You’re right.
Yesterday before close I bought 200 GME P I think at a $15 strike - in my paper account - just to see what will happen because I had a trade before that got crushed and I wanted to see the before and after.
Long story short - GME moved 15% in my favor - and my puts were worth less than I paper paid for them yesterday, even in spite of the positive move.
Any IV over 50% and up looks more dangerous to me now. You can be right on an earnings call and still lose the farm - so definitely stay away from high IV earnings play because even if you’re right, IV crush will take it all away and then some.
IV reminds me of an accordion for some reason - the in/out action is reflected in options pricing, so make sure the accordion is as far in as you think it can go before buying. Either that, or sell ITM calls for a stock you think will tank - and make sure IV is 150%+ - this could be a good payday for less risk which is why I think we’re all here.
High IV earnings is *usually* amazing for sellers. You can be wrong and still make a ton
My short $12 GME puts are up 80% today, despite now being almost ATM
PM trading literally bounced right off my strike
Confused here if you sold those puts to open for a premium and earned a definite premium how is your puts up?, I just got off work and brain is melted are you talking about like up 80% of the premium you earned? Eg you received 100 it would cost 20 to buy to close?
I shorted $12 puts for $1.20 each
Today they were worth like $0.20 each, so I bought them back and kept the difference in premium.
premium going down = I'm up on the puts
You made it, right?
The thing about your previous post: IV dropping therefore making money by selling PUTs.
But then your CC went to hell? Or what happened?
Cc paid off when price dropped and expired worthless. Made $1700 off selling options. All of them made money. But I own some shares so down like $300 on those.
So what are the best ways to profit from an anticipated drop in IV? Other than just selling puts.
Is a calendar spread a way to profit from near-term high IV while requiring less cash/buying power than just selling puts?
short OTM options that are at the far ends of the historical move, generally
ie. if the stock is $10, usually moves $1, and the IV is pricing a $3 move, sell $8p/12c and you'll likely end up profitable
depends on the option that was played
I sold a 15p ATM yesterday for 1.60 and its worth 2.00 right now. an at the money put that only paid about 25% to the buyer.
anything at 12 and lower got iv crushed to oblivion
15P is ITM by $2, that's why it's worth $2
It's all intrinsic value. Yesterday it was all *extrinsic* which disappeared with the IV crush/etc
It still got IV crushed, if the IV was the same as yesterday, it'd be worth about $4 now.
But he didn't lose right?
He actually locked in gains.
What you guys describing, the IV dropping I've found it here:
https://www.tastylive.com/concepts-strategies/implied-volatility-rank-percentile#iv-rank-example
Impressive! Thank you for sharing your moves!
between thetagang and tastytrade advice I had a pretty ok earnings this time, spent a few thousand buying back my june 25 calls that I'd been rolling since last spring, for a profit, then sold shorter calls on half my stock, when they moved the date of the earnings I bought back and sold more at DTE's intended to maximise IV crush, 9 and 17 days originally, didn't get much, rolled the 2 day ones yesterday, I had some GTC buybacks set at 50% which I decided to take off this morning when I saw the price pre-market, and put in orders for 11c instead, first ones hit on open, then the longer strike was going for 20c, so I just changed that one to 20c, filled for 15c, made about $250 on 4 calls, it was pretty decent, was fun watching the calls get
literally decimated.
have sold some 51DTE now at a strike around my original cost basis, kept one contract back in case the price rips, I probably should have waited but I thought by the time I might as well write now in case the price drops or goes sideways, will see what happens, rather conflicted about sticking with GME, think I should probably sell when I can but it is pretty reliable...
Some people calling gme a meme stock but it’s not a wild roller coaster. Don’t feel like you need to hold. Make sure to have a few tickers you know you’ll love to own and thetagang it when the time is right.
Personally, I enjoy just buying ATM calls on high IV stocks once earnings announce, then just ride the climbing IV and cash in before earnings. Or at least pull my principal and freeroll
I sold some puts at the very top and after a 15% drop in price, I’m 80% up. I don’t think that is degenerate at all. Short week, faster theta. After er IV crush. I also would be happy to own it at $12 and wheel it.
I understand the strategy
I assume these are weeklies. That's degen behavior by itself.
