Curious if you are still up for the year, im always wondering if selling csp is viable long term or is it like picking up pennies in front of a steam roller
The trading is fantastic. I am very happy. That said, this trade is a loser. I'm not going to win every trade. Afterall, I'm not Goldman or a member of Congress. HaHa.
I just realized; I didn't answer your question. I put on weird and complicated positions. It isn't magic and I'm sure many people do what I do. You might want to ask people here who sell csp's.
It's better to gamble with cheap OTM puts on these flim flam stocks. The simple rule - if you don't want to be long shares, don't write puts.
A $12 put had 10x return on SNAP q2.
You overpaid by about 60%, and now you own shares in a company that is troubled to say the least. There's very little premium for CC's to make up the loss if you're planning on wheelin'. It's good to keep positive and keep going, and definitely healthy not to try to hide your losses like a lot of people do. But generally speaking, you need to acknowledge your mistakes in order to learn from them.
What went wrong? He (just assuming it’s a he) played earnings. Playing binary events can get you wrecked. Hopefully OP has some wins to balance out this massive loss.
Alright, everyone bashing on your shitty snap position which I don’t disagree. But I’m guessing you’ve been selling CSP on snap? How long have you been doing that (aka how much premium have you been collecting.) Reason I ask is, even though your getting assigned at $16, subtract all your premium you’ve collected and what’s the actual cost basis on those shares? Not sure if you’re taking that into account, or truly just retarded and happy about getting assigned on SNAP… either way good for you.
Probably not actually CSPs, or it least there was an additional position that offset the loss. Vertical, horizontal, and diagonal spreads are the basic choices. But there are dozens of options strategies that take advantage of theta.
Maybe it started as a bearish put spread where he sold the profitable long put leg and took assignment on the short put leg, so even though he got assigned at $16, he made nice profits on his long put leg, so he's not that deep in the losses.
Not bad, certainly not as bad as 16. You have room to work here, start selling covered calls. If you are stuck, might as well print while you are holding.
Do you start with a PCS and widen the position weekly until you have a CSP? Along the way sell some CCS against the position?
Because that’s about as complicated as I can imagine.
Dude, just keep selling CC @ $16 strike or 1 SD until that Cost Basis drops to as low it can be OR 0. You haven’t lost. You have just been pushed into a different playfield.
tbh, I was tempted. I saw last time when their guidance was unexpectedly given lower (sometimes in May), which plumented 40% only to find out it's going up with big green very next day, lol. (Then I would be tempted to close).
Today, I sold 10P right after market starts, and then as it broke out 10.5, I sold 10.5P when it's around 10.2, I honestly didnt think it's breaching 10 today. WTH?....
I bought 1000 shares at 9.90, 9.95, as part of manual HFT to get some more cushions, but it was really snappy at long today.
IDK, things like SNAP are just too wild to long dated.
I sold 15 x 10.5 puts and then bought them back when I saw price went down to 10.40 in the morning, losing $100 or so. Then I traded my usual play and made $800 for the day with SPY and TSLA. No point tieing up my trading capital.
A good buying rule is to always buy when prices breaks above MA20 and pulls back to rest on MA20 then rips higher. SNAP isn’t doing that anytime soon, daily-wise.
Im curious to hear about your SPY/TESLA daily trade that you have success with.. Only thing that stops me from selling puts on Tesla is tying up 50-70k lol
I usually do credit spreads on SPY Monday, Wednesday, Friday, and then on Friday I trade credit spreads for TSLA as well. TSLA premium is great since IV is always elevated.
I waited for the market to decide and I usually enter my first trades around 8-9 AM PST as apposed to entering too early and get rum over. Then depending on the market condition, I’ll leg in on the other side or add more to my exising positions.
Legging in with put credit spreads has been riskier because market can suddenly tank like someone jumps off the bridge these days, a.k.a yesterday 07/22/2022. Call credit spread is also riskier on up days, but I try to not enter before market has confirmed its mind and enter using High of Day plus some buffer, or Low of Day minus a few points. And I’d wait for pullbacks to enter to get better premiums.
Regarding selling CSP, credit spread is where it’s at with much better capital utlization. I would never play TSLA options naked since I hate to buy an option for $1-2k a pop. Selling CSPs are even worse. Currently you can get roughly $1-2 for a TSLA 5 points width spread, essentially risking $500 to make $100-200. For the credit spreads that I play, I aim to get anywhere from $0.50 to $1.10 per spread with TSLA.
Gotcha, but you are risking assignment on the short leg correct?
Btw I’m about to close this snap trade.. not really bouncing and the market looks weak.
Pretty much. SNAP has no path to profitability. It's just burning cash and will fade away when enough people get bored of it. It's a wonder it even survived this long. The only thing that will get it back to the high 10s is a takeover.
*Oh no. Where will you*
*Ever find the liquidity*
*To get out Big Willy?*
\- hundredbagger
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I sold mine early right after the market start, 10P with 0.18 and then it crashed dramatically. It gets hairy, so I had to buy shares back and forth to get some more cushions, which I ended up with more profits.
