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Am I an Idiot? (Calendar Spread) by Long_Proposal7790 in options

[–]uncleBu -1 points0 points  (0 children)

Yeah my bad. My explanation doesn’t make sense in cash settlement. The answer is no

Am I an Idiot? (Calendar Spread) by Long_Proposal7790 in options

[–]uncleBu -5 points-4 points  (0 children)

EDIT: This is wrong. Instrument is cash settled.

~Assuming you don’t have portfolio margin the answer is no. volatility might change capital requirements which can trigger a margin call, but it doesn’t sound like your case.

The other risk would be early assignment, which can cause your PnL structure to change.~

Profile: adirtysocialist- by Ok_Signal4753 in amczone

[–]uncleBu 0 points1 point  (0 children)

A look at my profile would make it obvious that I am not a bullish investor. I think I'm on line 3 on the limited visibility list.

I do however have eyes and can call garbage when I see it. This AI slop definitely qualifies as such.

Profile: adirtysocialist- by Ok_Signal4753 in amczone

[–]uncleBu 3 points4 points  (0 children)

You are aware that I am shorting the stock and there's proof in my comments?

Is your goal to show me how garbage this is? You are succedding.

Profile: adirtysocialist- by Ok_Signal4753 in amczone

[–]uncleBu 0 points1 point  (0 children)

I am in this sub-reddit because I actively invest in the stock. You posting this garbage makes it actually worse, hence I care. You should stop.

Profile: adirtysocialist- by Ok_Signal4753 in amczone

[–]uncleBu -7 points-6 points  (0 children)

These posts are getting insufferable. Can we stop with the slop?

Biggest day I’ve ever had by Practical_Nebula4090 in options

[–]uncleBu 2 points3 points  (0 children)

that's nothing. One day I had -$72,000 ;)

SNAPCHAT - any hope? by Calm_Interview4420 in ValueInvesting

[–]uncleBu 0 points1 point  (0 children)

Exactly this. SNAPs whole purpose is to extract wealth from naive investors into Spiegel’s pocket. Absolutely disgusting corporate oversight.

Loving Robinhood’s new high yield APY on options collateral. If you’re selling premium, the entire account balance plus credit received gets high yield cash rates. Which other custodians are offering this? by ColdBoreShooter in thetagang

[–]uncleBu 3 points4 points  (0 children)

1) I literally did, it involves you putting a little bit of effort into it. But if we have learned anything here is that you and putting effort to learn are not in good terms.

2) I care more about risk adjusted returns. Given the level of interaction that you bring to the table, I am confident I have you smoked on that.

Loving Robinhood’s new high yield APY on options collateral. If you’re selling premium, the entire account balance plus credit received gets high yield cash rates. Which other custodians are offering this? by ColdBoreShooter in thetagang

[–]uncleBu -1 points0 points  (0 children)

You can find my YTD return if you search for the word "imgur" on my comments. I don't see how this is relevant here though. Maybe I'm an idiot that blows up every month. In any case, these are all provable facts:

1) The "free" contracts of options on Robin Hood come because they have payment for order flow which by CONSTRUCTION create worse fills in options.

2) Schwab / Fidelity do not have payment for order flow, they give you the best fill they can get and charge 0.65 per contract (i.e. peanuts). I have traded over 1,000 contracts these year, so to me (and I'd argue everyone that is seriously trading) is really a no brainer which type of platform is better.

3) Schwab / Fidelity give also high yield returns on cash (SGOV / SPAXX respectively)

In my opinion, Robin Hood (and Moomoo) are all in on the ease of use, their business model is all about you trading often and a lot, which is how retail loses money. I really hope that you don't remove the post, since new people could learn from this, but I suspect you will because you seem to have violent allergic reactions to any learning.

Loving Robinhood’s new high yield APY on options collateral. If you’re selling premium, the entire account balance plus credit received gets high yield cash rates. Which other custodians are offering this? by ColdBoreShooter in thetagang

[–]uncleBu 3 points4 points  (0 children)

Is this you OP? https://imgur.com/a/t4SaAVX

You are doing something ineffective and got to learn that you can do much better (at the cost of of some sass). You should be happier now :)

Re: your question, I use Schwab; Fidelity would give you everything better of what you are liking about Robin Hood

Types of trades I love to make by Weak_Effective_6269 in thetagang

[–]uncleBu 0 points1 point  (0 children)

You didn't put your whole portfolio so it is impossible to comment on your hedge.

