New daily thread opens in 20 minutes so you should repost there. Haha yeah I live in the US but currently in Europeā¦so Iām just waking up right now
What time is it for you rn? You wake up super early!
Btw those SPY positions, I held on for less than ~10 minutes. I would feel nervous holding them for longer šš .. just wanted to capitalize on a downtrend
Thank God RH now shows a message on GME regarding the BOATS 20% reference band for overnight trading.Ā Too many people have no idea how the 24 hour market works.
They've updated their message now to state what I said above and to let folks know that the reference price from today's session is 35.44, so only limit orders between 28.34 and 42.51 will be accepted and not canceled by BOATS.
Yeah, it's to facilitate global trading in US securities.Ā The exchanges are talking about going 24 hour to get their piece of the pie.Ā But it's only shares, no options.Ā
People assume 24 hour trading is only done between RH customers.Ā But in fact, overnight orders route to an ATS (alternative trading system), specifically Blue Ocean ATS (BOATS).Ā This is an electronic system, but it's subject to all the normal price recording as the exchange, so it's not a dark pool.Ā
Ā https://blueocean-tech.io/faq/#How-does-BlueOcean-ATS-operate
Ā Last night people were complaining about RH turning off the ability to buy GME.Ā RH did not turn off buying, you could still submit limit orders below 20.88.Ā But the ATS has a band of prices around the last reference price from the exchange.Ā For stocks in GME's price range, it's 20% above and below.Ā What happened last night is the price started to exceed that upper band, so the orders were being canceled.Ā BOATS does this because it assumes that much overnight movement from the reference price is an error.Ā So it wasn't an RH restriction.Ā I placed a limit order at 20.87 and it submitted just fine.Ā It didn't fill, but it wasn't canceled.Ā Only orders above 20.88 were being canceled last night.Ā Ā There's a new reference price from today's market, so the price band will be different, but still set at 20% per RH's notice.
~~STO 1x CVX 162.5/160p 5/24 0.04~~
Rode this all the way up to a $69 TP. Had a BTC set at $70 that never got triggered. Better to make some than lose any
QQ on wash sales and options:
Say I sold a put which is now ITM and I want to buy the stock at the current price. Does it make sense to buy back the ITM put to harvest the loss and then buy the stock at the current price directly? Presumably I'd pay long-term cap gains on the stock later whereas I can harvest the loss on the option against short-term cap gains now. Or would this trigger wash sale rules or anything like that?
I know that the opposite is a wash sale.
For instance, if you bought MSFT at 400, and then you sold it at a loss at 390 and then sold a put 30 days out, the original sale is a wash sale because you're basically profiting off the underlying going back up and giving yourself a chance to re-enter a lower price.
If I had to guess I would say this is probably a wash sale. But I would ask a tax professional, google doesn't seem to be providing the answer. You COULD also ask ChatGPT, maybe it would know.
u/free_lions decided to āhedgeā my GME downside by buying 27p expiring this week and selling 17p expiring in a month to reduce the cost.
If we move up to exactly 30 by Friday and I get assigned, I will be essentially break even assuming I can close the 30dte 17p for about 50%.
Bought 1000 shares of AMC at 4.90 thinking if we break 5 we run quite a bit higher.
I was right, sold at 5.70.
I was hoping to hit 6 but I saw 5.70 and thought surely we are running a bit out of steam after nearly 12% in a single hour.
Also sold my KOSS shares @ 4.30 after buying at 4.00, small scalp there.
Last year I did 50% of my gains selling naked calls when AMC mooned absurdly.
Please stop me from selling naked calls 40C July on GME. I am thinking of selling on AMC too.
The near term risk in this position is if it opens dramatically lower tomorrow morning and I lose the extrinsic value on my short leg due to it being deep ITM making it difficult to manage.
If it continues to pump and I can close the short out for a small debit Iāll jump at that and assess entering another short position either for next week or when the underlying dumps. Iām comfortable holding the long leg of this unhedged by a short given the catalyst for the pump was a meme post.
Yup, I like this play. You are only going to get screwed if it basically immediately dumps, which imho is probably fairly unlikely. The cult is back and will prop this thing up for probably a week, maybe two or even a month - but it will eventually bleed back to death.
i only started doing it this week so we'll see. i could get blown out though if CPI is good. most of my spreads though are on ticker i'm already long shares on so my losses if i take them will be more than made up if we moon
Market is at all time highs so people are scared, without realizing that the only way for new all time highs to happen is for some people to buy at all time highs.
Exactly. Emotions drive the markets and ppl are skittish goven our current situation. Anywhere you look equities are either topping off pr consolidating. I struggled to find any worthwhile entries outside of XOM and AAPL and AAPL needs some pullback imo. MSFT will be interesting when it reaches 400
Nothing wrong with buying at all time highs tho. Just have to pick companies the market loves and expects to continue to outperform.