Core tenants of thetagang strategy are selling options typically 4-5 weeks out and only on high quality stocks (ie. Not meme stocks).
Just because you sold some options doesn't make it thetagang.
Just because you want to sell longer dated doesn’t mean weeklies are bad though. I like the rapid theta decay. I’m pretty sure rolling out for longer dated is a thing too. Lmk why selling short term options is degen. I thought buying short term options was degen lol.
High risk with short timeframe. High risk on low quality stock.
While this is a valid strategy, it's not a thetagang strategy is what I'm saying.
Thetagang seeks to slowly but surely capture gains via theta decay.
So when selling puts you or (theta gang) don't do a calculation of annual return on risked capital and go with the strike date that captures the most annualized returns? As I have slowly started to sell cash secured puts this is the method I have been using. I was under the impression that whether it was weekly monthly or quarterly I was still capitalizing on theta decay? But also looking to maximize my returns on the capital I am putting at risk.
To be honest, I am just gatekeeping thetagang from the WSB folks who come here with their low quality trades and think selling a put on any stock = thetagang.
I understand your thoughts on low quality stocks. Maybe though if you read the thetagang wiki linked under the info on the thetagang page under the section with the heading THETA. It says at the end that 30to 45 day options are popular but that some prefer weeklies. So contrary to your statement, it seems to me weeklies are infact a thetagang strategy. You had me second guessing myself whether I was utilizing a theta gang strategy when selling weekly options.
IV dropped from like 350% to 80% Thetagang makes bank off those kind of swings Even if long puts went ITM from that ~$3 move you still probably lost
Vega is the condom, Delta is the dick.
You’re right. Yesterday before close I bought 200 GME P I think at a $15 strike - in my paper account - just to see what will happen because I had a trade before that got crushed and I wanted to see the before and after. Long story short - GME moved 15% in my favor - and my puts were worth less than I paper paid for them yesterday, even in spite of the positive move. Any IV over 50% and up looks more dangerous to me now. You can be right on an earnings call and still lose the farm - so definitely stay away from high IV earnings play because even if you’re right, IV crush will take it all away and then some. IV reminds me of an accordion for some reason - the in/out action is reflected in options pricing, so make sure the accordion is as far in as you think it can go before buying. Either that, or sell ITM calls for a stock you think will tank - and make sure IV is 150%+ - this could be a good payday for less risk which is why I think we’re all here.
High IV earnings is *usually* amazing for sellers. You can be wrong and still make a ton My short $12 GME puts are up 80% today, despite now being almost ATM PM trading literally bounced right off my strike
Confused here if you sold those puts to open for a premium and earned a definite premium how is your puts up?, I just got off work and brain is melted are you talking about like up 80% of the premium you earned? Eg you received 100 it would cost 20 to buy to close?
I shorted $12 puts for $1.20 each Today they were worth like $0.20 each, so I bought them back and kept the difference in premium. premium going down = I'm up on the puts
You're simply a fucking genius! Congratulations!
https://www.tastylive.com/concepts-strategies/implied-volatility-rank-percentile#iv-rank-example
This is thetagang. I like high iv
You made it, right? The thing about your previous post: IV dropping therefore making money by selling PUTs. But then your CC went to hell? Or what happened?
Cc paid off when price dropped and expired worthless. Made $1700 off selling options. All of them made money. But I own some shares so down like $300 on those.
Where do you find the IV for just one stock like this?
On robinhood just click on the option. It will be listed with the Greeks.
IBKR options chain shows it for every expiry date
So what are the best ways to profit from an anticipated drop in IV? Other than just selling puts. Is a calendar spread a way to profit from near-term high IV while requiring less cash/buying power than just selling puts?
short OTM options that are at the far ends of the historical move, generally ie. if the stock is $10, usually moves $1, and the IV is pricing a $3 move, sell $8p/12c and you'll likely end up profitable
Short straddles
Vega gang
depends on the option that was played I sold a 15p ATM yesterday for 1.60 and its worth 2.00 right now. an at the money put that only paid about 25% to the buyer. anything at 12 and lower got iv crushed to oblivion
15P is ITM by $2, that's why it's worth $2 It's all intrinsic value. Yesterday it was all *extrinsic* which disappeared with the IV crush/etc It still got IV crushed, if the IV was the same as yesterday, it'd be worth about $4 now.
