Put Spread to cancel out the volatility. Will probably look at some excessively overbought stock that have ran higher an ungodly amount (TSLA, KODK)

 

[LV Koopa]

Getting in before the markets are spooked is the way I'm going. I just haven't shorted the SPY yet. I've shorted GE, Spirit, and a few others. Some have paid off but this market is just too ridiculous over the last ~year.

I generally look at things from a macro view, think about what will happen and what companies will profit or lose.

Good luck fukking with Tesla

God knows how the fukk a car company that produces less than Toyota boomed so much in a recession. I like Elon and Tesla long term but this shyt crazy. A LOT of people have gotten crushed buying puts and short selling them and to be fair they are asking the right questions.

 

[Macallik86]

Forgot about a website I use as a mini cheat sheet. They plot Implied Volatility (how much investors think the price will move) vs Historical Volatility (how much the price has actually moved in the past 30 days).

IV > HV = Overpriced
IV < HV = Underpriced

So, for example, it looks like the TSLA options are actually under-priced relative to the actual volatility in the past 30 days:

 

[TallMan_J]

Getting in before the markets are spooked is the way I'm going. I just haven't shorted the SPY yet. I've shorted GE, Spirit, and a few others. Some have paid off but this market is just too ridiculous over the last ~year.

I generally look at things from a macro view, think about what will happen and what companies will profit or lose.

Good luck fukking with Tesla

God knows how the fukk a car company that produces less than Toyota boomed so much in a recession. I like Elon and Tesla long term but this shyt crazy. A LOT of people have gotten crushed buying puts and short selling them and to be fair they are asking the right questions.

Walmart just announced corporate layoffs coming. It's down OVER $2.00 today. fukked up my whole play. I'm closing this shyt. I'm down -$86. I'm still up overall, but damn.



You win some and you lose some.

 

[LV Koopa]

Walmart just announced corporate layoffs coming. It's down almost $2.00 today. fukked up my whole play. I'm closing this shyt. I'm down -$86. I'm still up overall, but damn.


You win some and you lose some.

https://www.ally.com/do-it-right/investing/what-is-implied-volatility/
Spirit Airlines FINALLY stopped the fukkery and announced they may furlough 30% of employees after burning $100 million in operating costs every month.

I have puts bought over 2 months ago sitting at $12 and just re-upped for December puts at $10.

shyt dropped from $18 down to $16 but YOU KNOW some bullshyt gonna happen and the price rockets to $20 even though they have no customers

 

[Swirv]

Got a $8 call on spxu for 12/18/20.

like y’all I think the markets will wake up and have an oh shyt moment.

 

[DaCount]

It's some money to be made on SNAP calls at open tomorrow. Tik-Tok news will effect SNAP in a good way. 23.5 Strike is good.

 

[DamienWayne]

didnt a kid commit that recently by fukking up some option trades ?

 

[LV Koopa]

didnt a kid commit that recently by fukking up some option trades ?

He did, but the trade wasn't fukked up. He didn't understand what he was doing and though he lost ~$700,000. IT was the software telling him his options were -700K, but he was using leverage, and could only lose as much collateral as he put up. So when the platform would've updated the next trading day he'd see his actual loss. Probably something like 200K or whatever.

Then again, only experienced people should be using leverage when trading anyway.