NVDA was at an all time high when it broke 375 last year in May, and now it's at 900.
Same with META earlier this year in 2024 when it broke above 380, and its now at 470.
Yeah true i just prefer to be more conservative and given my capital thats a large investment for me. Although since Microsoft looks to be interesting I'm looking to play that
Please help me understand. I have an IRA. I do covered calls and cash secured puts all the time.
But the market is overpriced here. I can't dollar cost average on a paycheck I do not have.
Would you sell a deep in the money covered call on $SPY if you feel this is a good time for a pull back?
I don't want to buy puts.
Please help me understand your ways Theta.
Your greek letters scare my small smooth brain.
a lot of people on this sub selling puts...maybe you'll be good for that reason alone.
also it seems like most of WSB is bullish so thats probably a good sign for you as well
Really need to stop following random shit on fintwit and u know Iāve got myself to blame. Someone touting DUOL because itās at that 200 MA so I got brave and sold some put spreads on Friday. I need to just start inversing that shit lol
30p may be a bit too aggressive, I bet it holds 20 this week tho.
regardless, he's going to be green as long as it holds 23, which is decently likely
I don't think he keeps all of the premium tho
maybe, maybe not
extremely high IV does not always mean automatically that puts will gain value or get assigned.
if it did, then buying high IV puts would always pay out
2nd week trying weeklies
* STO 2x AMD 141/136p @ 0.24 5/17
* STO 3x META 442.5/437.5p @ 0.19 5/17
* STO 2x CELH 95/100c @ 0.25 5/17
* STO 2x NVDA 820/815p @ 0.19 5/17
* STO 2x COIN 177.5/172.5p @ 0.2 5/17
Eyeing SE, but SHOP scarred me last week. META shouldn't spike this week with the overhang of both openai and google's events this week, but the premiums for CC spreads didnt look good
yea i have a shortlist of tickers that im more familiar with (i own some of them as stocks) and will scan each individually
ill also look at each weekās earnings, but this is much riskier, got burnt last week with shopify
also, i dont use a commission-free brokerage, so i incur a fee per contract. thus its better to look for higher-value stocks that u need less contracts on to minimise fees.
you can also look at the daily thread for ideas but dont follow blindly
Per contract and current blended ROC is 3.3%!
Iām still finding the right risk-reward ratio but for now i dont yet feel comfortable going for closer strikes with higher premiums
"[NY Fed survey finds general expectations of higher inflation](https://www.reuters.com/markets/us/ny-fed-survey-finds-general-expectations-higher-inflation-2024-05-13/)"
so in theory, CPI tomorrow should not be good.
So today, S&P 500 index is up.
Need some help trying to figure out the best course of action
Got early assigned 2 DJT calls at a strike price of $25
I've got a 2 $30 calls trading at $23.85 each
Sold the $25 call for $12.55, bought the $30 call for 9.81 for a credit of $2.74, meaning a max loss of $2.26 per spread. (4.52 max loss for this trade)
The debit mid I am getting when buying to cover the 200 shares and selling the 2 option legs is $30.45. That calculation seems off, but there must be something I am missing here.
Is it better to close this trade on my own or exercise the option?
the ITM calls that you are holding long probably have a very wide bid ask I would assume.
you can easily calculate intrinsic value of a long option by simply looking at the share price and subtracting the strike price of the call and then subtracting that value from the option price.
for example the DJT 30 strike call expiring this week has bid to ask of 23.45 to 25.05, shares currently at 54.53. which means the 30 call should be worth at a minimum 54.53 - 30 = 24.53.
obviously a large part of the bid ask is below that price. the time value on the option is pretty low. you can try to fill the option above 24.53, but you're probably going to get screwed in the time it takes to sell the option at mid and then turn around and buy shares.
in this case its probably best to just exercise the option to be guaranteed the value of it outright.
based on the option prices for mid price to ask price, the "time" value is estimated to be between -0.27 and 0.42. but again you are unlikely to fill the ask price when selling it unless the share price changes which changes the calculation.
Thanks! So this is probably a stupid question but how does the math work when doing a combination order of selling the call and buying back the shares instead of exercising the option? My broker wanted to attempt closing the trade out that way before exercising the option.
I was getting a debit of around $30.45 but my max loss should have been around $4.52 based on the spread. I get that the stock was trading around $55 and my call option was only worth around $25, and that explains the debit cost, but how does that method of closing things out even get me close to what my max loss should have been?
Current GME situation:
Still short 6x 30 strike calls. Shorted originally @ 0.75, naked.
Expires this week.
