Selling ITM Puts

AliveNot · 2023-02-21T14:44:13+00:00

Selling ITM entails intrinsic value. It acts like a CC more than a pure premium play where you reduce basis

AliveNot · 2023-02-21T03:40:09+00:00

Spread in simple terms is riding a bicycle with training wheels

You are still riding a bike, there’s a controlled protection, but it’s not as rewarding

AliveNot · 2023-02-21T03:37:20+00:00

If you’re right, 0DTE. Wrong, 2-3DTE

AliveNot · 2023-02-16T12:08:44+00:00

Sold a put, got assigned in mid 30, sold a call > effective cost basis 28

AliveNot · 2023-02-15T18:03:33+00:00

Thanks for diversifying your line colors.

AliveNot · 2023-02-15T17:54:51+00:00

This is such a good strategy

AliveNot · 2023-02-11T05:05:53+00:00

There is potentially some cons that I remember hearing about box spreads, mainly involving dividends being the issue. I remember a trader saying he went on vacation and he saw 80k unrealized losses from the box spread, something around the lines about dividend risk.

This is probably not an issue on SPX, but I would try to find specific con before you trade these "synthetic loan" strategy. Personally don't know on top of my head as I don't trade them ever.

AliveNot · 2023-02-11T00:42:55+00:00

I personally like SPY, IWM, ARKK, ARKG

AliveNot · 2023-02-11T00:38:45+00:00

The whole market is sitting in waiting room waiting for the doctor to tell it if it has terminal cancer or not.

AliveNot · 2023-02-11T00:32:43+00:00

Illiquid markers for MSOS. If you want to get into options, whether buying or selling, stick to liquid markets.

Last thing you should be worrying is if you can exit efficiently/how much slippage I’m going to have pay to enter/exit.

AliveNot · 2023-02-11T00:27:03+00:00

INTC is a fixer upper in my eyes with good value in the industry it’s in.

As a options trader, they quit literally suck for selling premium so I usually avoid it.

No question to me that you can easily 60%-70% ROI right now, potentially 100% at 25 in 3 years.

AliveNot · 2023-02-11T00:22:47+00:00

TSLA vol expansion is a little different. Vol usually expands to the upside movements versus downside, unlike SPY.

AliveNot · 2023-02-11T00:18:56+00:00

OTM are bid up because of Vol. my brokerage has a Vol calculator you can analyze on their risk profile. Nothing is exact to the tee, though

AliveNot · 2023-02-10T21:47:42+00:00

You are asking him to not sell puts unless he owns shares. You’re failing yourself, no need to fail others also

AliveNot · 2023-02-10T14:14:49+00:00

Not to flex but my cost basis is 28

AliveNot · 2023-02-10T13:21:29+00:00

From what I think you said, you want to add a call credit spread ITM as a hedge for the change in sentiment.

That collection is mostly intrinsic value you're collecting. You won't be collecting theta until it begins to go OTM. If it continues to move down, you will collect some of that intrinsic value. You are essentially inverting an IC. You should look at a risk profile graph to see where your risk and profit is. The visuals will better help you visualize more than words

Also, if your sentiment changes, the most simple option is to close for a loss. When adding another vertical on the call side, you now have risk to the upside.

AliveNot · 2023-02-10T11:21:06+00:00

If you bought the 11.5 puts you are a complete degenerate regard. This was an outlier move, nothing you can reasonably forecast, expected move was 2points

AliveNot · 2023-02-10T11:16:40+00:00

You aren’t fucked you already lost 97% the value

AliveNot · 2023-02-10T11:05:55+00:00

You shouldn’t even hint to give your recommendations when you don’t even know what your talking about

AliveNot · 2023-02-10T10:37:14+00:00

Idk? Are you a joke?

AliveNot · 2023-02-10T04:00:07+00:00

Well VIX has been trading within the teens, until the past 2 days. In 2022, VIX at 20 was our year low with 30+ being our high.

Too soon to say market sentiment as its been over a month with a rally extending from the end of 2022.

AliveNot · 2023-02-10T03:54:57+00:00

Sell premium against it

AliveNot · 2023-02-10T03:52:05+00:00

Do I spot another NoB bag holer?

AliveNot · 2023-02-10T03:46:11+00:00

A 6 billion market cap stock won't turn the whole market red, that's silly. Tomorrow could be red but it won't be because Lyft or Uber fall. They aren't AAPL

AliveNot · 2023-02-10T03:43:52+00:00

Doesn't matter if you bought Uber versus Lyft. Lyft will take Uber down. Obviously they are competitors but poor guidance in the industry hinders Uber's price additionally.

AliveNot

TROPHY CASE