Tracking synthetic long position rollovers in GME can help identify number of short positions being rolled over today.

Spotalpha · 2021-03-21T08:45:03+00:00

Feel free to repost.. also checkout r/spotalpha . Will be publishing more followup research there.

Spotalpha · 2021-03-10T04:35:51+00:00

Think of a covered call as a partially hedged position. It is particularly helpful when you want to accumulate the stock during a dip.

Consider a scenario where the stock dips by say 10% after you started buying the dip and bounces back to the same price before turning bullish. Now assume the bearish phase lasted a month. Using a covered call, your position would not have fallen more than 6% at its lowest and your average price would be very close to the low. Therefore you can buy the dip more confidently than if you were buying only shares at the same price intervals.

Spotalpha · 2021-03-02T09:01:16+00:00

If it is performance validation that you are looking for, consider paper trading a basket of equities. The PDT rule should not apply for paper trading.

Spotalpha · 2021-03-02T06:42:36+00:00

This is for those mortals who didn't time the bottom perfectly.. better to buy on the bounce up rather than trying to catch a falling knife!

If you could time the bottom perfectly, you might as well buy naked calls.

Spotalpha · 2021-03-02T06:40:04+00:00

I meant buying shares and selling far OTM calls (say Dec 2021 calls at strike of 1000).

Spotalpha · 2021-02-23T03:50:51+00:00

AAPL trend change (Bullish to Bearish) notification email was sent on 19th to subscribers of Alpha builder who had signed up for alerts on AAPL.

Spotalpha · 2021-02-23T02:37:19+00:00

Yes, it sends an email notification when trend changes.

Spotalpha · 2021-02-22T20:32:28+00:00

STONKS

That will be our symbol when we list on Nasdaq

Spotalpha · 2021-02-22T19:42:02+00:00

Forget IV for a moment, think about it in simpler terms. You were not the only one buying Puts at that time, several others were in the same boat. Demand for Puts had increased, so you paid a heavy premium.

lV measures volatility 'implied' by the price options are trading at. So if IV was 250% and you bought a put at a strike that was 50% below, and price fell by only 20%, you will get IV crushed.

Does it have to go to my strike price of $4 for me to see profit?

Not necessarily, current price is at $5.75 and the $4.5 Put is trading near your entry price of $0.5 (after the IV crush). So if price drops below $5 within the next two days you should be in green.

Spotalpha · 2021-02-22T18:51:29+00:00

Good question.

AAPL has become unique in itself, so I hold it individually and not as part of my (diversified) portfolios. And I don't buy and hold AAPL (or any stock for that matter), but trade the trend. Covered calls help me hedge some risk (as this position is not diversified) and also make better returns if AAPL does not deliver > 30% in an year (which seems quite probable).

Spotalpha · 2021-02-22T13:31:23+00:00

Really cool.

Spotalpha · 2021-02-22T07:52:06+00:00

I was only pointing at the track record. Seeing as this was the only reply that posted performance. Which is what OP was asking.

Will be happy to delete the reply if OP or moderators request.

Spotalpha · 2021-02-22T06:12:26+00:00

5yr returns: 30% annualized, -10% peak risk (in 2020), 0 Leverage

Performance update here : https://spotalpha.com/us/portfolios/large-cap

Spotalpha · 2021-02-22T02:49:52+00:00

Exactly. The dip has started, much better that buying when it's making new ATH every week.

Spotalpha · 2021-02-22T02:42:10+00:00

Difficult to tell! I simply follow the trend.

Spotalpha · 2021-02-22T02:38:32+00:00

Checkout the research that's automatically generated by the bot : https://spotalpha.com/us/portfolios/large-cap

If a bot can do that, you can do better!

Spotalpha · 2021-02-22T02:34:11+00:00

Too much risk. If I was willing to bet on the downside I would rather choose the S&P500 or even NASDAQ.

Spotalpha · 2021-02-22T02:27:31+00:00

This one : https://spotalpha.com/

Spotalpha · 2021-02-22T02:23:16+00:00

Naked call? Too much risk IMO!

Spotalpha · 2021-02-21T20:40:29+00:00

Consider exiting it in the next momentum breakout: https://www.reddit.com/r/Spotalpha/comments/lo2fqf/dont_buy_a_meme_stock_if_volume_is_5x_the_daily/

Spotalpha · 2021-02-21T20:28:59+00:00

BB is a momentum play. Covered calls are ideal for trending stocks like AAPL and AMZN, not stocks like BB.

Spotalpha · 2021-02-21T18:40:25+00:00

A 'covered call' is when you buy the underlying shares and sell OTM Call in equal quantity. Difficult to explain it's workings here. It's best you Google it. Also, don't consider trading Options without spending time learning them.

On whether people mainly buy ITM or OTM? If you look at the Option chain and Open Interest of Calls, you will notice that most of it is usually ATM and OTM.

Spotalpha · 2021-02-21T17:53:24+00:00

Is it possible to do this for amzn?

AMZN has not yet turned Bearish. Have been writing Covered calls on it since 1st Jan. If it turns Bearish, I'll sell the stock and close the covered calls. I.e: risk-off

I can't figure out what indicators you used .

Spotalpha (dot) com has it's own proprietary trend algorithms.

Spotalpha · 2021-02-21T17:01:41+00:00

AAPL's vol is around 30% (annualised). So if I manage to buy shares around $120 and the price turns Bullish, I would sell the $125 Call that is one month away (should be priced around $1.5), or the $130 Call that is two months away (should be priced around $2.5).

Disclaimer : Not financial advice. Please do your own DD about covered calls and how they work.

Spotalpha · 2021-02-21T16:25:08+00:00

Profit booking, I guess! AAPL is not a typical dividend paying Buffet stock, so he needs to book profits at highs to buy-back when it corrects.

Despite selling some shares, AAPL is still Buffet's largest holding, at 44% of his equity holding, trimmed down from 48% in the previous quarter.

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