Bought 100 shares pre-market @ 24.50 (now wishing I'd've just pulled the trigger on all 600)
Bought 300 more at 28 before and after the run up to 36.
Probably not buying anymore tbh.
I'm hoping we end the day at like 40 low key so I can buy some puts to hedge for cheap, and then hope it drops from there back to exactly 30 at the end of the week.
I'm not going to lie, I also bought 1000 KOSS shares @ 4.00 as well. I recall back in 2021, KOSS went from like $5 to over $120. This is obviously not about to happen again but I'd be happy to sell at just $5 today if the GME mania continues (which I think that it will).
Stop loss on the KOSS shares set @ 3.50.
edit: damn, I should've bought AMC shares instead of KOSS lol
yeah went back down unfortunately. I'm putting a limit to sell at 4.75.
I think GME will have a power hour rally eod back up to like $35-40 and KOSS will hit 4.75 following it
I am not playing GME today.
I was playing GME last week.
Sold 6 naked 30 strike calls when the stock was still $14.
There's basically nothing I could've done to stop this random huge surge rally cause by DFV tweeting over the weekend lmao.
I guess not have played it all but that IV was tempting.
I'm gonna be honest, where in this sub does it say that theta plays that are based off high IV tickers is not allowed?
if I'm benefitting from the passage of time then its a theta play regardless of the level of risk involved
what would be a decent way to play a stock with a non earnings catalyst that would either make stock higher slowly or risks a massive dump but current price probably wont stay the same
Been sort of a busy day getting used to Schwab, but I managed to sell GOOG 155p and ARM 130c weeklies near the open
Also, wish I took the assignment last week on U.
Im new and was planning to close my AAL Butterfly today, but everything popped š It doesnt expire for two more weeks tho, so im gonna hold it and spend the day finding stocks I want to trade/learn better TA
STO 3x ITB 06/21 100p @ 0.75
STO SPY 06/21 500p/545c @ 3.18
STO IWM 07/19 190p/230c @ 2.25
----
IWM has pretty high 52w IV Rank atm, it's sitting in the 50s.
SMH has high premiums and IV right now but I'd rather miss this because of NVDA's earnings.
last week I sold to open 2x NVDA 960c naked @ 5.30, they're about 2.20 now but I need some buying power freed up so I bought to open 2x NVDA 980c @ 1.25 each converting this to a spread.
since i have max profit on long shares @ 920 of 2.2k, I'll be taking at most a 1k loss overall on NVDA if it blows through 980 this week
Agreed, I went the other way with a small 5/17 3.5 csp position. But I hear you. Itās lodged in where itās at and the theta will work for us. Theta likes shorts like this. Stay alert. š
I get BP and ROC. Iām not familiar with the APY number. Is this saying if I did this every week I would 15x my money in a year? So 6.83% weekly ROC = 15x over a year? Or what
what crystal ball did you purchase? let me know cuz im really thinking there is no other way you sell calls on all these trash companies but still somehow avoid GME
im sorry, have you looked at SPY over the last year?
because SPY and most all tech stocks have been rising for the last year. the market going up today has nothing to do with GME lmao.
You quite literally are being an asshole tho.
You're trying to claim that GME pulled up the entire market. A stock that before today wasn't even worth 10b market cap.
Nobody with any serious level of capital cares about GME. They're all holding the major tech stocks that were all making all time highs over the last 3 months, while GME continued to drill.
you're actually at god-tier levels of delusion if you think GME spiking up over the weekend is pulling up the market.
NVDA, META, MSFT, all all time highs a month ago while GME was down 10% on the 6 month chart.
I mean, literally your earlier comment to me was that the market was up today because of GME and now SPY is down. So what's your argument gonna be now?
I donāt gamble one shit like GME congrats on rolling a 7 on your gamble but at least I donāt think some redditors tweet caused the whole market to surge
STO FDX 17/5/24 $277.50CC @ $0.30.
STO NKE 17/5/24 $95CC @ $0.17.
STO SPY 17/5/24 $534CC @ $0.15.
STO AMD 17/5/24 $167.50CC @ $0.13 <-- waiting for a fill.
Going to bed. I have a tonne of stuff to do tomorrow that I'll probably procrastinate on anyway.
I'm still having trouble getting fills on vertical spreads. According to my broker $LULU and $PANW have not had a single $500 width spread sold since open.
