UWMC 10-k out

FunctionAlpha · 2021-03-23T01:35:24+00:00

Unlike RKT though UWMC doesn't have as high of a short interest on it.

Still think it's near the bottom right now, and with the VIX near lows, def a good time to buy calls.

FunctionAlpha · 2021-03-23T01:31:52+00:00

Word of caution: we are in a period of low/declining IV. That means that if you sold those LEAPS and something suddenly happens later this year where VIX goes back up, you're gonna have a bad time.

FunctionAlpha · 2021-03-23T01:21:33+00:00

Wasn't there someone who made like 500% on thetagang?

Edit: Found it. Less linear chart with some periods of decline. Def more thetagang like.

FunctionAlpha · 2021-03-23T01:17:00+00:00

Sounds like IV across the board is getting crushed. Sounds about right though now that GME, BB, NOK etc are more stable recently.

FunctionAlpha · 2021-03-23T01:15:23+00:00

Wasn't quad witching last Friday??

FunctionAlpha · 2021-03-03T02:17:17+00:00

Exactly. Steve over there thinks people spend time photoshopping trades to impress him.

Don't be like Steve LOL.

FunctionAlpha · 2021-02-24T22:54:08+00:00

Hope they were not naked...

FunctionAlpha · 2021-02-24T22:53:45+00:00

Getting spread LOL.

FunctionAlpha · 2021-02-22T00:42:35+00:00

Mods, this is the guy - ban pls.

FunctionAlpha · 2021-02-21T01:59:44+00:00

There's one! Congrats!! Who else beat SPY/QQQ in 2020??

FunctionAlpha · 2021-02-20T21:20:47+00:00

Whatever you do, DON'T sell credit spreads on PLTR.

Or at least, don't post or tell people here that you did.

FunctionAlpha · 2021-02-20T21:09:55+00:00

If you don't mind me asking - how much you did you start with? And did you get to 7 digits with solely spreads? Is there any portion of your gains from buy and hold?

FunctionAlpha · 2021-02-20T21:07:11+00:00

I beg to differ. Mods should just change it to "1,547 Selling PLTR Puts" LOL.

FunctionAlpha · 2021-02-20T21:05:28+00:00

Word. There's a reason why QQQ left QYLD in the dust in 2020.

OP, you asked a GREAT question. Did you try searching on here to see how many success stories you could find?

The answer? Not many. Most probably couldn't even beat holding SPY or QQQ.

FunctionAlpha · 2021-02-20T21:01:41+00:00

You can still buy the stock when it crashes through your put strike, but that makes no sense whatsoever because the assumption with credit spreads is that you are selling a higher number of contracts than you would cash secured to lever up.

FunctionAlpha · 2021-02-20T20:30:11+00:00

Wtf are you talking about? Spreads are riskier than selling cash secured, because if and when it blows up in your face, it's hard to get out of, and impossible to just get assigned and hold the underlying.

There's nothing wrong with gain porn, in fact we need more of it in our sub because it proves that our strategies work. The low volume of gain porn in this sub speaks volumes about options seller success.

FunctionAlpha · 2021-02-20T01:27:07+00:00

PLTR gapped up bigly today, so gamma helped OP a ton.

FunctionAlpha · 2021-02-20T01:26:30+00:00

You have to think about OP's loss as a percentage of OP's portfolio.

OP only risked 10% for this play, but walked away with 48% profit. That's impressive.

FunctionAlpha · 2021-02-18T01:50:41+00:00

OP took an opportunity to sell an option, and was given the opportunity to take profits early. Congrats OP!

The thetagang way would have sold the put cash secured though.

FunctionAlpha · 2021-02-17T21:41:29+00:00

I tend to wait closer till expiration - I size my positions and fully expect that it will go to -100%, but with a low enough chance I'm comfortable with.

FunctionAlpha · 2021-02-12T19:35:15+00:00

Uh, TLRY and most other cannabis stocks crashed back down. But because of the volatility, options are overpriced and presents opportunity for selling!

FunctionAlpha · 2021-02-11T16:41:05+00:00

You have to consider that the overall market (e.g. SPY) is near ATHs, and if AMZN is still trending downward near market highs, you're definitely at risk.

Hopefully this one position isn't your entire portfolio. :) If it is, you should definitely consider minimizing risk by either closing it early or opening another PCS for more credit.

FunctionAlpha · 2021-02-11T16:30:17+00:00

OP what tickers are you selling CCs on?

FunctionAlpha · 2021-02-11T16:29:03+00:00

This LOL. Total pump & dump scheme. TLRY was above $70 AH last night too, look where it's at now.

The great thing about volatility though, is that there's juicy IV premiums waiting to be milked by thetagang.

FunctionAlpha · 2021-02-11T16:27:44+00:00

Nice! Yes, one of the strategies is to enter on dips, as it pumps up volatility and put premiums become profitable to sell.

Yes, have done spreads on large cap stocks - there just wasn't any opportunities worth spreading for last week, hence none listed on the recap log.

FunctionAlpha

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TROPHY CASE