*Official* Options trading thread: Why Alpha/Beta when you can Theta?

[chino3]

According to teamRKT they thought buffett / berkshire would announce in their last 13F holdings RKT lol

Those potatoes have been saying that buffett will be involved in some LARGE capacity for fukkin months. It's insane. This thing is range bound, and has great premiums for thetagang.

Been selling CC's on RKT, but tired of it. Next time it hits $24 im out. Stays almost perfectly between $20-24

what's your cost basis? If you're red, I get how frustrating it can be seeing that every day, even when making money on CC's. But the premiums are pretty dang good, I'd just keep wheeling unless you really want to just free up cash, which I completely understand.


unrelated, not sure how many of you remember me talking about possibly being out of work soon-ish, but had a good meeting with my client this morning. It's now only a 50/50 chance it goes through, but if it does, it won't be until June at the earliest. Also discussed bonussing me out for the remainder of the year (oof, 40% taxes right there...) with some small contingencies of course. All things considered, I am pretty fukkin happy!

[wrastler163]

Those potatoes have been saying that buffett will be involved in some LARGE capacity for fukkin months. It's insane. This thing is range bound, and has great premiums for thetagang.


what's your cost basis? If you're red, I get how frustrating it can be seeing that every day, even when making money on CC's. But the premiums are pretty dang good, I'd just keep wheeling unless you really want to just free up cash, which I completely understand.


unrelated, not sure how many of you remember me talking about possibly being out of work soon-ish, but had a good meeting with my client this morning. It's now only a 50/50 chance it goes through, but if it does, it won't be until June at the earliest. Also discussed bonussing me out for the remainder of the year (oof, 40% taxes right there...) with some small contingencies of course. All things considered, I am pretty fukkin happy!

im like $20.08, the weekly premiums for $24 strike sucked last i looked. Up to this week they were good, but now i don't want to get tied up in a CC'd. Think i'd rather just sell next time it hits $24 or whenever premiums are decent again

edit: just sold a rkt 2/26 CC. For whatever reason last week the premium was like $6 for a $24 strike

[wrastler163]

anyone in here got options on AAPL? phucking pissing me off lately. Got a $125 1/23 leap, was up $3k now red, and recently bought a 1/22 $160 call. When will the bleeding stop?

Also AMD being a little bitch too

[chino3]

im like $20.08, the weekly premiums for $24 strike sucked last i looked. Up to this week they were good, but now i don't want to get tied up in a CC'd. Think i'd rather just sell next time it hits $24 or whenever premiums are decent again

edit: just sold a rkt 2/26 CC. For whatever reason last week the premium was like $6 for a $24 strike

Just sell weeklies at $21 or $22. When my cb was $27, I was selling at $22 smh, but it recouped that loss pretty fukkin quickly. This thing can pop at any moment, so I get not wanting to be locked into something further out, but weeklies seem manageable for the most part.

anyone in here got options on AAPL? phucking pissing me off lately. Got a $125 1/23 leap, was up $3k now red, and recently bought a 1/22 $160 call. When will the bleeding stop?

Also AMD being a little bitch too

AAPL should rebound nicely soon enough. With LEAPs, best to plan for them to go red multiple times throughout their journey lol. At the very lease just hold until next earnings. IV will ramp up, and the price should run up as well.

[Travis99]

AAPL should rebound nicely soon enough. With LEAPs, best to plan for them to go red multiple times throughout their journey lol. At the very lease just hold until next earnings. IV will ramp up, and the price should run up as well.

What causes IV to increase.

[wrastler163]

What causes IV to increase.

general market volatility, earnings, and any or sort of catalyst/news

[wrastler163]

AAPL should rebound nicely soon enough. With LEAPs, best to plan for them to go red multiple times throughout their journey lol. At the very lease just hold until next earnings. IV will ramp up, and the price should run up as well.

yea im definitely holding for awhile, just frustrating. AAPL's been dicking around for over a month now. Was trading sideways now dropping. Just impatient lol

[roughinhouse]

got some pltr $30 and apple calls. Hope this week treats me well.

[chino3]

Time to load up on BA puts?

https://www.thedenverchannel.com/new...-safely-at-dia

[Carbonfibre]

Time to load up on BA puts?

https://www.thedenverchannel.com/new...-safely-at-dia

lmao.

that being said thank god nobody was hurt.

I don't think it will be affected by this. 777 is old plane. If it was 737 Max uff that would be bad.

Jan 27 after earnings BA dropped only 4% even thought they lost 830 737 Max orders last year which is insane.

[wrastler163]

Time to load up on BA puts?

https://www.thedenverchannel.com/new...-safely-at-dia

Speaking of BA puts, wonder how venom’s doing these days

[Travis99]

Ira

Roth or traditional?

[RobParks2M]

Just got rid of mine @ $13.00. I see it commonly swinging between $12.60 and $13.25, just going to keep wheeling it in between those prices I think

For some reason I can't bring myself to sell. Blows my mind it is hovering so low rn. I keep whispering to myself "pure ecommerce play pure ecommerce play"

[RobParks2M]

At some point I just get sick of staring at red srs. Especially something that shouldn't be red lol.

Same. Although I bagheld TGA for fukin years then tripled down like a month or 2 ago at 33 cents. Now hovering at $1.30ish and actually positive on my position overall despite initially buying at $4 like 5+ years ago lmao

[Carbonfibre]

Good thing I bought NIO calls last week lmao.