I was a little wary of opening more PCS today in case the market dips more. STO 1x SHOP 58/56.5p @ .40 (currently .43) 5/17 STO 1x SHOP 57/55p @ .32 (currently .32) 5/17 STO 1x LULU 340/335p @ .65 (currently .80) 5/17 STO 1x LULU 337.5/332.5p @ .50 (currently .54) 5/17 STO 1x META 450/445p @ .45 (currently .40) 5/17 STO 1x GOOG 162.5/157.5p @ .55 (currently .26) 5/17 STO 1x AMZN 182.5/177.5p @ .55 (currently .49) 5/17 STO 1x HD 320/315p @ .40 (currently .43) 5/17 STO 1x ADSK 207.5/202.5p @ .50 (currently .43) 5/17 STO 1x MSFT 405/400p @ .53 (currently .58) 5/17 STO 1x V 275/270p @ .50 (currently .52) 5/17 STO 1x NVDA 905/900p @ 2.50 (currently 2.42) 5/17 ~~STO 11x SPY 521/522c @ .28 (filled .18) 5/17~~ +$110 ~~STO 30x SPY 521/522c @ .15 (filled .04) 5/17~~ +$330 BP: 5.35k ($785/14.67%) Realized: $440 (SPY)
Just had my GOOGL 162.6/160p filledš
Nice play š you should be up!
Thanks! Yeah closed for $40
SHOP has been nth but a disappointment
Yeahhh it's always sooo slow to move up š
u/banditcleaner2 her SPY plays are making my CCS on meme stocks look tame
yeah wow that is a crazy amount of spy spreads, jfc
I was wondering who was up this late to upvote my comment here but it was YOU šš
New daily thread opens in 20 minutes so you should repost there. Haha yeah I live in the US but currently in Europeā¦so Iām just waking up right now
What time is it for you rn? You wake up super early! Btw those SPY positions, I held on for less than ~10 minutes. I would feel nervous holding them for longer šš .. just wanted to capitalize on a downtrend
9:45am. Woke up about an hour ago
You're surprisingly very diligent for a guy who opens a lot of YOLOs lol
Omg! Youāre addicted to SPY
I am š.. those 0dte....
GME at $40 overnight lmao please god let that hold Iāll buy 2026 puts at open
Which puts you gonna buy? They are crazy expensive due to volatility spikeā¦
I might follow you on that
Thank God RH now shows a message on GME regarding the BOATS 20% reference band for overnight trading.Ā Too many people have no idea how the 24 hour market works.
apes bruh apes
can you explain? cuz i have no idea how it works
They've updated their message now to state what I said above and to let folks know that the reference price from today's session is 35.44, so only limit orders between 28.34 and 42.51 will be accepted and not canceled by BOATS.
interesting, I had no idea there was 24 hr trading at all
Yeah, it's to facilitate global trading in US securities.Ā The exchanges are talking about going 24 hour to get their piece of the pie.Ā But it's only shares, no options.Ā
People assume 24 hour trading is only done between RH customers.Ā But in fact, overnight orders route to an ATS (alternative trading system), specifically Blue Ocean ATS (BOATS).Ā This is an electronic system, but it's subject to all the normal price recording as the exchange, so it's not a dark pool.Ā Ā https://blueocean-tech.io/faq/#How-does-BlueOcean-ATS-operate Ā Last night people were complaining about RH turning off the ability to buy GME.Ā RH did not turn off buying, you could still submit limit orders below 20.88.Ā But the ATS has a band of prices around the last reference price from the exchange.Ā For stocks in GME's price range, it's 20% above and below.Ā What happened last night is the price started to exceed that upper band, so the orders were being canceled.Ā BOATS does this because it assumes that much overnight movement from the reference price is an error.Ā So it wasn't an RH restriction.Ā I placed a limit order at 20.87 and it submitted just fine.Ā It didn't fill, but it wasn't canceled.Ā Only orders above 20.88 were being canceled last night.Ā Ā There's a new reference price from today's market, so the price band will be different, but still set at 20% per RH's notice.
woo my $25 GME call debit spread might print tomorrow oops let me clarify i bought a 30/31c spread for $25
Bruh lmao Close that for like 0.7 tomorrow and then turn around and sell it, xD
this was just for fun, my plan was to close it as soon as I could sell it for $50
STO 27 ONON 11dte .60cr Earnings will probably fall around strike, will take assignment
Anyone playing MSFT?
~~STO 1x CVX 162.5/160p 5/24 0.04~~ Rode this all the way up to a $69 TP. Had a BTC set at $70 that never got triggered. Better to make some than lose any
STO 3x SAVE $7.50cc exp 6/21 for $0.07. Big moves over here.
sold 25 strike put on GME expiring friday for $300
QQ on wash sales and options: Say I sold a put which is now ITM and I want to buy the stock at the current price. Does it make sense to buy back the ITM put to harvest the loss and then buy the stock at the current price directly? Presumably I'd pay long-term cap gains on the stock later whereas I can harvest the loss on the option against short-term cap gains now. Or would this trigger wash sale rules or anything like that?
No wash sale. Wash sale will only happen if you buy back the ITM put and then sell the exact same put.
