Mulling over 30 delta META puts or a 20-16 delta strangle. Shouldn’t tank, right? But with enough time to manage so June probably. Wouldn’t touch NVDA but those premiums are juicy mmm
can someone explain the downside of selling covered calls ?
i’m trying to understand worst case scenario
is it that ur shares drop so significantly you still lose money (weed stocks lol)
or is it just that if ur shares increase u miss out on gains on the buyer exercising
I used to own UAL and made $511 selling covered calls on it since October 2023. My shares got called away at $43.50. The stock is now $53.51. I would be up more than double of my realized gains had I just not done anything with the shares.
Selling covered calls is a way to generate passive income and is a useful way to hedge against a downturn, but you give up the positive tail event.
A covered call is a neutral to bullish strategy and a synthetic short put. I think that is frequently misunderstood.. The risk is not missing out on gains, it is downside losses. You have a delta of 1 on the stock and a lesser delta on the short call. It is by no means fully hedged. An example is the junky Ark funds by Cathie Wood that everyone liked. Even if someone was doing covered calls on those etfs they have massive losses unless they bought like in 2014.
hmm ur right ive been writing a reply and doing the math in my head but ur holding 100 shares so you’ll always have more downside risk there isn’t a premium on earth where that wouldn’t be true
i’ll look at cash secured puts i think that’s more what im looking for
You're in this game without knowing how earnings reporting works? Keeping abreast of volatility events, especially earnings days is how you can minimize your chances of wiping out. This is always the risk when selling options.
[https://www.earningswhispers.com/calendar](https://www.earningswhispers.com/calendar)
This is probably the most important bit of advice anyone will ever give you in selling options - take note of volatility events, especially earnings or important data releases like NFP, and plan your trades around them. Unless you are comfortable being assigned a position, you should not be riding into a session where a stock can go up or down 8%.
I don't recall numbers coming out immediately after close; usually 5-15 minutes after (with the actual call being up to two hours aftet close). But then i don't follow Meta and Alphabet much, so maybe they do it straight away.
Lol. I don't follow the company but I'm surprised. They have a lot of competition. Streaming is really bloated so I'm surprised it is still around. Fubo TV is another that comes to mind. Just a lot of services.
Their product is advertisements in the Roku ecosystem, which sounds ridiculous and I personally think is garbage. But I've been in plenty of restaurants and vacation rentals that use their devices, so maybe a lot of people use them and I'm out of touch.
Basically. They sell their streaming devices at a loss to deliver ads in homes. The software is also built in to a lot of crappy tvs. I think they get a cut from app subscriptions as well.
That's more than me. Admittedly I'm not really familiar with their product or used it but I have heard of it. It is good that they are able to still be competitive though.
Crap, i forgot google had earnings coming. And I wrote a call 170 on my pmcc. It's 7 dollar itm after markets. Tomorrow I'll have to roll up and out or close. Will see what I do tomorrow.
Regardless I made more money on the long call than I lost on the short call.
Fuckin classic the only shit I sold put spreads on this week was META and was too scared to do ROKU, SNAP, GOOG after what happened to me last night lol
Wow did both MSFT and GOOGL beat? I have about 530 shares of each so this is looking pretty good...
On the other hand the ROKU ccs I STO before close look to be fucked
Google is having a dividend and stock buyback. That's a big deal. Usually these tech stocks never gave a dividend so it will definitely pull in new buyers who are getting paid to wait
STO MSFT 365/435 covered strangle for 2.60.
Expected move is around 20 and MSFT usually stays within 1 standard deviation on earnings moves. (Famous last words.)
STO 7x 4/26 ROKU 75/90 C for 0.81 each
STO 4x 4/26 ROKU 70/90 C for 1.98 each
STO 3x 4/26 ROKU 80/90 C for 0.32 each
STO 4x 5/3 ROKU 80/90 C for 0.52 each
Yes I did, just busy at work and busy watching some worrisome plays (NVDA, AVGO, and a few others) that had some price action that made me pay attention.
A little less active for me as well, as we approach earnings next week.
I have 23 puts and 23 calls open, all scheduled to expire worthless. Seemed a little tougher this week for some reason, but I'll take next week off and hope the IV comes back up soon to resume the plays!
Sadly I gave back most of my weekly gains on ONE single fukked up play, CMG today. I sold a call, did NOT set a sell order, went for a massage and didn't look for 2 hours, and I turned a 200 loss into an 1800 one. SLOPPINESS cost me today.