Having SPY puts otm 6 months out is good idea.



With crypto pulling back again.


All the related ETF are getting slaughtered.

RIOT / EBON / MARA.

I am thinking this is time to buy leaps on RIOT or MARA as crypto will bounce up again.

Picked up 20 NIO March 5th $65 strike. filled $1.8

NIO got crushed this week. It was $62 few times.

But damn Tesla dragging all EV with it.


That being said I suspect NIO will run up before earnings March 1st.


Planning selling before earnings.


Nothing is ever worth holding through earnings.


Roku went flat as soon earnings hit.

MM like to shake everyone out.

This was mistake.
Dumb move knowing that I even predicted Tsla is dragging all EV down.


Sold all of this at loss. $1100 loss.

Put in $1.4 and it didn't sell.

Finally filled at $1.3.

[chino3]

Taking advantage of this mess, and going kinda potato. TSLA 1/21/22 $1k @ $380 x2.

Don't think I will touch anything else this week. I have PLTR 2/26 csps expiring this Friday ($29 and $32), as well as RKT $19.5csp. Then a chit ton of things on 3/19. Gonna have to pull out a lot of cash for the tax bill, so can't over commit at this point.

[Carbonfibre]

When Tesla dipped today.

This happened. Nuts.

[Harry362]

Something I started doing recently is taking money from a bagholding stock and putting it somewhere else and making it all back pretty quick.. seems more profitable in a shorter period of time tbh. Like with FTOC, I saw CRSR was on a fairly big dip and could've parked my money there and likely made it back more quickly than waiting for FTOC to recover.

I sold the rest of my FTOC, loss of 3k or so total. I already have SOFI and Paysafe, possibly Affirm if I get assigned so enough Fintech

This was in an IRA and I'll now have $34,000 free to trade in a couple days when it settles, will be placing it all in a single SPAC


also closed my APXT and NIO cash secured puts for pretty much break even.

[roughinhouse]

my pltr calls are killing me. Bought 10 @30sp when it was $29.30 a share. Should've sold this morning damn it.

[chino3]

At what point do you guys close covered calls early? I'm looking at a weekly PLTR cc that's up 60%..

I highly doubt it would get assigned (it's a $40 CC for this Friday) but I'm thinking of closing it then reopening once the price jumps back up. Thoughts?

Depends on how many DTE, volatility, and my goals are.

Typically if I make it to the week of, I won't close below 90%.

Also wouldn't re-enter a same expiry position on a weekly, ever.

[Harry362]

Hmm ok makes sense. Thanks.

I was wondering - if I decide to STO CCs on PLTR but don't have the shares to do so (let's say for next week), but after this week my existing CC on PLTR expires worthless, will I essentially have a CC for next week that "picks up" the shares that didn't get assigned?

Selling calls on stock you dont own is a "naked call" or "uncovered call". Don't do this, you could have done it on something like Zoom and then it shoots up $200 or some ****.


or do you mean you have shares and want to sell covered calls this week and next week? If thats the case you will need to have the options level to sell naked calls bc you wont have enough shares to cover both weeks

[chino3]

Hmm ok makes sense. Thanks.

I was wondering - if I decide to STO CCs on PLTR but don't have the shares to do so (let's say for next week), but after this week my existing CC on PLTR expires worthless, will I essentially have a CC for next week that "picks up" the shares that didn't get assigned?

Just to be clear, in a very rough example:

You have 100 shares, STO cc for 2/26, and want to STO cc for 3/5 assuming that the 2/26 will expire worthless and you are good to go for the 3/5?

[NoScrubz]

Yea, that's what I figured.. but my question was what happens once you have the shares.

Like if I have 1000 PLTR shares today with a CC that expires this Friday.

Let's say today I open up another STO call that expires NEXT Friday.

Then the CC for this Friday expires worthless.

Then for next week, the naked call I have wouldn't be naked anymore, right? Since I have the 1000 shares still?



Exactly, yea. Seems I posted same time as you which is why I have that writeup above.

Doubt you can even do that you have to have the highest option level (with my broker anyway). Try to enter the order without submitting youll probably get a message that you’re not authorized until you upgrade. Why not just roll the CCs?

[Harry362]

How dumb would it be to buy $10,000 in 3/19 20p on CCIV for $65 each. If the deal falls through I think it would drop to $10 and those puts would be worth like $150k

[NoScrubz]

Hmm interesting. Just figured if I did that STO now for next week it would yield me a higher premium as opposed to waiting for my existing CC to expire and then opening.

You can just roll them over to the next week

[NoScrubz]

How dumb would it be to buy $10,000 in 3/19 20p on CCIV for $65 each. If the deal falls through I think it would drop to $10 and those puts would be worth like $150k

I did this but 10p. Just for insurance

[NoScrubz]

Bought some mara 3/19 $45c hoping for a buttcoin bounce

[Harry362]

I did this but 10p. Just for insurance

SPAC dont usually go below $10. This would still increase along with price movement?

[NoScrubz]

SPAC dont usually go below $10. This would still increase along with price movement?

Yeah figured if no deal then it’ll drop pretty quickly to the 10-15 range which pays something like 20-40 to 1. But I probably should’ve chosen a higher strike

[Harry362]

How does Delta work on put options? it says its -2.84 on the 20p. If I bought options for 0.65 how much do they increase in value with each drop in stock price?