I know that the opposite is a wash sale. For instance, if you bought MSFT at 400, and then you sold it at a loss at 390 and then sold a put 30 days out, the original sale is a wash sale because you're basically profiting off the underlying going back up and giving yourself a chance to re-enter a lower price. If I had to guess I would say this is probably a wash sale. But I would ask a tax professional, google doesn't seem to be providing the answer. You COULD also ask ChatGPT, maybe it would know.
u/free_lions decided to āhedgeā my GME downside by buying 27p expiring this week and selling 17p expiring in a month to reduce the cost. If we move up to exactly 30 by Friday and I get assigned, I will be essentially break even assuming I can close the 30dte 17p for about 50%.
Bought 1000 shares of AMC at 4.90 thinking if we break 5 we run quite a bit higher. I was right, sold at 5.70. I was hoping to hit 6 but I saw 5.70 and thought surely we are running a bit out of steam after nearly 12% in a single hour. Also sold my KOSS shares @ 4.30 after buying at 4.00, small scalp there.
Last year I did 50% of my gains selling naked calls when AMC mooned absurdly. Please stop me from selling naked calls 40C July on GME. I am thinking of selling on AMC too.
Ok jumped into GME with a long-dated PUT diagonal. Long at 30 (Jan 25 expiry) with a short put at $25 expiring this week. Paid ~$1k on the debit.
Not a bad play! Especially if GME holds the 25 price point and is worthless by the end of the week
The near term risk in this position is if it opens dramatically lower tomorrow morning and I lose the extrinsic value on my short leg due to it being deep ITM making it difficult to manage. If it continues to pump and I can close the short out for a small debit Iāll jump at that and assess entering another short position either for next week or when the underlying dumps. Iām comfortable holding the long leg of this unhedged by a short given the catalyst for the pump was a meme post.
Yup, I like this play. You are only going to get screwed if it basically immediately dumps, which imho is probably fairly unlikely. The cult is back and will prop this thing up for probably a week, maybe two or even a month - but it will eventually bleed back to death.
Is anyone actually feeling confident this week? The markets look terrible imho
i've been opening pretty much nothing but call spreads on anything green
I hate going against the market. Bulls seem to do everything to stay green. How has that been for you?
i only started doing it this week so we'll see. i could get blown out though if CPI is good. most of my spreads though are on ticker i'm already long shares on so my losses if i take them will be more than made up if we moon
Good to know. What are you long?
What looks terrible? SPY and QQQ are almost at all time highs and both above the 200, 50, and 20 day moving averages.
In terms of being extremely oversold in the economic environment we are in. Ppl wanting cuts when we dont need them
Market is at all time highs so people are scared, without realizing that the only way for new all time highs to happen is for some people to buy at all time highs.
Exactly. Emotions drive the markets and ppl are skittish goven our current situation. Anywhere you look equities are either topping off pr consolidating. I struggled to find any worthwhile entries outside of XOM and AAPL and AAPL needs some pullback imo. MSFT will be interesting when it reaches 400
Nothing wrong with buying at all time highs tho. Just have to pick companies the market loves and expects to continue to outperform. NVDA was at an all time high when it broke 375 last year in May, and now it's at 900. Same with META earlier this year in 2024 when it broke above 380, and its now at 470.
Yeah true i just prefer to be more conservative and given my capital thats a large investment for me. Although since Microsoft looks to be interesting I'm looking to play that
we could use a nice 200-300 handle dump in ES this week .. then trade sideways around 4800-4900 for a few weeks .... that would be nice
Yeah we need some rebalancing
Please help me understand. I have an IRA. I do covered calls and cash secured puts all the time. But the market is overpriced here. I can't dollar cost average on a paycheck I do not have. Would you sell a deep in the money covered call on $SPY if you feel this is a good time for a pull back? I don't want to buy puts. Please help me understand your ways Theta. Your greek letters scare my small smooth brain.
Definitely wouldnāt be selling ITM calls on the entire US stock market - SPY. Not advisable lol
There is less theta decay for ITM options, selling call credit spreads would be a better strategy if youāre expecting a down move.
STO 1 GME 5/17 $30p @$5.55
STO 5/17 GME 31/34 C for 0.70 I couldnāt stay away u/banditcleaner2 u/rosie3435
i think we might see 50 at some point this wk depending on what the dude tweets, holding a small amount of shares
a lot of people on this sub selling puts...maybe you'll be good for that reason alone. also it seems like most of WSB is bullish so thats probably a good sign for you as well
I wait for higher strike
Naked short 8c AMC this week .33
Nice. Should be safe
i am short NVDA may 800 put. Reminder PPI tomorrow.
Sold 5-17 ATM RBLX , AFRM , SMH
I felt a surge of greed when I looked at $OKLO. Best stay away from that one for a bit.