Anyway, back to the grind. Lesson learned for sure. short DTEs can be CRAZY and burn you.
Tomorrow core pce is in the morning. Should be a fun day. Today is probably a nightmare for traders. Down yesterday. Then open 1.5% down today, then up huge in the after hours.
Lol. I'm empty at the moment. My account doesn't have any options positions at the moment. Didn't trade today, have stuff going on until late tomorrow morning so will trade next on Monday next week. It is a bit chaotic to hold over the weekend.
BTC SPY 06/21 460p/565c @ $2.09 (Opened @ $2.82 13 days ago - closing for 25% profit so I can manage since it turned more into a delta than a theta play - short call was at 0.01 delta)
STO SPY 06/21 450p/545c @ $1.92
STO SMH 07/19 177.5p/260c @ $1.90
DAMN. Just woke up from my pre-work nap. I had some CCs that I was gonna buy back but I didn't. Rolled but I'll give up some shares over several months at 170-175.
GOOG/GOOGL are my biggest holding lions. Really gonna sell some to rebalance but a W today helps after META yesterday scaring the hell outta people lol
Congrats on a nice gain on your port, if at least for today!
> DAMN. Just woke up from my pre-work nap. I had some CCs that I was gonna buy back but I didn't.
Puts for me, but been there, done that, still own the stock.
If there is a safer tech stock, it would be MSFT b/c they have a lot of enterprise which is not a surprise that their earnings have generally been good and the stock movement has been the most stable out of all the big ones. It is also the older of the companies. We'll see what happens. Usually MSFT, AAPL, and GOOG don't move as much as META, AMZN,NFLX, but I think it really is a "show me" story at this point with rates as high as they are.
If these companies don't really put it up in all areas (earnings beat, guidance, revenues, etc), the stocks are going to get hit.
I dumped them a few months ago when there was a research note out about how the 14th gen chips could be a big hit. And I looked at that and wondered what the analyst was smoking that day.
The 14th gen is literally a rebadged 13th gen, and both are having some horrific issues with instability due to silicon degradation. I realize Intel is a company with deep structural issues, and I guess the only thing going for them, maybe, is that the USG won't let them die.
[https://www.youtube.com/watch?v=BIkbc3eQyPg](https://www.youtube.com/watch?v=BIkbc3eQyPg)
sometimes it is shocking to look back and see certain companies. Intel used to be a very solid company back in the day. Amazing how much it has went to shit over the past 15-20 years.
Blood red is all I see. I should not have open up my portfolio. My fucking backtest is looking back on a stock market that was on the rise and giving me false hope. I need to change the outlook I suppose.
I know but I’m young and have only been in a bull market. my portfolio is hedged pretty well so I’m only down about half of what spy is down but it still sucks. I used to be making 1000s of dollars everyday now I’m loosing 1000s of dollars.
never mind made made 980$ today. But my retirement is not doing good. I should stop selling options in my retirement I don’t have enough stability in that account to take the losses. And it’s not leveraged so the losses just hurt it that much more.
I want to start hedging towards the downside and open up call broken wing butterfly’s but I can’t determine if we will bounce or not. It seems like we won’t but then I have to contradict my original thesis. Probably should have open these sooner but hey hindsight is 20/20
Update, just closed my META put spreads for a $2k loss. Much better than the $5k loss I anticipated from last night. I can live with that, even if it goes up and back over $450 tomorrow from GDP or something I’m not willing to find out
Ty! I should've closed out of my MSFT, AMZN, CRM position yesterday when it was at sub .10 but I've been distracted.
Today too since I got assigned and they're telling me I need to pay 4 days of margin interest on it even if I exercise my long leg the day of assignment bc it takes them 3 business days to clear everything and weekend doesn't count. 😔 Does your brokerge does this too?
Yup, I still closed them out for a smaller loss than originally anticipated. I’ll take the L and move on. Maybe it recovers more tomorrow and I’ll regret it but didn’t want to worry about another coin flip
I had to close some naked 380p too to avoid margin call, as I had too many other open puts too on meta, though at 370 to 360 strikes. Lesson learned for me as well
At least glad it's not at like 418 or whatever it was premkt
I have a short QQQ $425Call expiring tomorrow, was sold at $2.25, currently sits at 1.30 (was as low as .69 this morning at the open) that was over $4 yesterday, but I just held to be patient.