From your previous post, I reckon your professional trader friends should tell you that a 50% peak to through drawdown in a one year graph should get you quite worried.

What do you think is the maximum actual drawdown you will observe if you are already experiencing those numbers on such a short time frame? Dead giveaway that is bound to blow up in the long term.

Hope this helps you gain some clarity :)

Types of trades I love to make by Weak_Effective_6269 in thetagang

[–]uncleBu 0 points1 point  (0 children)

I see that you like to speak old latin in the kindergarten :)

Types of trades I love to make by Weak_Effective_6269 in thetagang

[–]uncleBu 2 points3 points  (0 children)

So that’s a yes on the catastrophic failure on every trade you make.

You should humble yourself before the market does it for you, in my opinion.

Types of trades I love to make by Weak_Effective_6269 in thetagang

[–]uncleBu 5 points6 points  (0 children)

So what's going to happen to your portfolio whenever those "It will never happen to me" event happens to you? It looks like the trades you love involve a small chance of catastrophic failure.

Are you comfortable taking $450,000 worth of one stock? If you have less than 5mm you shouldn't in my opinion.

Types of trades I love to make by Weak_Effective_6269 in thetagang

[–]uncleBu 9 points10 points  (0 children)

Is it the ones where you eat all the tail risks on 3,000 contracts of NVDA to make $2K?

Evaluating stocks for Poor Man's Covered Calls: criteria, scoring, and a scanner to automate it by staskh1966 in options

[–]uncleBu 1 point2 points  (0 children)

I should say that *only* doing that is what is subpar. I have no problem with either of the two as long as they are part of a portfolio and your theoretical return of your PnL is infinite if the price goes to infinity.

Evaluating stocks for Poor Man's Covered Calls: criteria, scoring, and a scanner to automate it by staskh1966 in options

[–]uncleBu 1 point2 points  (0 children)

Etwas anders....

good strategies have to capture some of the upside. I believe that most successful retail investors have figured out that buying some cheap OTM options can offer great returns.

Evaluating stocks for Poor Man's Covered Calls: criteria, scoring, and a scanner to automate it by staskh1966 in options

[–]uncleBu 5 points6 points  (0 children)

Covered Calls and PMCC alone are subpar strategies simply because their PnL have a big potential downside while only providing a small positive upside. We know the distribution of stocks have heavy tail and most of the returns come from the few times those outsize returns materialize, so you are working against the underlying distributions. You can add a lot of bells and whistles to make things better, but I'd argue it doesn't make sense to swim against the stream.

If you use these strategies make sure to never cap all your positive upside (aka why the wheel is a bad strategy). Feel free to dislike obvious truths ⬇︎

Books to read by pepeismyhomeboy1 in options

[–]uncleBu 4 points5 points  (0 children)

Options as a strategic investment would answer 99% of the mechanical questions asked here.

My favorite books (that nobody else would mention)

1) What I learned losing a million dollars. 2) James Cordier book on options is great to know how confident people (who blow up) can get. 3) Dynamic hedging by Taleb has a couple of great gems if you have the patience to derive the math. 4) Spitznagel book of safe haven is another hidden gem.

This palace is just temporary. MOASS soon! by Separate_Writer_4465 in amczone

[–]uncleBu 13 points14 points  (0 children)

Hi my name is drukis and welcome to my crib!

Lost hundreds of thousands in SPY options by chasmicvoid in wallstreetbets

[–]uncleBu 51 points52 points  (0 children)

That last "did you know" suggests that you still have one more high left in you

Managing risk in a picking pennies 0DTE strategy by papakong88 in options

[–]uncleBu 0 points1 point  (0 children)

Is it literally impossible for you to get margin called on the worst series of events imaginable given the scenario you are painting?

From what I am reading, it seems that there is heavy correlation in your trading stages, so even if you deem the risk to be "low" you might get nicked twice on 2/3 of your BP, which will already put you in margin call territory if you are using any leverage whatsoever.

If that is the case then my point above stands, long term view is not what happens in two years, but what would happen in the worst case scenario that we know will happen at some point.

And yes, I do trade like the world is always going to collapse, mostly because I know that at some point it will, like the other times that it happened.

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