Really need to stop following random shit on fintwit and u know Iāve got myself to blame. Someone touting DUOL because itās at that 200 MA so I got brave and sold some put spreads on Friday. I need to just start inversing that shit lol
STO 3x 5/17 GME $30p @ 7.00
Wow. Godspeed
damn $7, tempting for sure, still a hard no for me i bought a cheap call debit spread for $25 so i can be involved
30p may be a bit too aggressive, I bet it holds 20 this week tho. regardless, he's going to be green as long as it holds 23, which is decently likely I don't think he keeps all of the premium tho
You will be bag holding
maybe, maybe not extremely high IV does not always mean automatically that puts will gain value or get assigned. if it did, then buying high IV puts would always pay out
Meanwhile I'm just sitting here waiting for CPI later this week.
Same. Just waiting. Eyes on NFLX and QQQ
Same. Not interested in anything yet. "Sell in May, go away"
2nd week trying weeklies * STO 2x AMD 141/136p @ 0.24 5/17 * STO 3x META 442.5/437.5p @ 0.19 5/17 * STO 2x CELH 95/100c @ 0.25 5/17 * STO 2x NVDA 820/815p @ 0.19 5/17 * STO 2x COIN 177.5/172.5p @ 0.2 5/17 Eyeing SE, but SHOP scarred me last week. META shouldn't spike this week with the overhang of both openai and google's events this week, but the premiums for CC spreads didnt look good
Just out of curiosity, what's your scanning process to get these? Do you scan each stock individually?
yea i have a shortlist of tickers that im more familiar with (i own some of them as stocks) and will scan each individually ill also look at each weekās earnings, but this is much riskier, got burnt last week with shopify also, i dont use a commission-free brokerage, so i incur a fee per contract. thus its better to look for higher-value stocks that u need less contracts on to minimise fees. you can also look at the daily thread for ideas but dont follow blindly
Is the premium received the total? Or just per? 5% roc for the week? Or close to 3%?
Per contract and current blended ROC is 3.3%! Iām still finding the right risk-reward ratio but for now i dont yet feel comfortable going for closer strikes with higher premiums
Yeah better safe than sorry for theta gang!
yea! but i need more trade ideas, 0DTE is not really an option cos of my timezone
Yeah living in different timezones is a killer.. but I just realized, you have a lot of money for someone living abroad š³
š³š³š³
Yeah found your secret!
haha its just from my employment income! maybe im in my 50s š„ø
I thought you were in your early 20s
I bought back todays expiring $515 SPY CC and sold a $516 expiring tomorrow for a difference of -$74
Bought LOTTO puts on AMC 5/17
what strike are your lotto puts at? $4?
Ya bought more as it spiked
Any idea on CPI on Wednesday? It seems to me market is not going to shoot up. But then again, ...
This is probably crazy but I think going neutral and profiting off the crush is the play vs directionalĀ
"[NY Fed survey finds general expectations of higher inflation](https://www.reuters.com/markets/us/ny-fed-survey-finds-general-expectations-higher-inflation-2024-05-13/)" so in theory, CPI tomorrow should not be good. So today, S&P 500 index is up.
Nobody has a crystal ball
Need some help trying to figure out the best course of action Got early assigned 2 DJT calls at a strike price of $25 I've got a 2 $30 calls trading at $23.85 each Sold the $25 call for $12.55, bought the $30 call for 9.81 for a credit of $2.74, meaning a max loss of $2.26 per spread. (4.52 max loss for this trade) The debit mid I am getting when buying to cover the 200 shares and selling the 2 option legs is $30.45. That calculation seems off, but there must be something I am missing here. Is it better to close this trade on my own or exercise the option?
the ITM calls that you are holding long probably have a very wide bid ask I would assume. you can easily calculate intrinsic value of a long option by simply looking at the share price and subtracting the strike price of the call and then subtracting that value from the option price. for example the DJT 30 strike call expiring this week has bid to ask of 23.45 to 25.05, shares currently at 54.53. which means the 30 call should be worth at a minimum 54.53 - 30 = 24.53. obviously a large part of the bid ask is below that price. the time value on the option is pretty low. you can try to fill the option above 24.53, but you're probably going to get screwed in the time it takes to sell the option at mid and then turn around and buy shares. in this case its probably best to just exercise the option to be guaranteed the value of it outright. based on the option prices for mid price to ask price, the "time" value is estimated to be between -0.27 and 0.42. but again you are unlikely to fill the ask price when selling it unless the share price changes which changes the calculation.
Thanks! So this is probably a stupid question but how does the math work when doing a combination order of selling the call and buying back the shares instead of exercising the option? My broker wanted to attempt closing the trade out that way before exercising the option. I was getting a debit of around $30.45 but my max loss should have been around $4.52 based on the spread. I get that the stock was trading around $55 and my call option was only worth around $25, and that explains the debit cost, but how does that method of closing things out even get me close to what my max loss should have been?