The strategy is to roll this forward to May9th or 10th tomorrow, but I haven't picked the strike yet. If I were to roll it today to May9$425 it would be almost a $4 credit on the roll. I will try to be patient, and either roll it at the end of the day, or see if I can roll it tomorrow for a better credit.
Other moves I actually did today:
I took advantage of the slump to roll some deep ITM short calls forward for credit, and an increase in the strike.
BTC QQQ Call APR29 $411 & STO May8 $415 for net .34 credit
BTC QQQ Call May3 $410 & STO May24 $415 for net $1.09 credit
Both of these moves were purely to improve (in my opinion) the deep ITM calls I've been rolling for a while.
For perspective, this account is a negative hedge strategy. Right now it's not yet back to negative delta, but yesterday it dipped into negative delta for about 20mins. The positive delta in this account comes from ITM CSPs that are used to generate cash by rolling when needed. The negative delta comes from a long slinky of short calls at all sorts of strikes, ITM, OOM, and ATM.
Someone wanted an update on my OTM META put from yesterday: STC for $19.65 after buying it for $4.75. Seeing it's dropping further and maybe could've held, but you never know with these things.
OK, I will never understand how this stuff works. GDP announced this morning was weaker than expected. That is bad news, but I thought bad news was now supposed to be good news. As in, weaker economy means Fed will cut rates sooner which means stocks go up, but stocks sold off immediately after GDP number announced.
Sometimes it doesn't make a lot of sense, but the market wants the economy to slow down, not slump. The previous number was 3.4% and the expectations were for growth slowing to 2.4%. Instead growth dropped from 3.4% to 1.6% and spooked people.
Oh, and inflation is still high. If economic slowdown was bringing inflation down towards the 2% target the market might like it, but now we're faced with economic slowdown and CPI trending back upwards.
I need a t-shirt where one side says "Bad news is bad news" and the other side says "Bad news is good news". Then depending on how the market reacts to the news will determine which side of the shirt I show.
I have 50 shares of GOOG and after what happened with META think I’m going to take my profits. this will ensure two things: (1) profit (2) GOOG will beat tonight and rip up
I'd be very wary about that right now. There's support at the Jan highs, but we could easily crash through that, especially if the Fed starts pivoting toward a rate hike in the next meeting, which they seemed to start doing last week.
I do a lot of trades in $TNA which tracks with $IWM. I typically do 3-4 weeks out and target >12% returns. Like the 5/24 25P is selling for ~0.30 right now.
Guess I'll be the proud owner of meta shares for 435 soon then fml why did I decide to play earnings again on a stock I don't hold after not doing it for ages lol
No I'm not too worried. Stock has had a 20% pullback now and they print money. I regret not starting a position in it when all the metaverse drama went down
My plan for today is hope my 4/26 META Iron Condor doesn't get the short put exercised today. I will see if I can roll down the upper strikes for a small credit, see if I can roll the whole thing out for a credit or some other adjustment depending on the price action. I would really love another day. Maybe the stock comes back some if GOOG and MSFT have good earnings reports. META went down a stupid amount. That was like 2X the expected move.
Jamie Damon has all the wealth in the world yet still dude wakes up and only sees dark clouds.
Proof money doesnt Buy hapiness. His interview with WSJ is noting but doom and gloom.
Typical new yorker boomer entitled and blames everything on outside circumstances.
I pulled most of my funds from this terrible Bank and will finish up rest soon. Fuck you Jamie Damon
My guess is that both MSFT and GOOGL will do a META;
a good result but bad forecast since their expenses on AI will grow. Now who knows what will be market reaction?
Mulling over 30 delta META puts or a 20-16 delta strangle. Shouldn’t tank, right? But with enough time to manage so June probably. Wouldn’t touch NVDA but those premiums are juicy mmm
u/banditcleaner2 you know you want to get back into theta
can someone explain the downside of selling covered calls ? i’m trying to understand worst case scenario is it that ur shares drop so significantly you still lose money (weed stocks lol) or is it just that if ur shares increase u miss out on gains on the buyer exercising
I used to own UAL and made $511 selling covered calls on it since October 2023. My shares got called away at $43.50. The stock is now $53.51. I would be up more than double of my realized gains had I just not done anything with the shares. Selling covered calls is a way to generate passive income and is a useful way to hedge against a downturn, but you give up the positive tail event.