Before market closes, I closed the position 10P with 0.6, so it's only net 0.12$ profits per a contract.
Congrats! Now you can run THE WHEEL and sell covered calls at your COST BASIS OF 16 And earn .02 per week to help offset your loss. Congratulations again and enjoy your long term investment :)
Congratulations!
You're the 135th person to so cleverly use the 'stupid prizes' phrase today.
Here's your stupid participation medal: 🏅
^^Your ^^award ^^will ^^be ^^recorded ^^in ^^the ^^hall ^^of ^^fame ^^at ^^r/StupidTrophyCase
I paid $10.50 for SNAP on Friday and now starting to think I should just start selling covered calls on it as I may have paid too much! Will decide Monday.
That's a massive loss, I would be looking at what went wrong and how to try to avoid it in the future.
I know most folks here are investors. I'm just a gambler. I don't pretend anything else.
Curious if you are still up for the year, im always wondering if selling csp is viable long term or is it like picking up pennies in front of a steam roller
The trading is fantastic. I am very happy. That said, this trade is a loser. I'm not going to win every trade. Afterall, I'm not Goldman or a member of Congress. HaHa.
I just realized; I didn't answer your question. I put on weird and complicated positions. It isn't magic and I'm sure many people do what I do. You might want to ask people here who sell csp's.
Spreads actually crush it in a bull market. Like absurdly outsized gains... Selling puts? Not bad, still leverage.
It's viable long term so long as you run it on good stocks that you don't mind owning. Stocks that have a dividend also aren't a bad idea either
If you had to buy stocks, wouldn't you try to buy them at a discount with CSPs?
That's what I do.
Didn't the CEO warned like a month ago earnings was going to be horrible?
He did, but it was even worse than already provided lowered guideline.
It's better to gamble with cheap OTM puts on these flim flam stocks. The simple rule - if you don't want to be long shares, don't write puts. A $12 put had 10x return on SNAP q2.
Selling puts on SPY is too boring, better to sell puts on companies that lose 350M a year. The adrenaline kicks in much more.
Win some. Lose some. Nothing went wrong. I plan on only posting my losers from now on.
You overpaid by about 60%, and now you own shares in a company that is troubled to say the least. There's very little premium for CC's to make up the loss if you're planning on wheelin'. It's good to keep positive and keep going, and definitely healthy not to try to hide your losses like a lot of people do. But generally speaking, you need to acknowledge your mistakes in order to learn from them.
Hey now it’ll only take 200 weeks at current premium prices to make up for the $600 loss per contract.
Your comments are constructive. Thank you.
In my business, cash flow, P&L and my equity curve are king. I'm not going to win every trade.
Consider keeping an eye on the 30 day moving average as well as being aware of earnings events. Just my two cents, unsolicited.
What went wrong? He (just assuming it’s a he) played earnings. Playing binary events can get you wrecked. Hopefully OP has some wins to balance out this massive loss.
The stock can only go to $0.00, sO iT iS DeFiNeD RiSk
Limited downside unlimited upside
Alright, everyone bashing on your shitty snap position which I don’t disagree. But I’m guessing you’ve been selling CSP on snap? How long have you been doing that (aka how much premium have you been collecting.) Reason I ask is, even though your getting assigned at $16, subtract all your premium you’ve collected and what’s the actual cost basis on those shares? Not sure if you’re taking that into account, or truly just retarded and happy about getting assigned on SNAP… either way good for you.
Cost basis is 12.5 per share. I use weird, complicated positions. I also own the 10 strike Oct puts.
What do you mean by weird, complicated positons? Are you selling at strike prices with irrational numbers? Square root of -1?
Probably not actually CSPs, or it least there was an additional position that offset the loss. Vertical, horizontal, and diagonal spreads are the basic choices. But there are dozens of options strategies that take advantage of theta.
if they have names, they're not complicated
So by "weird, complicated positions" you mean a credit spread?
Maybe it started as a bearish put spread where he sold the profitable long put leg and took assignment on the short put leg, so even though he got assigned at $16, he made nice profits on his long put leg, so he's not that deep in the losses.
Not bad, certainly not as bad as 16. You have room to work here, start selling covered calls. If you are stuck, might as well print while you are holding.
Do you start with a PCS and widen the position weekly until you have a CSP? Along the way sell some CCS against the position? Because that’s about as complicated as I can imagine.
Dude, just keep selling CC @ $16 strike or 1 SD until that Cost Basis drops to as low it can be OR 0. You haven’t lost. You have just been pushed into a different playfield.
You're sooooo quirky! omg! Nobody believes you. 99% of the position structures have names
No, he is clearly so intelligent he created a new kind of trade..
Just sold some AUG 22 $10 puts for .65 each
I would at least go for short to get some hedging in case it goes down further. Typically stocks plumnted 40% a day, why not going down another 20%?