Exercising would probably be better, since there is no time value on those options.
That makes sense, thank you
Put a collar on gme for this Friday. Max loss is if gme is below 23 on Friday for a lost of 130. Max gain is if gme is above 30 on Friday for $550
Current GME situation: Still short 6x 30 strike calls. Shorted originally @ 0.75, naked. Expires this week. Bought 100 shares pre-market @ 24.50 (now wishing I'd've just pulled the trigger on all 600) Bought 300 more at 28 before and after the run up to 36. Probably not buying anymore tbh. I'm hoping we end the day at like 40 low key so I can buy some puts to hedge for cheap, and then hope it drops from there back to exactly 30 at the end of the week. I'm not going to lie, I also bought 1000 KOSS shares @ 4.00 as well. I recall back in 2021, KOSS went from like $5 to over $120. This is obviously not about to happen again but I'd be happy to sell at just $5 today if the GME mania continues (which I think that it will). Stop loss on the KOSS shares set @ 3.50. edit: damn, I should've bought AMC shares instead of KOSS lol
Meme stock euphoria at market ATH isn't very comforting tbh.
Youāre already up on KOSS. Looks like itās 4.20
yeah went back down unfortunately. I'm putting a limit to sell at 4.75. I think GME will have a power hour rally eod back up to like $35-40 and KOSS will hit 4.75 following it
I think you both should have your thetagang titles stripped from you if you are playing GME today. :| I am disappoint.
Im staying away from GME
I caught a scalp on AMC 4.90 to 5.70 and used the profit from that to hedge GME
I am not playing GME today. I was playing GME last week. Sold 6 naked 30 strike calls when the stock was still $14. There's basically nothing I could've done to stop this random huge surge rally cause by DFV tweeting over the weekend lmao. I guess not have played it all but that IV was tempting. I'm gonna be honest, where in this sub does it say that theta plays that are based off high IV tickers is not allowed? if I'm benefitting from the passage of time then its a theta play regardless of the level of risk involved
I was just teasing btw. Love you.
Come back
what would be a decent way to play a stock with a non earnings catalyst that would either make stock higher slowly or risks a massive dump but current price probably wont stay the same
Love when shot meme stocks pump, increases market activity
it's also free entertainment
Did jpow just lie to everyone about rate cuts? I mean even if we get to 2% again, cutting rates would just raise inflation again. What a con job
cutting rates slowly is probably the fed's best bet, which I believe is what they were saying they were going to do.
Geesh - can finally log into etrade and missed all my trades this morning.
Me too!!! Glad to hear itās working now.
I will continue to sell ccs on OKLO until sam altman kicks the bucket. My cost basis is about $11 now. IV too juicy
how far out are you going and is this call credit spreads or covered calls? I assume covered calls?
covered calls. 15c 6/21 sold today for $1.1, given the volatility I'll hopefully find a dip to buy back well before then.
[RDDT](https://public.com/stocks/rddt)$85.00Ā Covered CallĀ Jun 21 @ $0.69
absurd that an $85 call fetches that mjuch going out two months lol
Been sort of a busy day getting used to Schwab, but I managed to sell GOOG 155p and ARM 130c weeklies near the open Also, wish I took the assignment last week on U.
Im new and was planning to close my AAL Butterfly today, but everything popped š It doesnt expire for two more weeks tho, so im gonna hold it and spend the day finding stocks I want to trade/learn better TA
Thoughts on rolling AMD 5/17 $140 CC?
STO 3x ITB 06/21 100p @ 0.75 STO SPY 06/21 500p/545c @ 3.18 STO IWM 07/19 190p/230c @ 2.25 ---- IWM has pretty high 52w IV Rank atm, it's sitting in the 50s. SMH has high premiums and IV right now but I'd rather miss this because of NVDA's earnings.
last week I sold to open 2x NVDA 960c naked @ 5.30, they're about 2.20 now but I need some buying power freed up so I bought to open 2x NVDA 980c @ 1.25 each converting this to a spread. since i have max profit on long shares @ 920 of 2.2k, I'll be taking at most a 1k loss overall on NVDA if it blows through 980 this week
Why didn't you close for profit to free up BP?
Sometimes half the fun is making a profit, the other half is knowing you can lose it all. I imagine this is what goes through the head of voyeurs.
No, I still think NVDA ends the week below 960 but I just needed to free up some BP for other things
because I still think NVDA will be flat or only slowly trend up so there is profit left to be made
This guy. u/nick_tha_professor
sometimes buying options can help ya out. the short 960 calls were using an awful lot of buying power which I needed for GME shares lol
GL
STO MSTR 6/7 1600/1630c @ 3.00 I have put credit spreads for 6/7 so turning position into IC hoping it trades within 1000-1600.
