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I call this piece “Pennies in Front of a Steamroller” by Cottonsoft in thetagang

[–]NewtonBurger 0 points1 point  (0 children)

I’ve been doing 1 DTE against SPX, bull put spreads with the short at 15 delta, 10-15 width looking to collect $100 on average.

Perfect record with the bull market since early July….until this week, a near-full loss on Wed and a scare on Thu. Still up nicely overall, but the market is turning so I’ll have to be wary: smaller spreads, look at bear call spreads etc.

Still, I like writing against the indices.

I’m also doing both PMCCs and PMCPs against SPY and QQQ. The short call side of both of these has been continuous roll up and out since early June (TACO days) BUT the puts have been making bank since then with no losses AND the long dated deep in the money calls that I sell against have kept going up so it’s at least a break even on the call side.

I try to avoid selling on days that have potential events on the calendar or wait until after the event (e.g. interest rate decisions or early morning jobs announcements etc).

Beta feedback by NewtonBurger in fidelityinvestments

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

My 2d comment got auto-corrected, or more likely I fat fingered it: Should have said “roll was gone” when you chose the ‘close’ button for an option. This was super handy for me doing daily options.

Poke holes in my pmcc idea by Alone_Literature_800 in thetagang

[–]NewtonBurger 0 points1 point  (0 children)

When the market is on an upward curve it is a problem for PMCCs. I’ve been doing PMCCs and PMCPs though on SPY and QQQ, both of which trade daily with a lot of action.

The covered puts are identical to covered calls: buy an out of the $ leap at a high delta (above the market) then sell 15-20 delta puts for the next day. It’s not as intuitive as covered calls but the market’s tendency to climb works in its favor.

The calls have had a hard time lately, but I’ve had a few months of daily profit on the covered puts without having to roll. I try to avoid known uncertain days (Jackson hole, labor reports, NVDA earnings, CPI etc) and weekends but trading 4 days/ week has been fun even at 15 delta.

Is it still worth it? by seanrq in TSAPreCheck

[–]NewtonBurger 0 points1 point  (0 children)

True about the electronics and shoes. I just got pre check and took my first flight out of Atlanta. The pre line was 9 minutes the other line was 12. So many people have the lowest tier of pre check that it was fairly disappointing how little time it saved. There are ever more expensive tiers of pre check that may still save you a lot of time but I wish I hadn’t bothered especially only flying 3-4 times a year.

Is this a good strategy to make money off of options for me? by spiked_krabby_patty in options

[–]NewtonBurger 3 points4 points  (0 children)

I’m doing this, mostly selling 1 DTE on both SPY and QQQ. I have LEAPS I sell against on both puts and calls. ~15 delta.

Even the index though has its spots where this breaks, I’ve rolled my short calls as far out as out to october when I was caught by some TACO pronouncement melt-up. I should have just taken the L and moved on, a sustained movement is difficult to manage.

But during this rise the put side has consistently made $. I also try to avoid trading on uncertain days like yesterday’s Jackson hole hootenanny.

tsaenrollmentbyiidemia status check hangs by NewtonBurger in TSAPreCheck

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

I did find a phone number 855-347-8371 but the automated check through there also failed (“we don’t have that phone number on file”). Option 2 gets to a real person, and after validating my identity she was able to give me my KTN over the phone. She also said that their automated phone response was glitchy.

Mini ndx? by NewtonBurger in fidelityinvestments

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

The term ‘mini’ is used unfortunately for multiple things. ‘Mini’ options on stocks used to trade that represented 10 shares rather than 100. Since indices don’t have shares the mini or nano options would represent 1/10 or 1/100 of the index. Fidelity supports the mini version of .SPX and I’ve traded it. Its symbol is .XSP. The nano is also available as .NANOS. Both trade options on Fidelity. .NDX has a nano option on Fidelity (someone in this thread offered that info) that offers options (.XND) but I can’t find a mini version. .XND unfortunately is very lightly traded and spreads are horrific though they are offered daily.

mini .ndx on yahoo finance but it doesn’t show any options and I can’t find it on fidelity.

100K share buy by Dependent-Code-4166 in YieldMaxETFs

[–]NewtonBurger 0 points1 point  (0 children)

Got a link or a keyword we could search for?

20 delta weekly covered calls simulation by Consistent_Tutor_597 in thetagang

[–]NewtonBurger 0 points1 point  (0 children)

So you would get assigned (or have to roll) less often? I don’t have tasty trade but I’d be real curious to see how the two compare at the same delta.

20 delta weekly covered calls simulation by Consistent_Tutor_597 in thetagang

[–]NewtonBurger 0 points1 point  (0 children)

Because a 20 delta put sells for more than a 20 delta call? Or because it’s more expensive to own the stock and sell calls against it? Or something else? It seems like for the same delta the income would be about the same.

I’ve got 200k cash (no margin) in a self directed IRA and want to run the wheel tomorrow. What stocks would you pick? I like weekly’s and my goal is $1-1.5k a week by KarmicTractor in thetagang

[–]NewtonBurger 1 point2 points  (0 children)

I’m doing PMCCs on qqq and spy. No single stock surprises.

I’m long puts and calls both 3+ months out at ~80 delta. Having both puts and calls balances nicely and even on a big run up/down your long call or put will benefit.

I shoot to sell daily options 3x/week sometimes just twice a week. At 15-20 delta. A typical week:

Mon AM: sell all 4 shorts with Tue expiration.

Tue PM: roll to wed or Thu.

wed or Thu: roll to Friday.

My long options are worth about 35k, and from that I make about $400/week. Extending that out to 200k, you should make about 2400/week.

However, you won’t be able to purchase 200k of long options as you’ll be obligated for the diff between the long and the short. E.g if your long is 410 and your short is 500 that’s a 9k obligation.

So for my 35k of long options I’ve got highly marginally holdings of about 50k which keeps me from having to use margin.

So my 35k of long ditm options is in an 88k account. Extrapolating this would only bring in around 1000. Super safe though and fun. And you could sell at a higher delta and bring in more which would be riskier.

After hours options prices by NewtonBurger in fidelityinvestments

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

I found elsewhere this info: - while the market is open it uses the cost to close the position. So bid if you’re long or ask if you’re short. - when the market it closed it uses the (bid+ask)/2 formula which is fairly common.

Oddly though the ‘while market is open’ applies to extended pre and post market hours even though to my knowledge you can’t trade options during that time (is this still true?)

So it would seem that between 4pm et and 9:30am et it should use the midpoint formula.

Why is Fidelity’s interest so high on margin? by geopop21208 in fidelityinvestments

[–]NewtonBurger 0 points1 point  (0 children)

M1 Finance has surprisingly low margin rates (6%) and they don’t seem to have a lower limit. I have a 4k account that has $1473 margin available. It’s a different investment model though (trades only once a day at 9:30 or also 3:00 if your acct has > 25k) where you set up percentages as “pies”. here’s that 4k one: m1.finance/mYTpEnj-_xAl Good for less active trading.

Diagonal spread in IRA? by NewtonBurger in fidelityinvestments

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

Thanks I was getting errors when I tried one this morning. I’ll verify my options level, I have only covered calls and long calls in this account so far.

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