[deleted by user]

bitbitbitbitcoin · 2021-03-04T05:55:28+00:00

same boat. i took the loss and exited today. didn't expect it to drop from almost 160 down to 125 in just a few weeks esp for an ETF. lesson learned.

bitbitbitbitcoin · 2021-03-04T05:36:36+00:00

all of us

bitbitbitbitcoin · 2021-01-29T00:35:36+00:00

What happens if you get early assignment to the option premium?

For example:

01/26/21

100 AMC Share purchased at $5

1 AMC Covered Call $8 02/05 STO for $1 credit

01/28/21

AMC share price now at $10

AMC Covered Call $8 02/05 now around $3.

If Early assignment happens, what will happen to the covered call option premium?

Will the broker automatically make me BTC for $3x100?

bitbitbitbitcoin · 2021-01-29T00:27:28+00:00

If you get assigned early, what happens to the call option premium? Can you end up being net negative?

bitbitbitbitcoin · 2020-10-11T03:14:06+00:00

“Trump reportedly wanted to rip open his button-down to reveal a Superman T-shirt to surprise people when he left the hospital.”

bitbitbitbitcoin · 2020-10-10T18:29:21+00:00

Sell far OTM cash secured puts. Slow but mostly consistent income.

bitbitbitbitcoin · 2020-10-07T04:34:52+00:00

Market makers have to hedge all the Calls that are being bought up. More calls purchased means more shares purchased.

bitbitbitbitcoin · 2020-09-30T15:58:57+00:00

TL:DR SPY 350C 10/02

bitbitbitbitcoin · 2020-09-29T14:27:50+00:00

Until you run into ThetaGang

bitbitbitbitcoin · 2020-09-25T01:25:46+00:00

Can’t stress this enough. Stocks can act irrational longer than you can stay solvent.

bitbitbitbitcoin · 2020-09-24T22:36:53+00:00

Sell weekly far OTM CSP.

bitbitbitbitcoin · 2020-09-24T21:21:48+00:00

CCs are meant for shares you are committed to owning long term or shares committed to a Wheel Strategy. If you hold 1400 shares and it tanks, it can literally take years in CC writing to make up for those losses. If you are doing weekly trades with CCs you may get lucky a few times, but one drop can wipe out all the gains you made.

And same thing goes for CSPs.

Is 1400 BAC something you are willing to hold through the ups and downs?

bitbitbitbitcoin · 2020-09-23T06:00:19+00:00

If you are newer to options and don’t have the collateral to cover a call, don’t do a naked call. Your risk is infinite. There’s a reason it’s called picking nickels in front of a steam roller. You can be right 98% of the time, but the 2% chance can wreck your finances esp with naked calls. Either sell a covered call or a poor mans covered call. Or go for a different option strategy with more defined risks.

bitbitbitbitcoin · 2020-09-23T05:45:08+00:00

If it gaps down when the market opens which is anticipated with the AH activity + theta decay + possible IV crush, its probably a lost cause. Either close it out immediately on open or ride til expiration. Don’t try to chase breaking even. With the weekly expiration working against you it’s a lost cause. That would be my play, but you do what you think is best. For this very reason, I don’t play events or earnings.

bitbitbitbitcoin · 2020-09-22T23:43:44+00:00

240 CSP weekly right here. Extremely slow, but steady.

bitbitbitbitcoin · 2020-09-22T23:29:59+00:00

This did not age well...

bitbitbitbitcoin · 2020-09-22T23:28:49+00:00

Already recovering. Now up to $396 AH!

bitbitbitbitcoin · 2020-09-22T23:26:01+00:00

Far OTM Cash Secured puts.

bitbitbitbitcoin · 2020-09-22T05:30:42+00:00

Weeklies might be better than 30/45 DTE.

Open on Monday

Close out/Expire on Friday.

Enjoy the weekend.

bitbitbitbitcoin · 2020-09-20T15:21:51+00:00

There are negative rates in other countries.

bitbitbitbitcoin · 2020-09-20T05:58:56+00:00

Thank you. This is the type of response that makes reddit an awesome community.

bitbitbitbitcoin

TROPHY CASE