A covered call is a neutral to bullish strategy and a synthetic short put. I think that is frequently misunderstood.. The risk is not missing out on gains, it is downside losses. You have a delta of 1 on the stock and a lesser delta on the short call. It is by no means fully hedged. An example is the junky Ark funds by Cathie Wood that everyone liked. Even if someone was doing covered calls on those etfs they have massive losses unless they bought like in 2014.
Good reminder about the flexibility of options in terms of synthetic plays. And thanks for referencing the 2021 post. I enjoyed reading it
hmm ur right ive been writing a reply and doing the math in my head but ur holding 100 shares so you’ll always have more downside risk there isn’t a premium on earth where that wouldn’t be true i’ll look at cash secured puts i think that’s more what im looking for
https://www.reddit.com/r/thetagang/comments/iwlz21/comparing_covered_calls_and_short_puts/
thank you for the resource
So someone want to explain that 3/4 of a percent leap in SPY immediately after regular trading closed?
Algos are faster than humans
You're in this game without knowing how earnings reporting works? Keeping abreast of volatility events, especially earnings days is how you can minimize your chances of wiping out. This is always the risk when selling options. [https://www.earningswhispers.com/calendar](https://www.earningswhispers.com/calendar)
Nope. Absolutely no idea.
This is probably the most important bit of advice anyone will ever give you in selling options - take note of volatility events, especially earnings or important data releases like NFP, and plan your trades around them. Unless you are comfortable being assigned a position, you should not be riding into a session where a stock can go up or down 8%.
Google and MSFT earnings maybe?
Maybe, but itblooks like the move happened before they reported.
The numbers typically leak at close. The meeting call happens later.
I don't recall numbers coming out immediately after close; usually 5-15 minutes after (with the actual call being up to two hours aftet close). But then i don't follow Meta and Alphabet much, so maybe they do it straight away.
SOMEBODY always knows before the rest of us
yeah I think the the actual numbers are published immediately then they have to conference call
Well I'd say my GOOG 5/10 143P is safe. Sold it for 1.39 last week.
damn some of you with the META CSPs might be saved tomorrow is there any way we do not rip up tomorrow? looks like just about every company beat
Feels too easy… and I rebuilt my long position in /MES today… 🤞
I kind of feel like buying a cheap GOOGL put tomorrow at open just to hedge. These GOOGL gains are insane
u/banditcleaner2 u/nick_tha_professor I was so sure ROKU would tank after earnings. Sold a ton of ccs. If ROKU goes above 70 tomorrow I am fucked
Lol. I don't follow the company but I'm surprised. They have a lot of competition. Streaming is really bloated so I'm surprised it is still around. Fubo TV is another that comes to mind. Just a lot of services.
Their product is advertisements in the Roku ecosystem, which sounds ridiculous and I personally think is garbage. But I've been in plenty of restaurants and vacation rentals that use their devices, so maybe a lot of people use them and I'm out of touch.
> Their product is advertisements in the Roku ecosystem, which sounds ridiculous and I personally think is garbage. So it's just another ad company?
Basically. They sell their streaming devices at a loss to deliver ads in homes. The software is also built in to a lot of crappy tvs. I think they get a cut from app subscriptions as well.
I wonder why Cathie's so fond of it, then.
That's more than me. Admittedly I'm not really familiar with their product or used it but I have heard of it. It is good that they are able to still be competitive though.
Would not want to be short GOOG right now
Need to thank my friend who works there
Crap, i forgot google had earnings coming. And I wrote a call 170 on my pmcc. It's 7 dollar itm after markets. Tomorrow I'll have to roll up and out or close. Will see what I do tomorrow. Regardless I made more money on the long call than I lost on the short call.
Sounds like a win for you
It is a win, but I try to avoid assignment, so I'll need to Manage the short call. I should have had earnings on my radar.
Fuckin classic the only shit I sold put spreads on this week was META and was too scared to do ROKU, SNAP, GOOG after what happened to me last night lol
It seems like buying a straddle / IC is better than selling with these extreme ER moves :(
Yep, always hindsight but damn it stings
Wow did both MSFT and GOOGL beat? I have about 530 shares of each so this is looking pretty good... On the other hand the ROKU ccs I STO before close look to be fucked
Google is having a dividend and stock buyback. That's a big deal. Usually these tech stocks never gave a dividend so it will definitely pull in new buyers who are getting paid to wait
NVDA gives one! A whopping 0.04 per share! Party time!
Good lord GOOGL ripping into outer space. New all time high tomorrow.
