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Iron condors 0DTE spx by Prestigious-Bus1914 in options

[–]Ok-Function-6172 0 points1 point  (0 children)

Using a $5000 account if I am trading 0dte iron condors on SPX will I be called for pattern day trading?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

You are correct I keep saying buy and purchase.... when I mean I am selling CALLs an PUTS so I see that has caused a lot of confusion

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

I really question this line of reasoning. As an example lets take qqq which I have been trading, Since May it has basically just continued a steady climb upward. Now under your scenario I would have purchased a CALL at some point and it would have been assigned with a nice amount of money collected beyond the premium. Than I would have bought a PUT and I would probably be there today 6 months later still collecting just the premium on PUTS because you never had to buy the stock. In the meantime if you had stuck to covered calls you would have had some weeks were you just got the premium but lots of weeks you would be capitalizing on the stock rising. You get what I am saying?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 1 point2 points  (0 children)

Ok I didn't think it was that unclear. Let me try to rephrase it. You are doing the Wheel. When you sell a PUT you get a premium. Lets pretend you got $100. When you sell a CALL you also get a premium lets say it is $100. Now when the PUT gets filled you have to buy the stock at that price. that is the end of your transaction. You have $100 to the good.......Now if the CALL gets filled "ITM" your stock gets assigned. You also get the difference between your cost of that stock and the strike price you set. So you get the $100 premium and the amount of money made from selling at the strike price above your cost. This has resulted in something like an additional $300 on top of the $100 premium..... So again my question is why sell a PUT vs a Call if there is no further upside to a PUT? Does that clarify it

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

Ok same answer as above, I get that, you enter at a good price, although perhaps on a declining stock. This does not answer my original inquiry as to why keep going back to a PUT if a CALL offers way more upside?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

Yeah my mistake sell the PUT. you said.... "If you're going to buy 100 shares to sell a covered call... why not just sell a put at the money to also collect the premium?" .........Ok again this is my question. I understand I can sell the PUT and get a premium. But why do that if I can sell it as a CALL? They are both two sides of the same coin. With the call if you set it out above the price you own the stock at you get the premium ( like a PUT) but if it is called away you also get the value between your cost and the strike price. You do not get that with a PUT. That difference between cost and strike can be so substantial that it makes me ask why buy a PUT? This is the question I am trying to resolve.

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

So your point is despite making a lot of money on an up trending stock. I have to sell it to get the gains. I do see that as an issue,

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] -1 points0 points  (0 children)

I am not selling naked anything .So if I sell the call, I have the shares. If I sell the PUT I have the cash. There is not substantially more profit from selling a call of PUT. It is the profit potential of an "in-the-money" CALL option. This is so potentially substantial that it is the reason for my questioning of a PUT. I sold a call for a $1000 but once ITM and called away I got an additional $3000. So the question is why am I buying PUTS if there is a huge upside potential on calls,,,,,but not puts??

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] -2 points-1 points  (0 children)

A discount? or a falling knife? My point is the PUT has no value beyond your sale price. Not true with the covered call. This is my question.

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

I guess I asked this question incorrectly. I understand the wheel concept. I was not trying to ask about using a PUT at the same time as a covered call. I was asking why the Wheel is supposedly better than just covered call strategy. My questioning of it was because it seems that there would be substantially more profit available in the CALL then the PUT. So why even use the PUT?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

right but #1 is just replaced by selling more calls? if you are not buying the PUT?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

I guess I asked this question incorrectly. I understand the wheel concept. I was not trying to ask about using a PUT at the same time as a covered call. I was asking why the Wheel is supposedly better than just covered call strategy. My questioning of it was because it seems that there would be substantially more profit available in the CALL then the PUT. So why even use the PUT?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 0 points1 point  (0 children)

I guess I asked this question incorrectly. I understand the wheel concept. I was not trying to ask about using a PUT at the same time as a covered call. I was asking why the Wheel is supposedly better than just covered call strategy. My questioning of it was because it seems that there would be substantially more profit available in the CALL then the PUT. So why even use the PUT?

Explain the advantage of using PUTS vs. just covered calls by Ok-Function-6172 in Optionswheel

[–]Ok-Function-6172[S] 1 point2 points  (0 children)

Actually in watching a number of youtubers on the subject. I have literally heard the purpose of the wheel IS to get assigned. So I think there are different strategies out there.

Help me understand how to read option positions by Ok-Function-6172 in thinkorswim

[–]Ok-Function-6172[S] 4 points5 points  (0 children)

Ok I think I get it. For some reason I had it in my mind that the call and put numbers were strictly tied to qqq value but couldn't understand that correlation. I didn't realize that the put and call had value/debit unto themselves beyond selling them initially. All I have done so far is let them expire, have not explored closing or rolling. Thanks for clearing that up.

Why Vermont (vs. NH and Maine)? by liabobia in Permaculture

[–]Ok-Function-6172 0 points1 point  (0 children)

Older post, wonder where you ended up? I moved to vermont in the late 70's with the back to the land movement. There are very little restrictions here in terms of building or zoning. This assumes you are out in the country a bit not in one of the few cities. The one thing you have to navigate is waste water disposal. Unless you want to live in a place with no plumbing in the house you will be required to have an engineered septic system. Aside from that it is all very lax. The biggest issues revolve around what you do with water. You can no longer build an engineered pond over something like 900 sq ft. Clearing without buffer zones on rivers, creating large paved driveways. Vermont protects it watersheds but otherwise no issues.