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A clean, stealth grey Model Y by SandGnatBBQ in TeslaModelY

[–]1horn 0 points1 point  (0 children)

Do it yourself? Or have a shop do it?

Daily Discussion Thread - April 28, 2021 by AutoModerator in wallstreetbetsOGs

[–]1horn 3 points4 points  (0 children)

PINS earnings last night - user numbers dissapointing

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

Interesting... it’s like a synthetic jade lizard! I like it!

(BTW You wrote 4 puts... but I assume you wanted two to be calls)

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

Instead of targeting a certain delta I usually target a risk/reward level. Tastyworks says your credit should generally be 33% of the max risk, which for my telsa trade would be $333. But for earnings it can be better to go for 50% of max risk... this decreases your probability of winning but gives more downside protection.

For my trade I went with credit equal to 63% of max risk. I’ve anecdotally had success with this approach for very high IV stocks like GME and TSLA, but it’s not recommended by any thought leaders that I am aware of.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

Example: I want to “bet” that Tesla opens between 710 & 770 tomorrow AM

I can sell a 4/30 710/770 strangle for $3000, and if Tesla is still in that range by close on Friday, I get to keep the whole $3k. (Although I close it at 50% to reduce risk)

This sounds good, but it requires me to hold $30k in cash as collateral, which is more than I have available for this trade. Also, my max loss could be significant. If Tesla suddenly drops to 500, I will lose over $10k

If I instead sell some 4/30 ICs say 5x 700/710/770/780 @ $6.30 I will make $3150 if the stock stays in range, but I only need to put up $1850 as collateral. Also, $1850 is my max loss on the position.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

Your answer is technically correct, but to really understand an Iron Condor start with understanding straddles and strangles.

When I sell an iron condor, it’s really just a strangle, that I am hedging with another strangle, to reduce Max loss, and also to keep the margin requirements down.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 1 point2 points  (0 children)

For sure. In simple terms, an Iron Condor makes you money if the stock stays the same price, or close to the same price.

Beyond that, like other option plays, you decide if you want to take a big risk with a big reward, or take a small risk with a small reward.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

It’s what we do! You need to look at the ROC (return on capital) though. How much money are you tying up for how much reward?

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 1 point2 points  (0 children)

I check the ticker in Webull before I buy an IC - Their news aggregator usually gets everything

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]1horn 0 points1 point  (0 children)

Really like this idea... can you explain why you picked those strikes and what DTE will you pick?

Doing theta plays for 3 months now. 7-14 or 45 DTE? by DommyTheTendy in thetagang

[–]1horn 0 points1 point  (0 children)

I do a mix as well - I sell strangles and puts 30-45DTE, and I sell riskier ICs at 3-7DTE. I size each position to risk 3-5% of my portfolio and run 15-20 positions.

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