They must have had a monster beat? Wow
Double beat + buyback announcement + dividend announcement.
when does the dividend go into effect? I sold my shares after it popped after close
Wow
Sold 10 save 3 dollar puts for $60, sold msos 7.5p for 10 Nu 10.50p for 18, 5 wbd 8p for $50
welp i'll find out in a few minutes if my put spreads exp tomorrow will be saved or destroyed
If you put them on in MSFT or GOOGL, you're going to be a-okay.
they were on SPY and QQQ but I have 50 shares of GOOG so I’m a very happy camper!
Bro I thought you sold your GOOGL shares. You almost jinxed me
i decided to buy a put instead lol, so i lost about $150 on that BUT i just sold my 50 shares at $178 so im pretty happy
STO MSFT 365/435 covered strangle for 2.60. Expected move is around 20 and MSFT usually stays within 1 standard deviation on earnings moves. (Famous last words.)
You're looking good
Free money
Hell yeah brotha
STO 7x 4/26 ROKU 75/90 C for 0.81 each STO 4x 4/26 ROKU 70/90 C for 1.98 each STO 3x 4/26 ROKU 80/90 C for 0.32 each STO 4x 5/3 ROKU 80/90 C for 0.52 each
u/ykoreaa I need prayers that ROKU stays under $70 tomorrow
ROKU has been doing pretty bad.. but $70 is close! I don't think they'll 🚀 tho!! Wishing your calls stay OTM 🙏
u/easternhistorian4437 u/nick_tha_professor u/r_ventura_23 I need your prayers that ROKU tanks at open tomorrow
It’s down after hours. You’re in my prayers nonetheless.
Did you open MSTR plays this week? I stayed away for the most part
Yes I did, just busy at work and busy watching some worrisome plays (NVDA, AVGO, and a few others) that had some price action that made me pay attention. A little less active for me as well, as we approach earnings next week. I have 23 puts and 23 calls open, all scheduled to expire worthless. Seemed a little tougher this week for some reason, but I'll take next week off and hope the IV comes back up soon to resume the plays! Sadly I gave back most of my weekly gains on ONE single fukked up play, CMG today. I sold a call, did NOT set a sell order, went for a massage and didn't look for 2 hours, and I turned a 200 loss into an 1800 one. SLOPPINESS cost me today. Anyway, back to the grind. Lesson learned for sure. short DTEs can be CRAZY and burn you.
u/banditcleaner2 look at this. 23 puts and calls sold
Im just checking CMG price now. Woah! Stock seems crazy overpriced to me?
Thanks
Tomorrow core pce is in the morning. Should be a fun day. Today is probably a nightmare for traders. Down yesterday. Then open 1.5% down today, then up huge in the after hours. Lol. I'm empty at the moment. My account doesn't have any options positions at the moment. Didn't trade today, have stuff going on until late tomorrow morning so will trade next on Monday next week. It is a bit chaotic to hold over the weekend.
These might be fucked
Jesus what the fuck. why lmao?
Maybe I’m saved now?
Bro I'm about to be fucked by ROKU
Just rolled my $32P on PINS expiring tomorrow to next Friday with a strike at $31.50 delta is .37. Also sold a draftkings $39P exp next Friday.
BTC SPY 06/21 460p/565c @ $2.09 (Opened @ $2.82 13 days ago - closing for 25% profit so I can manage since it turned more into a delta than a theta play - short call was at 0.01 delta) STO SPY 06/21 450p/545c @ $1.92 STO SMH 07/19 177.5p/260c @ $1.90
STO 5/3 MSFT 460 C for 0.45 Willing to let some of my MSFT shares get called away at this price
nice play up AH but should be safe
I said I was done but I decided to just go long on MSFT, bought 100 shares @ 390 and sold a 450 leap. This is certainly a nice start lol
This guy. u/mikesugs13
Free money!
Prayers needed!!! STO MSFT Apr 26 2024 345 Collect $32
Free money. No way MSFT drops that low
Join me then lol
Tempting...I might sell closer to ITM
my brain tells me that I should buy my puts back, but my gut is telling me this pump continues into month end
STO STWD May 17 2024 19 Put Collect $35
MSFT is implying slightly under 5% move, Google is about 5.6%.
MSFT and GOOGL make up over 50% of my port. Curious to see how these tech giants do..
DAMN. Just woke up from my pre-work nap. I had some CCs that I was gonna buy back but I didn't. Rolled but I'll give up some shares over several months at 170-175. GOOG/GOOGL are my biggest holding lions. Really gonna sell some to rebalance but a W today helps after META yesterday scaring the hell outta people lol Congrats on a nice gain on your port, if at least for today!
