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Let's Trade Options

  • #19,441
  • Mar 4, 2024 6:13pm Mar 4, 2024 6:13pm
Quoting The Fool
{quote} you're looking for a way to fade MSTR's crazy run, no?
I was, but it's too rich for my blood!

You can rest assured none of those options trades today were mine.....
  • #19,442
  • Mar 4, 2024 6:28pm Mar 4, 2024 6:28pm
I will, however. be looking at these in the morning. Don't know why, because PUTs haven't been doing what they need to do in a timely manner (so I may look at a longer expiration date):

MTZ Mar15 85 PUT

NTRA Mar15 90 PUT

PSTG Mar15 55 PUT
  • #19,443
  • Mar 4, 2024 6:34pm Mar 4, 2024 6:34pm
lot of put trades I see are selling puts and put spreads - bullish trades. Not too much call selling, I think. Although, I'm not always sure how to interpret the T&S trades.

Here's one for Friday....
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,444
  • Edited 7:11pm Mar 4, 2024 6:47pm | Edited 7:11pm
a more sensible trade in the list...somebody using $74k of margin to make $1,000.....sure....who does these?.....if your cost of trading is deeply discounted and you've got $millions in margin to play with, why not? ...pretty much free money...
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,445
  • Mar 4, 2024 6:53pm Mar 4, 2024 6:53pm
My goal is to start selling some uncovered PUTs this year. I can do covered calls, but I take money out of my account before I reach the threshold for selling naked Calls. I just don't want to keep that much money in a place I may not be able to get to...I remember 9/11 and didn't have access to my account for a week!
  • #19,446
  • Mar 4, 2024 7:07pm Mar 4, 2024 7:07pm
Quoting The Fool
How much of the stock price froth is directly related to their BTC holdings, with BTC exploding also in the last month?
MSTR is almost a proxy for BTC, it seems. Well, if DJT, on his way to the presumptive 2nd term, starts talking about regulating BTC, what will happen?

....idk, anyway, it's just too rich for me, too.....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,447
  • Mar 4, 2024 7:09pm Mar 4, 2024 7:09pm
Quoting moneymaker2
My goal is to start selling some uncovered PUTs this year. I can do covered calls, but I take money out of my account before I reach the threshold for selling naked Calls. I just don't want to keep that much money in a place I may not be able to get to...I remember 9/11 and didn't have access to my account for a week!
I very rarely sell naked options, just don't want to pony up the margin, but I'm always selling SPX and XSP vertical spreads. Selling SPX call verts has been rough lately. Selling puts in the big bull runs is the way to go...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,448
  • Mar 4, 2024 9:08pm Mar 4, 2024 9:08pm
Quoting The Fool
{quote}I very rarely sell naked options, just don't want to pony up the margin, but I'm always selling SPX and XSP vertical spreads. Selling SPX call verts has been rough lately. Selling puts in the big bull runs is the way to go...
I'm not sure how it is trading spreads, but I would imagine you are like me and have to keep a minimum $25K in your account as a pattern day trader. I take money out as to not go much over $50K, but they want ~$300K in my account to sell naked Calls, I guess because I have a history of trading so many contracts, maybe? But I'm not keeping that much in one trading account any more. I had close to 2/3 that on 9/11 and when I couldn't get to it for a week....well, as Negan said on The Walking Dead, I was ready to put my $hittin' pants on! Plus, I can now sell naked Puts with no additional capital, so I'm just gonna look at that now.