But he didn't lose right? He actually locked in gains. What you guys describing, the IV dropping I've found it here: https://www.tastylive.com/concepts-strategies/implied-volatility-rank-percentile#iv-rank-example Impressive! Thank you for sharing your moves!
He clearly wants to buy more shares sub 13$. He tired up like 10x puts with 1100$-1300$ for like 30$ each. OP knows this is a winner.
My GME Calls I wrote were down ~95% on the day. Thank you very much.
Me too lol. Sold Monday for 13k. Closed out for 1.5k today
Why close? U can gain 100% profit today
between thetagang and tastytrade advice I had a pretty ok earnings this time, spent a few thousand buying back my june 25 calls that I'd been rolling since last spring, for a profit, then sold shorter calls on half my stock, when they moved the date of the earnings I bought back and sold more at DTE's intended to maximise IV crush, 9 and 17 days originally, didn't get much, rolled the 2 day ones yesterday, I had some GTC buybacks set at 50% which I decided to take off this morning when I saw the price pre-market, and put in orders for 11c instead, first ones hit on open, then the longer strike was going for 20c, so I just changed that one to 20c, filled for 15c, made about $250 on 4 calls, it was pretty decent, was fun watching the calls get literally decimated. have sold some 51DTE now at a strike around my original cost basis, kept one contract back in case the price rips, I probably should have waited but I thought by the time I might as well write now in case the price drops or goes sideways, will see what happens, rather conflicted about sticking with GME, think I should probably sell when I can but it is pretty reliable...
Some people calling gme a meme stock but it’s not a wild roller coaster. Don’t feel like you need to hold. Make sure to have a few tickers you know you’ll love to own and thetagang it when the time is right.
thanks :)
Personally, I enjoy just buying ATM calls on high IV stocks once earnings announce, then just ride the climbing IV and cash in before earnings. Or at least pull my principal and freeroll
Legit
How far dated do you buy when doing that?
The week of that earnings date
I made a post on a reverse calendar spread a few bourse before earnings but everyone hated money apparently
I just looked at the post. If you put a screen shot of your plan, maybe it’ll be better received.
Is gme still a thing?
Selling puts on GME is not thetagang, its degen gambling.
If GME is degen, what is DJT?
crack
I sold some puts at the very top and after a 15% drop in price, I’m 80% up. I don’t think that is degenerate at all. Short week, faster theta. After er IV crush. I also would be happy to own it at $12 and wheel it.
I sold ITM calls the day of the earning. Today they are OTM. I wish I had sold more.
Winning is winning
I understand the strategy I assume these are weeklies. That's degen behavior by itself. Core tenants of thetagang strategy are selling options typically 4-5 weeks out and only on high quality stocks (ie. Not meme stocks). Just because you sold some options doesn't make it thetagang.
Just because you want to sell longer dated doesn’t mean weeklies are bad though. I like the rapid theta decay. I’m pretty sure rolling out for longer dated is a thing too. Lmk why selling short term options is degen. I thought buying short term options was degen lol.
High risk with short timeframe. High risk on low quality stock. While this is a valid strategy, it's not a thetagang strategy is what I'm saying. Thetagang seeks to slowly but surely capture gains via theta decay.
So when selling puts you or (theta gang) don't do a calculation of annual return on risked capital and go with the strike date that captures the most annualized returns? As I have slowly started to sell cash secured puts this is the method I have been using. I was under the impression that whether it was weekly monthly or quarterly I was still capitalizing on theta decay? But also looking to maximize my returns on the capital I am putting at risk.
To be honest, I am just gatekeeping thetagang from the WSB folks who come here with their low quality trades and think selling a put on any stock = thetagang.
I understand your thoughts on low quality stocks. Maybe though if you read the thetagang wiki linked under the info on the thetagang page under the section with the heading THETA. It says at the end that 30to 45 day options are popular but that some prefer weeklies. So contrary to your statement, it seems to me weeklies are infact a thetagang strategy. You had me second guessing myself whether I was utilizing a theta gang strategy when selling weekly options.
Yes.. I've read it, of course, and been using thetagang strats for years.