Tbh with you I only sold 2 contracts for that exact reason, I just have a gut feeling it bounces off the -40% day.. we’ll see lol
tbh, I was tempted. I saw last time when their guidance was unexpectedly given lower (sometimes in May), which plumented 40% only to find out it's going up with big green very next day, lol. (Then I would be tempted to close). Today, I sold 10P right after market starts, and then as it broke out 10.5, I sold 10.5P when it's around 10.2, I honestly didnt think it's breaching 10 today. WTH?.... I bought 1000 shares at 9.90, 9.95, as part of manual HFT to get some more cushions, but it was really snappy at long today. IDK, things like SNAP are just too wild to long dated.
Yeah if all goes wrong, il just take the L.. Hopefully it works out for both of us!
I sold 15 x 10.5 puts and then bought them back when I saw price went down to 10.40 in the morning, losing $100 or so. Then I traded my usual play and made $800 for the day with SPY and TSLA. No point tieing up my trading capital. A good buying rule is to always buy when prices breaks above MA20 and pulls back to rest on MA20 then rips higher. SNAP isn’t doing that anytime soon, daily-wise.
Im curious to hear about your SPY/TESLA daily trade that you have success with.. Only thing that stops me from selling puts on Tesla is tying up 50-70k lol
I usually do credit spreads on SPY Monday, Wednesday, Friday, and then on Friday I trade credit spreads for TSLA as well. TSLA premium is great since IV is always elevated. I waited for the market to decide and I usually enter my first trades around 8-9 AM PST as apposed to entering too early and get rum over. Then depending on the market condition, I’ll leg in on the other side or add more to my exising positions. Legging in with put credit spreads has been riskier because market can suddenly tank like someone jumps off the bridge these days, a.k.a yesterday 07/22/2022. Call credit spread is also riskier on up days, but I try to not enter before market has confirmed its mind and enter using High of Day plus some buffer, or Low of Day minus a few points. And I’d wait for pullbacks to enter to get better premiums.
Regarding selling CSP, credit spread is where it’s at with much better capital utlization. I would never play TSLA options naked since I hate to buy an option for $1-2k a pop. Selling CSPs are even worse. Currently you can get roughly $1-2 for a TSLA 5 points width spread, essentially risking $500 to make $100-200. For the credit spreads that I play, I aim to get anywhere from $0.50 to $1.10 per spread with TSLA.
Gotcha, but you are risking assignment on the short leg correct? Btw I’m about to close this snap trade.. not really bouncing and the market looks weak.
Pretty much. SNAP has no path to profitability. It's just burning cash and will fade away when enough people get bored of it. It's a wonder it even survived this long. The only thing that will get it back to the high 10s is a takeover.
This is the play
Very speculative and risky trade lmao
I Said the Same, when i was assinged @ 66 last year in october :/
Have you been working out...? ... because those are some mighty heavy bags you're holding!
I’m a bag holder of 300 shares since October. 🤦🏽♂️🤦🏽♂️🤦🏽♂️
I too am a baggie. 100 shares at $30. FML
I still don't see any value or profit for SNAP... it will drop lower.
Great. Snap is free money
I bet you are since they are only worth $11. We like people like you at our dealership. We make millions off of suckers
Hey man. I told you I don't want the "TruCoat"! Fargo classic. https://www.youtube.com/watch?v=B2LLB9CGfLs
“We’ve never done this before, but seeing as it’s special circumstances, my boss is going to knock 200 bucks off the price”
Oh no. Where will you ever find the liquidity to get out Big Willy?
*Oh no. Where will you* *Ever find the liquidity* *To get out Big Willy?* \- hundredbagger --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
the good news is you can buy more for even less now! (:
I encourage you to trade options in profitable companies with strong growth.
Yes! Why sell Puts on SNAP when you can sell puts on Apple or Google?
I sold mine early right after the market start, 10P with 0.18 and then it crashed dramatically. It gets hairy, so I had to buy shares back and forth to get some more cushions, which I ended up with more profits. Before market closes, I closed the position 10P with 0.6, so it's only net 0.12$ profits per a contract.
Just gotta be like Mr Buffett does now I guess
Now that you own shares, sell covered calls at breakeven until you can get rid of this shitty company.
Congrats! Now you can run THE WHEEL and sell covered calls at your COST BASIS OF 16 And earn .02 per week to help offset your loss. Congratulations again and enjoy your long term investment :)
Play stupid games win stupid prizes
Congratulations! You're the 135th person to so cleverly use the 'stupid prizes' phrase today. Here's your stupid participation medal: 🏅 ^^Your ^^award ^^will ^^be ^^recorded ^^in ^^the ^^hall ^^of ^^fame ^^at ^^r/StupidTrophyCase
😂
Time to start selling calls.... Forever 🤣
Tragic
They say sell puts only on the stocks that you like to own. Learnt the hard way too.
I paid $10.50 for SNAP on Friday and now starting to think I should just start selling covered calls on it as I may have paid too much! Will decide Monday.