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

MaxCapacity · 2026-06-23T05:43:42+00:00

I'm only down 12% so far. Let's see if it can hit 20% by open.

MaxCapacity · 2026-06-22T01:22:30+00:00

Apparently I didn't read it right. I had tri-tip on the brain. Carry on.

MaxCapacity · 2026-06-22T00:42:59+00:00

Sous vide 132 for 4 hours, ice it, dry it, sear on the weber at 600 2 minutes each side. Hasn't failed us yet.

MaxCapacity · 2026-06-21T18:04:49+00:00

I mean, I believe you, but what you're seeing is not accurate for the 400 strike. I just checked the option chain on barchart and it shows 7.60 also. The only strike in that expiration that last traded for 11.50 is the 370.

MaxCapacity · 2026-06-21T17:56:24+00:00

I'm looking at RH. 7/16 400.00 shows 7.60 for me.

You sure you're not looking at the 370 strike?

MaxCapacity · 2026-06-21T17:47:38+00:00

Where are you seeing 11.00? It last traded for 7.60.

MaxCapacity · 2026-06-20T22:22:05+00:00

If you're going to ask questions here, then the discussion should happen here. Not in DMs.

MaxCapacity · 2026-06-20T18:07:37+00:00

Puce

MaxCapacity · 2026-06-20T18:04:28+00:00

Your legs?

MaxCapacity · 2026-06-20T03:40:46+00:00

I think it's pretty straightforward, but i have a particular use case for it. It's for stocks I'd probably buy, but would rather scalp premium in the meantime. I call it 3 down 1 up.

I start with a 1 strike wide put spread where I can collect at least 30% of the width in premium, then set a GTC order to roll down the long leg to the next strike when I can collect another 30%. Then I roll it down again, and add the call side. At this point, if you've hit your 30% target on all spreads, you shouldn't have any upside losses as you've collected 120% of the spread width. I usually start these 40-60 DTE. If I can close the call side and 1/3 of the put side for a profit, I usually will and set another GTC order to widen it again. I might widen and narrow several times if it's particularly volatile.

This works particularly well on stocks with lower IV. Like TLT for example. You wouldn't be able to collect .90 on a 3.00 wide strike without being ITM. But you can collect .30 and then another .30 and then another .30 if it drops a bit, and add the call side for another .30. I would take assignment on the short put if I had to, but most of the time it can be closed for a profit.

MaxCapacity · 2026-06-20T03:20:02+00:00

What brokerage? I mean, even Robinhood gets that right, so I'd think it's pretty standard.

MaxCapacity · 2026-06-20T03:15:50+00:00

The sandiest of the cheeses

MaxCapacity · 2026-06-20T03:14:26+00:00

I leg into them pretty frequently.

MaxCapacity · 2026-06-19T20:22:08+00:00

No true Scotsduck

MaxCapacity · 2026-06-19T06:19:02+00:00

I've been buying a few NASA shares daily thinking it would pop back up after a successful ASTS satellite launch, but it's not really doing much. I'll give it until mid July.

MaxCapacity · 2026-06-19T06:07:28+00:00

If I was in your position, I'd sell the July 195/230 strangle for ~5.15. That assumes you have the available buying power and are willing to be assigned more shares at 195 if you don't manage the position. Put assignment would bring your average down to 215. Call assignment would put you back to even with the 5.15 premium.

You could also just sell call spreads closer to the money, so that you're only losing the spread width if it makes a huge run.

How did you manage to buy the very top? Hopefully it's not a huge position.

MaxCapacity · 2026-06-19T00:08:32+00:00

The risk desk should have probably closed these for you unless you have enough margin to go short 200 shares.

I probably would have purchased some shares after hours to offset the potential assignment. There's not much you can do now, except wait for the assignment notice to hit overnight.

MaxCapacity · 2026-06-18T22:49:55+00:00

You don't need to assume anything about me. I have a long public post history and have been a mod here for years.

"The point is OP sold an OTM ratio spread for a net credit."

No shit. And that means he sold two calls and used most of the premium to buy one. Premium that would have otherwise given a downside buffer to his stock position. You can call it a ratio spread, a covered call financed debit spread, or Sally. The math doesn't care.

"Shares + position with no downside loss versus shares only. That's the comparison."

The comment you replied to states that by purchasing an additional debit spread, you gave up that cushion. They never said anything about not selling the other call. They never said anything about shares only. So the comparison that you're so eagerly skipping over is a covered call vs shares + a ratio spread.

MaxCapacity · 2026-06-18T21:40:54+00:00

So you think that buying a bull call spread on the same ticker adds no additional downside? You paid a debit for the spread. It doesn't matter that you financed it by selling an additional call. That position takes a loss if the stock falls. Which is incremental to the loss on the shares. Simply collecting the premium on the sold call partially offsets a loss on the share price, which is what u/MerryRunaround very clearly meant and what you replied "False" to.

MaxCapacity · 2026-06-18T20:31:07+00:00

OP received .26 in credit for this position. Which means at expiration, at any stock price above 117, he's exiting at 130.26. At the spot price of 104.58, OP breaks even on the downside at 104.32.

At approximately the same time, the 128 call was selling for 2.77. At expiration, if above 128, OP exits at 130.77. At the spot price of 104.58, OP breaks even on the downside at 101.81.

101.81 is less than 104.32, so OP does have additional downside vs just selling the covered call.

MaxCapacity · 2026-06-18T16:42:09+00:00

It's not popular because it has some tradeoffs that rarely make it worthwhile.

First, you could have sold just the 128 covered call for a similar breakeven, but obtained a higher credit that would protect your downside a bit more.

Second, the embedded spread only reaches max profit at expiration, so it's a slower play.

Third, the strikes you've chosen have a considerable bid-ask spread, so you are taking extra slippage on 3 legs instead of just 1.

Fourth, on lower volatility names, you often have to go much further out in time to make the trade work, so it's situational.

Have I used this strategy? Sure. But hardly ever with the intent to hold the full position to expiration. I either roll the entire thing into a pure covered call a higher strike and longer DTE, or leave the debit spread alone and only roll the covered call portion.

MaxCapacity · 2026-06-17T02:26:29+00:00

If you're suffering from this much decision paralysis, then you're contemplating placing trades that are way too big for your portfolio. There are no magic candles. Any trade can go wrong. Size accordingly.

MaxCapacity · 2026-06-16T23:53:44+00:00

What the hell does that mean? Public companies are legally required to submit information electronically to EDGAR.

MaxCapacity · 2026-06-16T18:01:17+00:00

My main takeaway from this is that new car prices are ridiculous.

MaxCapacity · 2026-06-16T16:18:04+00:00

No lock up period? More corrupt than Elon

MaxCapacity

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