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Let's Trade Options

  • #14,641
  • Feb 3, 2017 8:47pm Feb 3, 2017 8:47pm
ITM calls tend to get assigned the day prior to ex-dividend, such as MCD, PEP and PFE. In many cases the stock moved above my call strikes just 1 or 2 days prior to ex-dividend and the next morning I woke up with an account I couldn't recognize. I seldom short DITM puts so I can't say how often put to stock happens. I used to sell naked puts just to own the stock cheaper via assignment, and then sell calls or call spreads upon assigment. But the premiums these days are unlike those in the past circa 2010 so I stopped that practice.
  • #14,642
  • Feb 3, 2017 8:48pm Feb 3, 2017 8:48pm
I made it with Jing....idk wtf is NFSW, keep in mind I'm old...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,643
  • Feb 3, 2017 8:50pm Feb 3, 2017 8:50pm
Quoting The Fool
Most of the assignments I have been in have been on things that went pretty far itm in relatively illiquid names. The worst thing that can happen to your calendar or diagonal is a strong, early move towards or beyond your short strike. Often I will put those strikes at big round numbers or at areas of strong S/R, because I want them to be held there over time. In a minute after I finish this old fashioned I might make a vid of the time progression thru the diag and bull vert in that GS trade. I have high hopes for it....

True that, Ive honestly never been assigned unless I requested it or just held a BFF trade to expiration and took the assignment because my short units were ITM

Mathematically speaking it almost always makes more sense to do spreads rather than write options. Ill only write naked options if IV is astronomically high and I'm expecting a drop.
  • #14,644
  • Feb 3, 2017 8:51pm Feb 3, 2017 8:51pm
Quoting SnoopyAKQJT
ITM calls tend to get assigned the day prior to ex-dividend, such as MCD, PEP and PFE. In many cases the stock moved above my call strikes just 1 or 2 days prior to ex-dividend and the next morning I woke up with an account I couldn't recognize. I seldom short DITM puts so I can't say how often put to stock happens. I used to sell naked puts just to own the stock cheaper via assignment, and then sell calls or call spreads upon assigment. But the premiums these days are unlike those in the past circa 2010 so I stopped that practice.
yeah maybe we will live to see good vol times again. I have not been assigned much, and when it has happened it didn't really hurt me because I am almost always in balanced spreads, but it's an annoyance. Worst has been on adjusted options in perennial dogturd UVXY....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,645
  • Feb 3, 2017 8:52pm Feb 3, 2017 8:52pm
Quoting The Fool
I made it with Jing....idk wtf is NFSW, keep in mind I'm old...
http://bfy.tw/531

Ur still under 60 brother, youre a spring chicken in my book.
  • #14,646
  • Feb 3, 2017 8:54pm Feb 3, 2017 8:54pm
Quoting Wulfgar
Ill only write naked options if IV is astronomically high and I'm expecting a drop.
yeah those are fun & pretty common at earnings time...I kind of have got away from that now because pretty much all I can handle is just keeping a feel for the broad markets & I just don't have much time to research a lot of individual names....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,647
  • Feb 3, 2017 8:57pm Feb 3, 2017 8:57pm
Quoting Wulfgar
{quote} http://bfy.tw/531 Ur still under 60 brother, youre a spring chicken in my book.
yeah ok....I am surrounded by cubs at my work and my "boss" is 38....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,648
  • Feb 3, 2017 9:00pm Feb 3, 2017 9:00pm
Quoting The Fool
{quote} yeah ok....I am surrounded by cubs at my work and my "boss" is 38....

Jesus Christ....


Dude, honestly my trading system is so fuggin boring I don't even like sharing trades because its the most monotonous, simple, stupid thing ever.

I wanna short FSLR next week for 2 reasons. 1) I hate when I get 14 solar calls a week on the home line I never use, and 2) There is a good level right above current price with some more room to drop. and 3) Solar companies have never made any money.
  • #14,649
  • Feb 3, 2017 9:04pm Feb 3, 2017 9:04pm
well that's an interesting situation with the solar industry on many fronts....I have been a solar designer at various times and have some friends who have gone far in the biz....like 9 figures far....28c/kwh in HI would explain the marketing, though, I guess....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,650
  • Feb 3, 2017 9:06pm Feb 3, 2017 9:06pm
Quoting Wulfgar
.. Dude, honestly my trading system is so fuggin boring I don't even like sharing trades because its the most monotonous, simple, stupid thing ever.
lol...intriguing....how many box tops do I have to send?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,651
  • Feb 3, 2017 9:09pm Feb 3, 2017 9:09pm
Quoting The Fool
well that's an interesting situation with the solar industry on many fronts....I have been a solar designer at various times and have some friends who have gone far in the biz....like 9 figures far....28c/kwh in HI would explain the marketing, though, I guess....

