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

[usersignup2]

STO
Oxy Jan20 63csp x10
TSLA Jan20 135cc x 24
AAPL Jan20 139cc
AAPL Jan20 138cc x2
CL Feb17 80cc

Looking to net 4600 for contracts expiring this week

Recap closed tsla cc early, opened goog cc and rolled out to next week.

Net of just under 5k for the week.

[TugOfPeace]

Opened a CC on bros last Friday at close. Already ITM today.

Reminds me why I stopped doing CCs a long time ago. JFL

[usersignup2]

Opened a CC on bros last Friday at close. Already ITM today.

Reminds me why I stopped doing CCs a long time ago. JFL

It closed at 34 on Friday. It's now 34.61. Not sure what you were expecting. At the very least you should have targets or a basic understanding of option greeks before getting into options.

[usersignup2]

It's important to continually set targets so you can plan your trades.

this is what I wrote on Discord:
usersignup — 01/12/2023 1:39 PM
have to stay nimble. So ready to exit tsla when I see it turn. Target 136 before earnings.

Hit 136 on 01/17/23 one week before earnings

usersignup — 01/18/2023 5:48 AM
Target hit premarket. Another big day here and potential 156 by earnings next week.
137.57 is gap fill so needs to get over that to make a run.

Hit 156 on 01/26/23 day after earnings.

STO for this week
TSLA Jan27 160cc x 10
TSLA Jan27 125cc x 24
OXY Jan27 64csp x10
AAPL Jan27 144cc x3

still holding GOOG Feb03 94cc x4

Looking to net just over 26K this week

[usersignup2]

It's important to continually set targets so you can plan your trades.

this is what I wrote on Discord:
usersignup — 01/12/2023 1:39 PM
have to stay nimble. So ready to exit tsla when I see it turn. Target 136 before earnings.

Hit 136 on 01/17/23 one week before earnings

usersignup — 01/18/2023 5:48 AM
Target hit premarket. Another big day here and potential 156 by earnings next week.
137.57 is gap fill so needs to get over that to make a run.

Hit 156 on 01/26/23 day after earnings.

STO for this week
TSLA Jan27 160cc x 10
TSLA Jan27 125cc x 24
OXY Jan27 64csp x10
AAPL Jan27 144cc x3

still holding GOOG Feb03 94cc x4

Looking to net just over 26K this week

Rolled my TSLA Jan27 160cc to March03 160cc
Will let my TSLA 125cc get called away
Rolled AAPL Jan27 144cc to Feb03 144cc

Left over 100k on the table if you can believe it, but made some good change regardless. TSLA run was insane.

[usersignup2]

Tsla scalp this morning for 1800.

Will probably hold off on anything until FOMC later this week. Possible will enter SQQQ but looking for QQQ conformation sell off

[usersignup2]

Posted on discord on Jan 25.

If 150 holds tomorrow we could get a moonshot.
156 is right at bottom of trendline that it dropped through. Now it has to recover that trendline. 156 and then consolidate then could see 198 as ultimate target.

unfortunately was already committed to deep itm CC...

[TugOfPeace]

How close to strike do you generally write your contracts? I realized that I missed quite an opportunity to whittle down my cost basis on UPST the past six months.

Going to start writing a large amount of CSP contracts at probably 60% of strike price, on a biweekly basis. If I do this for a year this will more than halve my cost basis.

Edit: I may be mistaken, not quite sure if volatility has spiked to such an extent that these premiums are way higher than they normally are. I'm looking at 4/17 $13.50 CSP for example, showing $.21 per contract.

[usersignup2]

How close to strike do you generally write your contracts? I realized that I missed quite an opportunity to whittle down my cost basis on UPST the past six months.

Going to start writing a large amount of CSP contracts at probably 60% of strike price, on a biweekly basis. If I do this for a year this will more than halve my cost basis.

Edit: I may be mistaken, not quite sure if volatility has spiked to such an extent that these premiums are way higher than they normally are. I'm looking at 4/17 $13.50 CSP for example, showing $.21 per contract.

depends on market conditions. Declining markets I will write calls closer to the money, as I expect price to drop. No sense in writing 20delta calls if the price is going to dip. This assumes I want to hold the shares. In bullish environment I will write calls at 15-20delta depending on how volatile I expect the period to be.

For CSP I generally don't want to own the shares, just collect premium. Those I will write at 5delta. In declining markets with volatile stocks I will avoid writing calls completely unless I want to take a position.