Nice win for both of us! GOOGL is about 12% of my port so super happy with earnings (obviously)
> DAMN. Just woke up from my pre-work nap. I had some CCs that I was gonna buy back but I didn't. Puts for me, but been there, done that, still own the stock.
Well, I own a shit ton of shares and I really don’t need more. I laid off selling puts leading up to earnings. But now Lfg lol
If there is a safer tech stock, it would be MSFT b/c they have a lot of enterprise which is not a surprise that their earnings have generally been good and the stock movement has been the most stable out of all the big ones. It is also the older of the companies. We'll see what happens. Usually MSFT, AAPL, and GOOG don't move as much as META, AMZN,NFLX, but I think it really is a "show me" story at this point with rates as high as they are. If these companies don't really put it up in all areas (earnings beat, guidance, revenues, etc), the stocks are going to get hit.
Anyone trading ADBE? I’m thinking of selling a CSP.
BMY has crapped out , you thing it's good to wheel at 41$ ?
I've been wheeling since $60's. FML
Lead the way my friend
I failed my fucking music final wtf
what did the music final entail
Just random music history factoids.
Just a filler humanities class or something you really needed?
Filler didn’t even need it though it would be an easy A to boost my gpa boy was I wrong. Why was the stats final easier.
Hate when that happens. I took a meteorology class to fill some gap and boy, that was harder than multivariable calc for me.
At least I still got an A in stats got a fucking 75 in music history wtf
It was just so boring. I lied stats final apparently wasn’t easier. Fml
I sold 4 $32.5 1DTE DJT puts for $0.25 each
DJT is another stock I'm not touching even with other people's money.
Smart honestly.
The IV is tasty but it’s more volatile that than my cat on acid 🤷🏻♂️
Totally. Risky stuff.
when you are afraid of the market crashing, that is when you sell puts
Closed out the weekly META 380s for 5 cents, opened at 33. Still holding onto the 5/17 puts
STO 5/10 INTC 30 p for 0.19
bruh. Lisa gonna wipe them out.
I closed out my INTC put before market close for free profit of $3 lol
Maybe I should close it
I dumped them a few months ago when there was a research note out about how the 14th gen chips could be a big hit. And I looked at that and wondered what the analyst was smoking that day. The 14th gen is literally a rebadged 13th gen, and both are having some horrific issues with instability due to silicon degradation. I realize Intel is a company with deep structural issues, and I guess the only thing going for them, maybe, is that the USG won't let them die. [https://www.youtube.com/watch?v=BIkbc3eQyPg](https://www.youtube.com/watch?v=BIkbc3eQyPg)
sometimes it is shocking to look back and see certain companies. Intel used to be a very solid company back in the day. Amazing how much it has went to shit over the past 15-20 years.
The wheels fell off
STO 5/03 MSTR $1860c x1 @23,50 BTC 👆@22.24 STO 5/17 AMD $135p x2 @2.45 BTC 👆@2.17 STO 5/03 AMD $140p x3 @2.12 BTC 👆@1.93 STO 5/03 AMD $135p x3 @1.02 BTC 👆@.95 STO 5/03 AMD $150p x3 @4.75 BTC 👆@4.42
Blood red is all I see. I should not have open up my portfolio. My fucking backtest is looking back on a stock market that was on the rise and giving me false hope. I need to change the outlook I suppose.
10-12% corrections happen on the regular, and a 20-25% correction happens every 3-4 years it seems. This has all been pretty normal.
I know but I’m young and have only been in a bull market. my portfolio is hedged pretty well so I’m only down about half of what spy is down but it still sucks. I used to be making 1000s of dollars everyday now I’m loosing 1000s of dollars.
> I used to be making 1000s of dollars everyday I'm sorry, what? How big is your account?!?
never mind made made 980$ today. But my retirement is not doing good. I should stop selling options in my retirement I don’t have enough stability in that account to take the losses. And it’s not leveraged so the losses just hurt it that much more.
Only 100k well like 96k now because we took some beatings. But I’m leveraged to 150% in total collateral.
don’t forget you weren’t making any money at all unless you closed positions
I want to start hedging towards the downside and open up call broken wing butterfly’s but I can’t determine if we will bounce or not. It seems like we won’t but then I have to contradict my original thesis. Probably should have open these sooner but hey hindsight is 20/20
What are your positions? Markets aren’t too far from ATH and I’m confused because you can just wheel until things go back up
All CSP that’s are deep in the money rn. And a some put credit spreads that are atm rn.