I updated my charting program last month, and with the same indicators, it still looks different with the indicator that I tweak, so I have to figure that out. Should be exactly the same, but it doesn't move like before (and I have the older version on a laptop for comparison), so I have to reinstall and check all my parameter things again this weekend before I venture adding the Puts. But that should be an additional source of income. I mean, If I am confident to but a Call, I should be confident enough to sell a Put on the same thing, right?
  • #19,449
  • Mar 4, 2024 9:35pm Mar 4, 2024 9:35pm
On my $200k Schwab play money account, here's what it takes to trade a 1-lot 2 delta Mar15 $4650 put: $54,529, for a $140 credit. Insane.
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If I want to grab $1.40 credit in a put spread @ Mar15, I could do 4950/4910 bull puts for $3,900 bpr. Much more efficient. Mar15 4950 puts @ 8 delta. I usually sell 25-50 wide verticals at 20 delta or lower.
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If you have portfolio margin, your bpr hits will be less. If you really want to sell options, I think futures index options is the most efficient of all.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,450
  • Mar 4, 2024 9:41pm Mar 4, 2024 9:41pm
Quoting The Fool
{quote} Selling puts in the big bull runs is the way to go...
...this is shaping up to be an epic bull year. I doubt we will see anything more bearish than a few little <5% pullbacks, if that. Selling put spreads to fund your bullish trades is a good plan until Sept-Oct, I'd say. We might see some good volatility at the end of the year, we'll see.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,451
  • Mar 5, 2024 8:38am Mar 5, 2024 8:38am
Quoting The Fool
{quote}...this is shaping up to be an epic bull year. I doubt we will see anything more bearish than a few little <5% pullbacks, if that. Selling put spreads to fund your bullish trades is a good plan until Sept-Oct, I'd say. We might see some good volatility at the end of the year, we'll see.
I think you're right.

But I'm still looking for short term moves, so I got into the following:

MTZ Mar15 85 PUT at $1.50

I had an order in for $1.35 but it never got hit.
  • #19,452
  • Mar 5, 2024 8:56am Mar 5, 2024 8:56am
Quoting moneymaker2
{quote} . But I'm still looking for short term moves, so .
I thought we'd have a chance at a pullback this week. Bostic got it started yesterday talkin bout one & done for 2024. JPow can keep it going, but I doubt it. Then we could pop down on a big outlier, either way, @ the NFP. Reality vs. Goldilocks. We'll see who wins this round.

BTFD always waiting to rush in though....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,453
  • Mar 5, 2024 11:24am Mar 5, 2024 11:24am
Off the weekly chart, in the following:

WM Mar15 205 PUT at $1.30
  • #19,454
  • Mar 5, 2024 12:50pm Mar 5, 2024 12:50pm
Quoting The Fool
trying this XSP weekly combo again. These will make money if the market moves on the week. Even a 20-lot comes in <$200 each side, with no tail risk.
rolled down the call spread to 517/518, for an additional 2c debit.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,455
  • Edited Mar 6, 2024 11:49am Mar 5, 2024 11:55pm | Edited Mar 6, 2024 11:49am
Told myself not to bet against the Russell, but if we get another hot CPI 3/12 (beware the Ides of March).....he could easily be trading 100-200 pts lower. Cheap calendar risks $30 to make $1,200.

@ the Feb CPI, RUT dropped 100 pts.
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,456
  • Mar 6, 2024 8:49am Mar 6, 2024 8:49am
Quoting moneymaker2
{quote} I think you're right. But I'm still looking for short term moves, so I got into the following: MTZ Mar15 85 PUT at $1.50 I had an order in for $1.35 but it never got hit.
Added to the following:

MTZ Mar15 85 PUT at $0.70, lowering the average to $0.97
  • #19,457
  • Mar 8, 2024 8:08am Mar 8, 2024 8:08am
Out of the following:

ROKU Mar8 70 CALL at $0.02 down from $1.235 average

That sucked!

My Puts have been kicking my butt this month (and Feb). I've still got to check my indicator coding, but I'm thinking its just a wild bull ride lately.
  • #19,458
  • Mar 8, 2024 11:33am Mar 8, 2024 11:33am
Quoting moneymaker2
its just a wild bull ride lately.
about the time you decide to stop fighting it, it'll turn....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,459
  • Mar 8, 2024 12:46pm Mar 8, 2024 12:46pm
I don't love XSP, but the spreads are very cheap, making them useful for hedging. Putting these on @ $0.04 each to catch a pop on the CPI and help protect SPX bear calls I have at that level.....
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"If The Fool persists in his Folly he will become wise." - William Blake
  • #19,460
  • Mar 11, 2024 1:22am Mar 11, 2024 1:22am
CPI to move the RUT. I've not thought of a name for this trade form yet. The P/L will not look like that as it gets into the later hours of the short strike day. Not uncommon for the models to confuse you. I'm shooting for the theoretical maximum, the cyan line....
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"If The Fool persists in his Folly he will become wise." - William Blake
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