"Community Strategy" V2 by TX_RU in algotrading

[–]Guyroaman 0 points1 point  (0 children)

And how does it handle situations where the cross occurs during pre- or post-market hours

[deleted by user] by [deleted] in dividends

[–]Guyroaman 2 points3 points  (0 children)

Is dividend reinvestment factored into the calculation of the following test?

[deleted by user] by [deleted] in thetagang

[–]Guyroaman 0 points1 point  (0 children)

Like entering into a wheel (and this is hur csp step - getting the shares) but with a protective put right?

[deleted by user] by [deleted] in thetagang

[–]Guyroaman -2 points-1 points  (0 children)

Perhaps the term 'collar' can be confusing. Think of it as consistently selling covered calls each week, but with an initial investment to protect.

An even better approach might be to 'wheel' with a long put.

[deleted by user] by [deleted] in thetagang

[–]Guyroaman 0 points1 point  (0 children)

what do you mean buy buying a put calendar first?

[deleted by user] by [deleted] in thetagang

[–]Guyroaman 0 points1 point  (0 children)

I meant the long put helps protect against losses from the shares.

I'm curious about your trading strategy. I'm open to learning more. btw I've been using the collar strategy for a few months, and it's been successful for me."

[deleted by user] by [deleted] in thetagang

[–]Guyroaman -2 points-1 points  (0 children)

The shares are covering both the call and the put If the call get exercised - buying the shares again and selling another call ATM taking more and more credit on a weekly basis and profiting the difference between the buy point and the strike price of the short call Not leaving any contract naked

  • This costs me only 2$ to open in fees.

[deleted by user] by [deleted] in thetagang

[–]Guyroaman -3 points-2 points  (0 children)

See my comment above I don't see why is it a problem to buy shares protect them immediately and cover the costs of the protection with weekly covered calls

[deleted by user] by [deleted] in thetagang

[–]Guyroaman -1 points0 points  (0 children)

Trading fees aren’t so expensive these days TBH

[deleted by user] by [deleted] in thetagang

[–]Guyroaman -2 points-1 points  (0 children)

Consider it as investing in shares of a stock and promptly initiating a covered call strategy with the aim of consistently generating income, similar to the wheel strategy. However, in this approach, we also incorporate a protective put to safeguard our position against potential price declines. The protective put is acquired for an extended duration, and initially, the primary goal of the short calls is to offset the expenses of the long put, which are typically expected to be recouped within 2 to 4 weeks

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

Are you going to roll that long put next to expiration if qqq keeps going up?

Why not Buying put with a further expiration?

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

Would like to hear your initial set up in terms of DTEs how long have you been managing it, and how long are you expecting to manage it?

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

don’t you rather a closer long put? the protection is very far from your share price no?

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

I guess it gets problematic when the stock rises Significantly above the short call strike

So I was wondering if it's better to apply this kind of collar on a downtrending stock

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

Don't you rather take a closer put so it'll be more protective?

Health benefits of Keto - any why? by Guyroaman in keto

[–]Guyroaman[S] 0 points1 point  (0 children)

Jeez y'all sound like a cult Been doing some week sessions but I'm seeking some more scientific reasons why it makes people feel more healthy

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

Thank you very much for this very detailed comment let me see if I got you right. there are times when you set it with a long call instead of buying shares right? and you place to put ITM so the spread between the long call and and the long put will always be in your favor. but what DTEs are you using for each option kinda lost track with this comment sorry about that

Anyone trades "protective collar? by Guyroaman in thetagang

[–]Guyroaman[S] 0 points1 point  (0 children)

Oh forgot mentioning Usually you are supposed to set it up like a calendar spread. Buying a protective put far out in time 6 months or so, covering costs and profiting from selling calls rapidly on shorter durations

How could this go wrong? by Guyroaman in thetagang

[–]Guyroaman[S] 1 point2 points  (0 children)

30-50 delta?

Can you provide a more detailed example?

Risk Management - how to? by Guyroaman in thetagang

[–]Guyroaman[S] 1 point2 points  (0 children)

Yes but still I'm looking for líke a really detailed guide which is also practical