Stock Market Options, Calls, Puts, and Spreads.

[Swirv]

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[Swirv]

My long on spxu is down about 50cents. Guess I’m wasting my time fighting against the trend. I haven’t been able to get it right with this security yet going back 2 years.

 

[Swirv]

Bought $15 puts on prpl for 8/21 @.10

They missed their earnings majorly and there’s rumors that is what pumped to begin with.

 

[Swirv]

shyt 2/3 of my plays have turned against me. I knew the prpl one was risky but I thought it was really about to have the ass fall out. That spxu still has time. My flex is dropping in price but I’m still up so I might sell it. Been reading more about debit and credit spreads. It’s time to start limiting risk like it was alluded to early on in this thread.

I can’t lie I like the riskiness of uncovered positions but I like winning more

 

[LV Koopa]

shyt 2/3 of my plays have turned against me. I knew the prpl one was risky but I thought it was really about to have the ass fall out. That spxu still has time. My flex is dropping in price but I’m still up so I might sell it. Been reading more about debit and credit spreads. It’s time to start limiting risk like it was alluded to early on in this thread.

I can’t lie I like the riskiness of uncovered positions but I like winning more

breh you sound like you about to go deep into the rabbit hole

Seeing those numbers pop green is an amazing feeling

 

[Swirv]

breh you sound like you about to go deep into the rabbit hole

Seeing those numbers pop green is an amazing feeling

I’m teetering but I got family so i gotta chill

 

[Macallik86]

Starting to swing trade options a bit more again. There is no other financial instrument that increases your profits as your position goes deeper in your favor, and decreases when it goes less in your favor (thanks to the Delta) but at the same time, the market isn't as liquid as it could be for all stock. I need to come up with some hard/fast rules for trading options. So far, off the top of my head, I am looking for the following:

• Open Interest of at least 1,000 contracts
• The spread between the Bid and the Ask is a max of 10% of the total option cost. (Ie if the contract costs $5, then the max spread should by $5.00 x $5.50

Yall brehs got any rules for trading options?

 

[ryderldb]

I’m into LEAPS at this moment. Gives a lot of time for a stock to rebound if it starts sinking a bit.

 

[Macallik86]

I’m into LEAPS at this moment. Gives a lot of time for a stock to rebound if it starts sinking a bit.

I was reading up on LEAPs over the weekend. Apparently, because the interest rates & volatility are so low, the prices are historically low. My understanding is that you can be directionally wrong on some calls but still potentially profit if there is a change in interest rates or the markets getting more uncertain.

 

[Swirv]

My call credit spread on gdot 60/50 sept. 18 was looking funky at the beginning of the week but thank you sell off. Hope this holds up and my call on spxu $8 December 12 picks up.

 

[Macallik86]

Got a bear put spread on TSLA.
Sold the $380
Bought the $400

Expires next Friday. We shall see..

 

[Swirv]

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I’m thinking of placing this Monday afternoon. I’m attracted to the high reward to risk factor. The only thing I’m concerned about is implied volatility is kinda high on each side.

What are y’all thoughts?

 

[Macallik86]

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I’m thinking of placing this Monday afternoon. I’m attracted to the high reward to risk factor. The only thing I’m concerned about is implied volatility is kinda high on each side.

What are y’all thoughts?

Based on what I've read, selling premium is inherently good for these leveraged ETFs:

[...]
In fact, leveraged ETFs, given enough time, all go in one direction-down. This is due to the nature of volatility. Consider the following example.


Janet Yellen gives a hawkish speech, thus worrying investors about interest rate hikes and causing gold stocks to crater, falling 10% in a day (for illustrative purposes, assume the VanEck Vectors Gold Miners ETF (GDX) falls from 100 to 90). The next day, Yellen "walks back" her comments, causing markets to reverse their moves, with GDX rallying 10% (from 90 to 99). So the gold stock investor is down, but not by much, while someone short gold stocks is up the same 1%.

Now consider the popular-and wonderfully named-leveraged gold stock ETFs from a firm called Direxion, which offer 3X daily exposure to GDX. The Direxion Daily Gold Miners Index Bull 3x Shares ETF (NYSEARCA:NUGT) went down a whopping 30% the first day (from 100 to 70), then rallied 30% the next day to…91. As you can see, despite the index having barely budged, the leverage factor has been ruinous to the long gold investor.

But wait, it gets worse. The owner of the Direxion Daily Gold Miners Index Bear 3x Shares ETF (NYSEARCA:DUST) (perhaps my favorite ETF name) was dancing in the streets after day 1, with his fund soaring from 100 to 130. But after day 2, the fund not only retraced that gain, but fell all the way to…91!

https://seekingalpha.com/article/4055732-selling-calls-on-triple-leveraged-etfs-easy-money

Looking @ the stats, Implied Volatility may have peaked for the month which means people long vol are slowly being bled out:

I like it as long as the bottom doesn't fall out. Not sure if you are going off of Technical Analysis or not, but it could definitely stay between your short legs based on short term support/resistance:

However, if the markets sell off, I am pretty sure the Nasdaq will fall fast and drag Semicondutors down with it, breaking $210 in a hurry.

 

[Swirv]

Based on what I've read, selling premium is inherently good for these leveraged ETFs:

https://seekingalpha.com/article/4055732-selling-calls-on-triple-leveraged-etfs-easy-money

Looking @ the stats, Implied Volatility may have peaked for the month which means people long vol are slowly being bled out:

I like it as long as the bottom doesn't fall out. Not sure if you are going off of Technical Analysis or not, but it could definitely stay between your short legs based on short term support/resistance:

However, if the markets sell off, I am pretty sure the Nasdaq will fall fast and drag Semicondutors down with it, breaking $210 in a hurry.

Thanks for your analysis. The lower legs def concern me in the event of a sell off. I’ve studied this stock for some time and it usually recovers its losses quickly. The dilemma is if it drops the day before expiration I’m screwed.

 

[Swirv]

Thanks for your analysis. The lower legs def concern me in the event of a sell off. I’ve studied this stock for some time and it usually recovers its losses quickly. The dilemma is if it drops the day before expiration I’m screwed.

Happy I didn’t follow through with this trade. Soxl closed over $245. Ultimately the fact that it wasn’t very liquid made me not place the trade.