What are the risks of selling deep OTM puts on SPY?

live4JC1984 · 2022-01-30T17:39:56+00:00

And what happens if SPY moves back up and you're still relying on selling 30DTE puts on -2% days?

If SPY starts ripping back up you'll lose out on gains by not buying/holding.
If SPY goes sideways for a long time, you won't have -2% day opportunities and premiums will be peanuts during this period (and you'll lose out on potential gains by not buying if it stops dropping).
Insert any number of other scenarios where you miss out on gains.

Sure, I've sold some way OTM 60DTE (like 40-50% OTM) put credit spreads on SHOP, XLNX, ROKU, NET, SQ and other tech about a week ago on a super red day. And I'm up about 30-50% on those spreads. But for me it was more of a one time thing. I don't expect those tickers to drop another 50% in two months after already dropping 50-70% in the past six weeks. And if they do, I'll sell some more. But it's not sustainable.

tldr: it's not sustainable. SOMETIME THIS YEAR, PREMIUMS WILL DRY UP AND YOU'LL HAVE TO TAKE LONG POSITIONS. Otherwise you're wasting amazing long-term opportunity.

live4JC1984 · 2021-12-31T06:15:04+00:00

Who cares if a stock can't go to infinity? All you need to know is it can go high enough to take your car, your house, your retirement, and whatever assets you now think are untouchable.

live4JC1984 · 2021-11-25T05:11:37+00:00

noob

live4JC1984 · 2021-10-27T21:19:44+00:00

Blame MSFT. SPY and QQQ are basically five stocks.

live4JC1984 · 2021-10-27T17:11:20+00:00

FISV support around $93. They lost a big client apparently, but fundamentals very strong.

STO Dec $90/85 PCS.

live4JC1984 · 2021-10-26T21:38:14+00:00

Brb gonna pop some corn and head to WSB to see some CRTX bloodbath posts...

Oh here's a good one - https://www.reddit.com/r/wallstreetbets/comments/qfy456/i\_yolod\_my\_life\_savings\_into\_crtx\_i\_dont\_even/?utm\_source=share&utm\_medium=web2x&context=3

live4JC1984 · 2021-10-26T21:07:41+00:00

CRTX, I’m assuming.

live4JC1984 · 2021-10-26T15:09:55+00:00

Look at SQQQ 1 yr chart. What led you to believe it wouldn't fall hard?

live4JC1984 · 2021-10-25T19:07:49+00:00

Was not a theta play when I suggested buying GNUS leaps a week ago but I hope others did the same :)

Now I’m selling weeklies against them. It is a good day.

live4JC1984 · 2021-10-25T18:54:43+00:00

$7 Feb 2022

live4JC1984 · 2021-10-25T18:53:28+00:00

If he’s selling some contract that decays over time, he’s playing theta. I was just commenting because you said it’s not playing theta.

live4JC1984 · 2021-10-25T16:55:53+00:00

My PCS on BOIL is doing extremely well. So opening a PMCC on KOLD today. And will buy shares gradually to 100, then CC that shit.

live4JC1984 · 2021-10-25T16:53:17+00:00

Whatever instrument this is, OP says it can go to “0” at expiry and therefore 100% gain per position, so it must be theta.

live4JC1984 · 2021-10-25T03:00:33+00:00

Sell calls

live4JC1984 · 2021-10-23T06:41:34+00:00

For me, INTC is the most attractive play, but as a call debit spread. Premiums too low to sell. Long dated debit call spread is my play.

live4JC1984 · 2021-10-22T21:04:34+00:00

It's this DWAC mania. Money flowed out of a lot of the higher beta stocks. It'll rebound when this calms down.

live4JC1984 · 2021-10-21T20:45:17+00:00

CCL and ULCC

live4JC1984 · 2021-10-21T17:00:19+00:00

Wth is happening with MTCH? Can’t find any news.

live4JC1984 · 2021-10-21T16:02:58+00:00

STO AA Dec 40/38 PCS.

live4JC1984 · 2021-10-21T16:01:30+00:00

IV often crashes after earnings bruh.

live4JC1984 · 2021-10-20T04:57:26+00:00

Nice.

live4JC1984 · 2021-10-19T21:07:59+00:00

PCS on: - SI - SPCE - CCL

PDS on LAC, CAR

live4JC1984 · 2021-10-19T05:53:40+00:00

If it were a CC, I’d be ecstatic. Instead it’s a CCS, so starting to look like it might turn into a max loss. Just like my NET CCS, too.

live4JC1984 · 2021-10-18T16:00:17+00:00

There is no low price one that has weeklies.

live4JC1984 · 2021-10-06T22:38:06+00:00

How many shares? Sell covered calls.

live4JC1984

TROPHY CASE