[usersignup2]

Opened a large position in AMZN hoping to capitalize on earnings. Unfortunately market pulled back. Still comfortable owning the shares and will hold until I get a sell signal. Sold 125 weekly calls for net just under 2600.

total net for week including swing trades 5500.

[usersignup2]

STO
TSLA feb10 197.50cc x10
AMZN feb10 106cc x20

[Bingo559]

was buying some TQQQ friday calls for around 0.30. then they dipped to 0.07. shoulda added more but didn't. they swung back up into this high 0.20s

now i can see how addicting options can be

[SipNPiz]

KMX $70P April , carmax earnings gonna be trash and outlook even worse

[Bingo559]

bought a GOOG $100 C 3/17 for $2.45

hoping that glitch in their new AI was just overblown and can make a quick recovery

[usersignup2]

bought a GOOG $100 C 3/17 for $2.45

hoping that glitch in their new AI was just overblown and can make a quick recovery

see what I posted on discord about GOOG. I have March03 94 covered calls.

[Bingo559]

thanks

[Smok3d]

see what I posted on discord about GOOG. I have March03 94 covered calls.

whats the link for misc discord brah?

[usersignup2]

STO
TSLA feb10 197.50cc x5
AMZN feb10 106cc x20

BTC TSLA calls and STO feb17 190cc x5

AMZN expired worthless


net just under 3700 for the week

[TugOfPeace]

Ok am I missing something here or is this free money?

Look at ZIM option chain for March 17th 2023 expiration.

They have $2.50 CSP with bid of 0.00 and ask of 0.95 which means I can sell to open @ 0.47.

Theoretically I could do CSPs at $2.50 strike and that's pretty much guaranteed to never go ITM.

Currently ZIM is trading at $21 and it's all time low was $17 or something.

Right?

[usersignup2]

Ok am I missing something here or is this free money?

Look at ZIM option chain for March 17th 2023 expiration.

They have $2.50 CSP with bid of 0.00 and ask of 0.95 which means I can sell to open @ 0.47.

Theoretically I could do CSPs at $2.50 strike and that's pretty much guaranteed to never go ITM.

Currently ZIM is trading at $21 and it's all time low was $17 or something.

Right?

Last price on 7.50 puts is $0.05 so no, you won't get filled at $2.50. Not to mention 0 volume.

Use optionistics.com for better stats

[TugOfPeace]

Last price on 7.50 puts is $0.05 so no, you won't get filled at $2.50. Not to mention 0 volume.

Use optionistics.com for better stats

Hm that site shows the same thing I was seeing.

$2.50 strike, $0.00 bid, $0.95 ask. Although the volume is zero like you said

I'm assuming the $0.00 price is why you say it won't get filled - I placed a limit order just to see where the price would land and it was @ $.475. Figured if I did that during market hours it would potentially fill. Guess I'm wrong! Wishful thinking

[usersignup2]

BTC TSLA calls and STO feb17 190cc x5

AMZN expired worthless


net just under 3700 for the week

TSLA feb 190cc will let get called away

also STO AMZN feb17 106cc x 20, expired worthless

net 3600 for the week

[usersignup2]

STO
AMZN feb24 99cc x20
SQQQ feb24 41.50cc x10

TSLA scalp this afternoon for 2k

[Bingo559]

you sold covered calls on amazon with 1 day expiration?

[usersignup2]

you sold covered calls on amazon with 1 day expiration?

I sold those yesterday when it popped. Most of my covered calls are weekly expiration to maximize yield.

[usersignup2]

STO
AMZN feb24 99cc x20
SQQQ feb24 41.50cc x10

TSLA scalp this afternoon for 2k

Contracts expired worthless for 2k net.
Tsla calp this morning for another 600.

Total for week 4600 net.

[TugOfPeace]

Do you have any solid books that you'd recommend for options trading? I'm trying to net about $1k/month from CCs and so far have been doing alright, but figure I need a better grasp on the technicals to get better at it.

[usersignup2]

No. Everything I know has been through hands on experience and gleaning off various sites.

[TugOfPeace]

No. Everything I know has been through hands on experience and gleaning off various sites.

Doesn't surprise me - I've been able to find everything I need from various sites as well, but I do enjoy going through a book offline.

[usersignup2]

1500 scalp on tsla this morning. Took a swing position into close.

STO
AMZN Mar03 95cc x20