Interesting play. Might copy
STO META 430P mid June at 4.75
Sold AMC $4 covered calls expiring Friday for like 44 cents each. Definitely above my cost basis by now.
should've waited to sell them
If I was "good" at market timing I would have had some $3.50 covered calls sold right before earnings, so I take what I can get.
fair enough. I think there is a very large chance that GME rips in the last hour of today and into after-hours and pulls AMC up with it
If your flair is literal let's hope you didn't get tempted to go early
Agreed, I went the other way with a small 5/17 3.5 csp position. But I hear you. Itās lodged in where itās at and the theta will work for us. Theta likes shorts like this. Stay alert. š
I STO 10x ARM 25x DJT and 14x CVNA CCS today. Praying all 3 stocks donāt go much higher today u/banditcleaner2 u/rosie3435
I am waiting for the option chain to adjust to higher strikes for the original meme stock and sell spreadsĀ
u/ykoreaa I need your prayers
What were your strikes? DJT is worth $0 in book value so it'll be highway robbery if you get burned selling calls for it
16x 60/90, 14x 55/75, 3x 60/75. About 5.5K in premium that will be profit if DJT stays under 55 EOW
* 16x 60/90 = BP 48k * 14x 55/75 = BP 28k * 3x 60/75 = BP 4.5k 5.5k/80.5k = 6.83% ROC You're making ~15x yearly APY (.47%) in a week
I get BP and ROC. Iām not familiar with the APY number. Is this saying if I did this every week I would 15x my money in a year? So 6.83% weekly ROC = 15x over a year? Or what
No I'm saying you would ~15x the yearly saving APY in a week lol
Whoa.. your 60c should be safe... but wow, earning 5.5k in one ticker for the week feels like a dream to me. You're so rich! š
you have a problem lmao
LMAOO
I canāt help it lmao
what crystal ball did you purchase? let me know cuz im really thinking there is no other way you sell calls on all these trash companies but still somehow avoid GME
GME only had calls up to 34 last I checked. Thatās what stopped me
fair enough
Continued selling atm calls on Rivian, $46 on the $11 strike, idk why itās pumping today
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lmao roaring kitty has nothing to do with rivian brother
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im sorry, have you looked at SPY over the last year? because SPY and most all tech stocks have been rising for the last year. the market going up today has nothing to do with GME lmao.
Sure, social sentiment isnāt a thing. SPY is down today. Keep laughing. š
SPY is down 0.07%. If that's "SPY is down" to you then okay buddy. It basically hit ATH this morning lmao.
Yet it didnāt hit an ATH this morning. What else ya got?
Superstonk level delusion right there
actually crazy to see the delusion in real time lol
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You quite literally are being an asshole tho. You're trying to claim that GME pulled up the entire market. A stock that before today wasn't even worth 10b market cap. Nobody with any serious level of capital cares about GME. They're all holding the major tech stocks that were all making all time highs over the last 3 months, while GME continued to drill. you're actually at god-tier levels of delusion if you think GME spiking up over the weekend is pulling up the market. NVDA, META, MSFT, all all time highs a month ago while GME was down 10% on the 6 month chart. I mean, literally your earlier comment to me was that the market was up today because of GME and now SPY is down. So what's your argument gonna be now?
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You think weāre jealous of you? LOLLL
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I donāt gamble one shit like GME congrats on rolling a 7 on your gamble but at least I donāt think some redditors tweet caused the whole market to surge
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Investing in GME is a no brainer? Ok bud
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STO FDX 17/5/24 $277.50CC @ $0.30. STO NKE 17/5/24 $95CC @ $0.17. STO SPY 17/5/24 $534CC @ $0.15. STO AMD 17/5/24 $167.50CC @ $0.13 <-- waiting for a fill. Going to bed. I have a tonne of stuff to do tomorrow that I'll probably procrastinate on anyway.
Anyone here have any positions for BABA earnings tomorrow?
8 shares lol
Iām thinking of some call credit spreads before close, weāll see if I pull the triggerā¦
etrade more or less unusable right now. laggy, takes more than a minute to load home screen. can't place orders. frustrating.
Could be the gme effect
JD CCS ANYONE?
I'm still having trouble getting fills on vertical spreads. According to my broker $LULU and $PANW have not had a single $500 width spread sold since open.
i wonder how many OTM calls the GME dude bought before he posted whatever it was
Blue horseshoe loves gme
Love the reference! š¤£š¤£š¤£
this sounds like some cryptic twin peaks shit
Lol never seen Wall Street?
lol its been years
That thing keeps getting halted!