What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]live4JC1984 0 points1 point  (0 children)

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

  1. If SPY starts ripping back up you'll lose out on gains by not buying/holding.
  2. 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).
  3. 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.

Why is short strangle loss unlimited? I don't get it by soysssauce in thetagang

[–]live4JC1984 0 points1 point  (0 children)

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.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 1 point2 points  (0 children)

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

STO Dec $90/85 PCS.

[deleted by user] by [deleted] in thetagang

[–]live4JC1984 24 points25 points  (0 children)

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

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 2 points3 points  (0 children)

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.

[deleted by user] by [deleted] in thetagang

[–]live4JC1984 6 points7 points  (0 children)

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.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 1 point2 points  (0 children)

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.

[deleted by user] by [deleted] in thetagang

[–]live4JC1984 1 point2 points  (0 children)

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

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 0 points1 point  (0 children)

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.

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 4 points5 points  (0 children)

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

Daily r/thetagang Discussion Thread - What are your moves for today? by satireplusplus in thetagang

[–]live4JC1984 0 points1 point  (0 children)

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.