Full disclosure, I actually have solar(PV).... and wind... and nat gas.... and I collect my own water..... so ya


9 figures??? wtf are we doin wrong?
  • #14,652
  • Feb 3, 2017 9:12pm Feb 3, 2017 9:12pm
Quoting The Fool
{quote}lol...intriguing....how many box tops do I have to send?
haha I used to do those for fund raisers as a kid for pop warner football.

honeslty its the same old same old

1. Look for a price level that price rocketed away from on any and all liquid instruments

2. look at volatility when price hits the level and choose strategy accordingly

3. Make sure there is decent R:R

4. Set trade, drink beer, surf
  • #14,653
  • Feb 3, 2017 9:14pm Feb 3, 2017 9:14pm
Quoting Wulfgar
I actually have solar(PV).... and wind... and nat gas.... and I collect my own water..... so ya 9 figures??? wtf are we doin wrong?
....nice...Zep founder I knew, total hippie from hippie days at Humboldt, sold it for $158MM...simple idea, right place/right time, luck...fml idk...

http://www.zepsolar.com/
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,654
  • Feb 3, 2017 9:16pm Feb 3, 2017 9:16pm
Quoting Wulfgar
1. Look for a price level that price rocketed away from on any and all liquid instruments 2. look at volatility when price hits the level and choose strategy accordingly 3. Make sure there is decent R:R 4. Set trade, drink beer, surf
ok, bro....show us some samples down the road....I pretty much got the beer drankin down already, so hey...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,655
  • Feb 4, 2017 1:47pm Feb 4, 2017 1:47pm
Quoting Wulfgar
1. Look for a price level that price rocketed away from on any and all liquid instruments 2. look at volatility when price hits the level and choose strategy accordingly
OK....what levels are you looking at? A lot of this equity stuff now at ath just looking at blue sky...no levels up there. We need PTL, he's a levels guy...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,656
  • Feb 4, 2017 5:20pm Feb 4, 2017 5:20pm
Quoting The Fool
{quote}OK....what levels are you looking at? A lot of this equity stuff now at ath just looking at blue sky...no levels up there. We need PTL, he's a levels guy...


When things are at ath's I just keep putting on breakout positions. I think that's something most newbs wont do because they are scared. While I'm for sure still scared when I do it, it works more often than not. You know?
  • #14,657
  • Feb 4, 2017 7:31pm Feb 4, 2017 7:31pm
Quoting Wulfgar
When things are at ath's I just keep putting on breakout positions. I think that's something most newbs wont do because they are scared. While I'm for sure still scared when I do it, it works more often than not. You know?
true, pay the limit
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,658
  • Feb 4, 2017 9:08pm Feb 4, 2017 9:08pm
Quoting The Fool
true, pay the limit
ptl, true, but some moves were made to fade (I usually resist the urge to trade junk tho....)
Attached Image (click to enlarge)
Click to Enlarge Name: 2017-02-04_1858mdco.png Size: 91 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,659
  • Feb 4, 2017 11:32pm Feb 4, 2017 11:32pm
long vol.....meh....hard to get worked up anymore. However, the Ides of March may be something, Mar opex 3/17, FOMC and Dutch elections 3/15....I will shop time spreads to get long legs into the following week.....
Attached Image (click to enlarge)
Click to Enlarge Name: 2017-02-04_2126uvxy.png Size: 70 KB
"If The Fool persists in his Folly he will become wise." - William Blake
  • #14,660
  • Feb 5, 2017 12:24am Feb 5, 2017 12:24am
Quoting The Fool
{quote}ptl, true, but some moves were made to fade (I usually resist the urge to trade junk tho....) {image}

Ya see that thing has never been that high so Id just keep piling on long until it craps on me. Ive just seen stocks and other things rise astronomically too many times and just sat there with my dick in my hand wishing I was in the run.
I guess the key is I always trade super small and then pile on position after position once the move really keeps going.


Those UVXY plays can work out really well if any of the many many black swans decide to take big steamy deuce on us.

I kinda like RIG from just below 13 up to 15.25 with about a .35 stop. vol I so low on all these things that options are cheap so ill just play either a directional calender, or a bull call spread if I can get a fill down there this week
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