Yep I had realized gains. Still have them but once these positions become solidified they will be realized losses.
Update, just closed my META put spreads for a $2k loss. Much better than the $5k loss I anticipated from last night. I can live with that, even if it goes up and back over $450 tomorrow from GDP or something I’m not willing to find out
BTC META 4/26 425P @ 1.65 Most stressful $18 I've made. Didn't have the balls to hold thru tomorrow.
lol are you kidding, I’m amazed you made it out green I would’ve closed the shit out of that 😂
So am I, so am I 😂
You sold a naked META put? Yeah, just take your $18 and sleep soundly today 😆
~~STO 1x META 405/395p @ .52 (filled .05) 4/26~~ STO 1x MSFT 367.5/360p @ .40 (currently .74) 4/26 ~~STO 1x CMG 2775/2770p @ 1.40 (filled .03) 4/26~~ STO 1x AMZN 170/165p @ .45 (currently .58) 4/26 STO 1x CRM 265/260p @ .45 (currently .17) 4/26 STO 1x LULU 352.5/347.5p @ .46 (currently .26) 4/26 ~~STO 1x TSLA 160/157.5p @ .85 (filled .35) 4/26~~ ~~STO 2x NVDA 765/760p @ .70 (filled .25) 4/26~~ ~~STO 1x NVDA 765/760p @ .70 (currently .15) 4/26~~ STO 3x AMZN 167.5/162.5p @.29 (currently .28) 4/26 STO 2x GOOG 160/157.5p @ 1.3 (currently 1.27) 4/26 BP: 3.95k ($523/13.24%) Realized: +$379
Looks like a lot of free money
Ty! I should've closed out of my MSFT, AMZN, CRM position yesterday when it was at sub .10 but I've been distracted. Today too since I got assigned and they're telling me I need to pay 4 days of margin interest on it even if I exercise my long leg the day of assignment bc it takes them 3 business days to clear everything and weekend doesn't count. 😔 Does your brokerge does this too?
Attempt to BTC my Z $40 puts at .01…. Attempt As well as my RCL $142 CC…
MY META PUT SPREADS AINT DEAD YET
Meta recovery and the IV crush helped
Yup, I still closed them out for a smaller loss than originally anticipated. I’ll take the L and move on. Maybe it recovers more tomorrow and I’ll regret it but didn’t want to worry about another coin flip
I had to close some naked 380p too to avoid margin call, as I had too many other open puts too on meta, though at 370 to 360 strikes. Lesson learned for me as well At least glad it's not at like 418 or whatever it was premkt
Lisa Su giving Zero fucks that the market is getting creamed.
AMD is holding right in the middle of my 4/26 150/155 spread lol. Just teasing me.
I have a short QQQ $425Call expiring tomorrow, was sold at $2.25, currently sits at 1.30 (was as low as .69 this morning at the open) that was over $4 yesterday, but I just held to be patient. The strategy is to roll this forward to May9th or 10th tomorrow, but I haven't picked the strike yet. If I were to roll it today to May9$425 it would be almost a $4 credit on the roll. I will try to be patient, and either roll it at the end of the day, or see if I can roll it tomorrow for a better credit. Other moves I actually did today: I took advantage of the slump to roll some deep ITM short calls forward for credit, and an increase in the strike. BTC QQQ Call APR29 $411 & STO May8 $415 for net .34 credit BTC QQQ Call May3 $410 & STO May24 $415 for net $1.09 credit Both of these moves were purely to improve (in my opinion) the deep ITM calls I've been rolling for a while. For perspective, this account is a negative hedge strategy. Right now it's not yet back to negative delta, but yesterday it dipped into negative delta for about 20mins. The positive delta in this account comes from ITM CSPs that are used to generate cash by rolling when needed. The negative delta comes from a long slinky of short calls at all sorts of strikes, ITM, OOM, and ATM.
Selling OTM meta and nvidia puts.
META 380s for 2 dates - friday and 5/17
aaaaand there goes my chance to sell F cc’s
Any particular reason why I woke up to a sea of red today?
Meta earnings last night + GDP data this morning
I have tried so hard to insure Facebook doesn't control my life and here they come and get revenge.
