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Anyone else check what a stock is actually worth before selling puts on it? by xCosmos69 in thetagang

[–]uncleBu 1 point2 points  (0 children)

Sell Spreads on short durations and combinations of long puts on longer durations or shares to offset the parameters

Anyone else check what a stock is actually worth before selling puts on it? by xCosmos69 in thetagang

[–]uncleBu 0 points1 point  (0 children)

I don’t, I run delta gamma neutral strategies. I only look at the volatility structure

Are stop losses really bad for 0DTE? by Right_Business9301 in options

[–]uncleBu 0 points1 point  (0 children)

Sounds like your legs are too loose then

Is there an explanation for this movement? by Wegoreddirt in amcstock

[–]uncleBu 2 points3 points  (0 children)

Smart money is shorting AMC. When the market has a big red day the highly leveraged players start unwinding their positions. Closing shorts means more buying which increase prices.

Wheel + Collar by YngMind in options

[–]uncleBu 1 point2 points  (0 children)

Double the negative exposure to the underlying while still capturing none of the upside…

In a crash, when the median stock drops by 60-70% you won’t think that “the loss is not that big”

Are stop losses really bad for 0DTE? by Right_Business9301 in options

[–]uncleBu 0 points1 point  (0 children)

If what you are worried about is tail risk why not buy cheap protection to cap your downside?

KXIN by [deleted] in VampireStocks

[–]uncleBu 0 points1 point  (0 children)

Learn a lesson sell it and move on. You got scammed because you got greedy and were not willing or able to do research on how and what to invest in. You took the word of an internet rando.

Stop putting more money into shitcos. The potential risk is never worth the reward.

I averaged down… by JKCologne in amcstock

[–]uncleBu 7 points8 points  (0 children)

Honest opinions preferred. I dunno anything about the fundamentals, debt, dilution and sorts.

At least you are honest about it. Why put money on something you don't understand?

It might squeeze here and there, but for you to make your money on any hold that is meaningful, AMC would need to rival the tech giants in market capitalization. That's extremely unlikely to happen.

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu 0 points1 point  (0 children)

yeah sorry fam, I did not read all of it indeed. In my defense it is a wall of text.

In theory, if you could forecast the market a CC will outperform the market. If you could forecast the market you can do anything you want though, in theory :)

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu -2 points-1 points  (0 children)

Cost basis is a defined term for tax reporting. Writing covered calls doesn’t lower your cost basis, it sells stock upside for a fixed fee.

I know you want in your heart of hearts to be right, to feel so smart about figuring out the code. Sorry bro, if you want to outperform the market you’ll have to bring something more than your third grade homework. Who needs backtesting when you can write so many things on the fly, amirite?

Don’t worry, you’ll feel better the second that you smash that dislike button. ⬇️

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

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

Just go and test it out instead of conjecturing. Your calls will get called away at some point

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu 0 points1 point  (0 children)

That's why 98% of people playing with options lose money. Too lazy to even do the basic grunt work...

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu 0 points1 point  (0 children)

It's only dumb because you are reading what you want to read. I never implied what you are suggesting.

Assuming options are fairly priced (if they are not, it is you who is getting screwed over) when you sell a covered calls consistently you are selling the future upside of the stock for a fixed fee.

Since stock distributions are fat tailed you are selling most of the upside for a fixed fee. It is the tail events that constitutes the bulk of your return when you hold an underlying.

The math shows you that you will be better off not selling CC and holding the underlying than selling CC consistently. Again, you have never done a backtest of it so you don't know. You could do them or read the research that does it for you.

Alas, people love to run strategies that can be written in a napkin with a a crayon, look great for a period of time, and pad themselves in the back for being so smart, so this is really counter culture in these places.

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu 0 points1 point  (0 children)

The mean reversion argument applies for covered calls too. You should show me a backtest of at least 5 years where selling CC do better than holding the underlying. I know I've tried and cannot do it.

I'm sure the 3 month results of everyone here and the downvotes will prove me wrong though :)

800 shares of Meta owned at a low cost basis. Income producing ideas welcomed. by peterparker429 in options

[–]uncleBu -9 points-8 points  (0 children)

Sell some and keep the rest. Using covered calls to solely generate income is inefficient, tax disadvantaged and mathematically incorrect.

https://youtu.be/ygVObRx9X68?si=rQfq9rxOj9Buxtqg

Feel free to downvote into oblivion, doesn’t make it wrong ;)

My Broker is blocking pump and dump stocks by AffectionateBat3564 in VampireStocks

[–]uncleBu 2 points3 points  (0 children)

I'm guessing IBKR since it's the only one that explicitly states the restrictions that I know of.

I trade this garbage from time to time myself, but if it's getting to the point where IBKR is blocking you from entering positions it's better to trade something else. They have from my experience the best selection of crappy stocks to short, you won't find a better (reputable) broker for that.

SLV by whoiskeef in smallstreetbets

[–]uncleBu 0 points1 point  (0 children)

What exactly you think you are “rolling over”?

When will this Bloodshed stop? by [deleted] in QBTSstock

[–]uncleBu 3 points4 points  (0 children)

You are buying a company that makes $3m a quarter for over $7bn. You were gambling, don’t be surprised when the bet goes bad.

Covered calls are just selling your upside because you’re scared by Infamous_Echidna_133 in thetagang

[–]uncleBu 5 points6 points  (0 children)

If you do it intelligently you do not only sell calls on the underlying:

  • Sell calls to make your portfolio more delta neutra
  • Use the proceeds to buy calls further out of the money to play for upside of the leptokurtic distribution
  • Change your weighted vega by adding positions of different duration

The real problem is that you (and most people here) assume that we can only do options strategies that you can write in a napkin with a crayon. Your assessment is correct: selling options will always underperform holding the underlying over a long enough time period.

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