Search results

Trade 4 - Sold to open 10 PLTR Feb 19 28 puts @ 1.04 credit

Trade 3 - Sold to open 10 FUBO Feb 19 43 puts @ 1.40 credit

It has almost nothing to do with stock picking, other than picking a company I hope will still be around when the options expire. My primary criteria is always the percentage of premium, which is weighed against my assessment of the probability of a large or catastrophic drop. For that reason, I...

I mean that if I sell 10 GME 44 puts, I have $44,000 on hand to take assignment at that price. A few reminders to those who may be new to this thread: If you want to adopt this strategy in a serious way to make a living, as I have, you need to be well-capitalized. One or two positions that go...

What do you do to minimize black swan exposure? I have repeated many times I don't do leverage. Any one trade is only a small percentage of my total portfolio. How is the 98% of your portfolio that is not involved in put selling safer than that 2%?

Who is unaffected by a black swan event? So what is your point? No one should ever trade?

Then consider yourself boggled.

I already said I don't do it anymore. It's meaningless to me. This thread is already years old. I plan to be around for more years. The trade data will grow every week. Be patient.

Anyone who wants to know my Sharpe can calculate it themselves from the trades I will post.

Thanks CET for the holiday heads up. Totally escaped me. In light of that, I'm not waiting until Monday. I bought to close 10 GME Feb 12 40 puts for .01 debit. Sold to open 10 GME Feb 19 44 puts for 1.51. Volatility is disappearing fast on this one. Profit on posted trades so far: 5.09 or...

I'll commit to posting a trade or two each week. I challenge destriero to do the same.

The GME 40s I sold for $5100 will expire in a few hours. I added 10 more 45s last Tuesday for half that premium. Will add some more Monday. The GME phenomenon has really provided a shot in the account these past weeks to an already super-performing portfolio. Maybe somebody can provide a...

Meanwhile....I sold 10 more GME 40 puts for next week. For that, they gave me $5100, more than 12%. Yeah, it's an anomaly and I'll soon have to return to the more customary 2-3%.

Do the naysayers trade at all? If so, tell me what you do and I'll tell you how you can get creamed. I'm 5 years in to this strategy now. I've seen a 30% correction and a few other volatility spikes. I've had underlyings lose 50% or even more of their value multiple times. I've been carrying...

I'm guessing the put is worth slightly more than you received at this point. It's within one strike so I would hold at this point. But don't know how much it might deteriorate today with the down market. (Yes, 2% of the underlying. For stock at 15.50, 2% is .31)

Trading these super-high volatility stocks can pay a lot of premium, but they can also be very dangerous if you aren't prepared to adjust when things go against you. I'm not chasing the absolute highest premium I can find. Try to find a balance between stocks that are reasonably safe while...

You can get caught for long periods of time where the stock is underneath your strikes. So try to pick a company that won't go bankrupt.

NKLA lost nearly 50% in the last week - previous Friday close was 34.19. So it's exceptionally dangerous right now. I don't think I'd initiate a Friday trade on this one because of the possible gap on Monday. I would want to limit my exposure on this to one or two days. But if I was going to do...

I think I've laid out the strategy about as well as I can. Some of it is subjective - I enjoy the art of it. I don't decide what I'm going to do ahead of time. I might have an idea, but what is the market doing? How much premium is available? It's constantly changing. One thing that might just...

iddy, if you accumulate premium each time....