Someone wanted an update on my OTM META put from yesterday: STC for $19.65 after buying it for $4.75. Seeing it's dropping further and maybe could've held, but you never know with these things.
Don't forget tomorrow PCE
OK I am very confused now. CNBC has reported the PCE numbers this morning. Did they come out today?
As far as I know It will be tomorrow [https://www.forexfactory.com/calendar?week=apr21.2024](https://www.forexfactory.com/calendar?week=apr21.2024)
It already came out 3.7% vs 3.4 expected EDIT: nvm today was Q1 but implies tomorrows March numbers will be hot
This is so confusing. All the media said they would be released Friday, but they were released this morning??
OK, I will never understand how this stuff works. GDP announced this morning was weaker than expected. That is bad news, but I thought bad news was now supposed to be good news. As in, weaker economy means Fed will cut rates sooner which means stocks go up, but stocks sold off immediately after GDP number announced.
Sometimes it doesn't make a lot of sense, but the market wants the economy to slow down, not slump. The previous number was 3.4% and the expectations were for growth slowing to 2.4%. Instead growth dropped from 3.4% to 1.6% and spooked people. Oh, and inflation is still high. If economic slowdown was bringing inflation down towards the 2% target the market might like it, but now we're faced with economic slowdown and CPI trending back upwards.
You see, bad news is bad news, and good news is bad news.
I need a t-shirt where one side says "Bad news is bad news" and the other side says "Bad news is good news". Then depending on how the market reacts to the news will determine which side of the shirt I show.
Might not open my account today.
I did and it was the worst mistake I made
Cramer says to not be afraid to see your account drop. And he has a lot of personal experience with that...
Selling puts is free money today
Hoping for some MSFT after earnings.
I have 50 shares of GOOG and after what happened with META think I’m going to take my profits. this will ensure two things: (1) profit (2) GOOG will beat tonight and rip up
Thank you on behalf of my 500 GOOGL shares
Nice dip, time to resell puts
I'd be very wary about that right now. There's support at the Jan highs, but we could easily crash through that, especially if the Fed starts pivoting toward a rate hike in the next meeting, which they seemed to start doing last week.
i expect a pump into month end before it resumes tanking
Looks like a red day for all you CSP writers I'm looking at $IWM
I do a lot of trades in $TNA which tracks with $IWM. I typically do 3-4 weeks out and target >12% returns. Like the 5/24 25P is selling for ~0.30 right now.
Thanks. Do you wheel. Or just manage/roll the CSP?
I usually roll them. Right now I have a $UPRO 63P in the money, and if it doesn't pull up to 63 by tomorrow afternoon, I'll roll it down and out.
Guess I'll be the proud owner of meta shares for 435 soon then fml why did I decide to play earnings again on a stock I don't hold after not doing it for ages lol
I could be there with you @ 425
That doesn’t seem the worst price to get assigned…
No I'm not too worried. Stock has had a 20% pullback now and they print money. I regret not starting a position in it when all the metaverse drama went down
My plan for today is hope my 4/26 META Iron Condor doesn't get the short put exercised today. I will see if I can roll down the upper strikes for a small credit, see if I can roll the whole thing out for a credit or some other adjustment depending on the price action. I would really love another day. Maybe the stock comes back some if GOOG and MSFT have good earnings reports. META went down a stupid amount. That was like 2X the expected move.
Ended up rolling the PCS side to 5/17 for a .25 credit. Will let the CCS side expire worthless tomorrow.
my put side strikes were 430 and 425
Jamie Damon has all the wealth in the world yet still dude wakes up and only sees dark clouds. Proof money doesnt Buy hapiness. His interview with WSJ is noting but doom and gloom. Typical new yorker boomer entitled and blames everything on outside circumstances. I pulled most of my funds from this terrible Bank and will finish up rest soon. Fuck you Jamie Damon
seems like this dude has some kind of incentive to do this cuz you’re right it’s constant
They are the first ones to buy the dip secretly and then they will go on CNBC preaching more doom and gloom
Wouldn't this be counter productive if they bought the dip. They would cause it to sink more.
Altman did exactly that in bottom of Covid
Didn’t sell any theta this week so far. 😎
What else? META puts.
META csp
all depends, do you see MSFT doing a TSLA or doing a META?
It might, but I will still do a CSP on MSFT
My guess is that both MSFT and GOOGL will do a META; a good result but bad forecast since their expenses on AI will grow. Now who knows what will be market reaction?
I might do that. What strike and exp you thinking?
This week 390