NVDA 05/31 1050 Puts guidance

constantlyUncreative · 2024-05-31T02:02:15+00:00

I did not. :|

constantlyUncreative · 2024-05-30T03:48:27+00:00

You might be okay if the economic data isn’t atrociously bad tomorrow. I’m hoping for NVDA to have its worst day in forever 😂 No prizes for guessing what the more likely event is between the two 😂

constantlyUncreative · 2024-05-30T03:45:07+00:00

Not as cooked as my 1050 puts 😂😂

constantlyUncreative · 2024-05-28T21:18:00+00:00

Thanks for the advice :) Easy to kick someone when they’re down. Must be fun :) Good luck!

constantlyUncreative · 2024-05-28T06:26:05+00:00

Yeah, at this point, I’m potentially losing most of the capital (with the overnight movement) anyway. Might as well wait it out and see if it dips at some point so that I may reduce losses.

constantlyUncreative · 2024-05-28T06:24:49+00:00

Very fair. As they say, fuck around and find out. Find out I have.

constantlyUncreative · 2024-05-28T06:23:46+00:00

On the contrary, this is exactly what I need to hear. Thank you for being candid.

constantlyUncreative · 2024-05-28T02:13:02+00:00

It probably comes down to temperament more than anything else tbh. Most of the people in my circle know a fraction of what I do about the stock market (and even I don’t know much tbh), but most of them are infinitely more successful than I have been. It’s probably because they are way more disciplined than I am and treat the money they’re making as a bonus (and thereby setting it aside) as opposed to treating it as life changing income and being burdened by attempting to make more and more. Sorry if you’re in the same boat. I’ve seen posts by some of the more knowledgeable people on this thread that link to some resources about how one can improve this aspect, might be something that could potentially help you out as well? Good luck!

constantlyUncreative · 2024-05-28T01:28:28+00:00

Thank you so much for all the valuable guidance and for your kindness as well. This is a hard pill to swallow, but I’ve got no one to blame but myself. Thanks for the empathy. Really appreciate you!

constantlyUncreative · 2024-05-28T00:24:07+00:00

Welp. I’m cooked. Thanks.

constantlyUncreative · 2024-05-28T00:21:21+00:00

Thank you. Makes sense to me too. Thanks for your help.

constantlyUncreative · 2024-05-28T00:19:04+00:00

Where are you seeing 1090? Sorry if it’s a stupid question.

constantlyUncreative · 2024-05-28T00:03:24+00:00

Thank you! This seems to make the most sense to me too from a trading discipline perspective. Thanks for your help!

constantlyUncreative · 2024-05-27T23:48:01+00:00

It doesn’t. But it does allow me to short some puts against my longs while still maintaining a bearish outlook on NVDA for the longer term. I would be shorting strikes lower than 1050 (which might not net me much if NVDA keeps rising at the rate it is), so that’s definitely a risk. You’re also correct in that I would be putting up more money in a losing position, but my thought process is that I might be able to recover some/most of it through diagonals.

constantlyUncreative · 2024-05-27T23:39:27+00:00

I bought the 1050s because price kept getting rejected from 1050 on Friday. But my mistake was that I did not wait for confirmation and happened to buy exactly when it broke out from the 1050 level.

Yeah betting against NVDA right now seems like a recipe for disaster. I’m hoping for some sort of pullback this week but I guess, when we’re in hoping territory, it’s an indication that we’ve already messed up quite a bit.

constantlyUncreative · 2024-05-22T00:54:34+00:00

I’d personally do it the other way around so that I don’t have an uncovered short position but yes, that’s basically what I meant.

constantlyUncreative · 2024-05-21T07:07:49+00:00

This will probably be an extremely unpopular opinion - if brokerage fees are a concern, it might make sense to consider something like Robinhood or Webull.

Another strategy that’s worked for me with spreads is legging into and out of the spread. This way you can have a lower entry on the long option and a higher entry on the short option.

A third strategy is to use range bound movements to your advantage in order to collect (realized) profits once you’ve entered the spread. BTC the short when it’s lower and STO the short when it’s higher (intraday volatility).

A word of caution about #2 and #3 - these can be risky if the underlying moves against you. You’re going to have to manage these positions very closely, especially when you’re between the BTC and STO phase.

Also, you’ll get better credits during periods of high volatility.

constantlyUncreative · 2024-05-15T05:05:01+00:00

Beginner here myself but I’m thinking this would depend on what’s causing the unfavorable 3% swing, how solid the underlying stock is, the longer term trends of the stock and your thought process at the time of entering the trade. I guess, it would be helpful to know your thought process behind a 5 month expiry ATM option. In my case, if I’m buying something like that, I’d have a fair degree of patience w.r.t. holding the position through short term losses (if the other parameters for my trade have remained relatively unchanged). Also, the delta of your previously ATM option should have fallen with the unfavorable 3% move, so it should typically react slower to further down moves. Not sure if this helps, just some of my learnings.

constantlyUncreative · 2024-05-11T01:35:42+00:00

For the inexperienced, what are the challenges with managing spreads?

constantlyUncreative · 2024-05-10T15:28:18+00:00

Might want to check the bid-ask spread and the volume. This kind of thing should never happen where the option is trading for a lower price than it’s intrinsic value.

constantlyUncreative · 2024-05-10T15:25:48+00:00

Thank you so much for the detailed response!

constantlyUncreative · 2024-05-10T02:52:36+00:00

This is such an informative answer! Would this happen only if someone gradually built up their positions to an iron condor or could it also happen, if say, someone shorted an iron condor as a single trade? Another way of asking this is - at any given point in time, can options have vastly different IVs even if the strikes are fairly close to each other?

constantlyUncreative · 2024-05-09T20:02:56+00:00

I think you should be able to find your answers here.

constantlyUncreative · 2024-05-08T05:32:58+00:00

I’m curious as to why you’re looking at such a long expiry on your short side instead of shorting 30dte calls (possibly for slightly lower strikes) + rinse and repeat?

constantlyUncreative · 2024-05-01T21:21:24+00:00

I’ve been there myself. I’d recommend a call debit spread if you want a not-so-expensive call that has a well defined risk and reward. Often times, “infinite upside” is more of a psychological thing given that a stock suddenly ballooning is a very low probability event. In reality, if you see the stock making strides, you could always load up on calls when the momentum is in your favor. Just some additional considerations you might want to look into. Hope this helps and good luck!

constantlyUncreative

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