Search results

Did you not read my first post? Where did I say I was entering a trade? I was calculating everything on tos and nothing looked profitable even if directionally correct. Really, every road leads back to 0-3 DTE long options because imo they yield the best risk reward as long as you manage risk...

Not that hard at all if you don't take away your best weapon...TIME. Probably 99% or all trades that have ever been closed at a loss could have later been closed at a profit. With futures you are faced with carry over fees, interest with forex etc. Options you have an expiry and time decay. I...

That's the point. It IS a rabbit hole if you are not using them as intended originally to compliment a stock position. I am still waiting to be proven otherwise.

What are you trading? DTE? What's your trading plan for the upcoming week? Sounds like a broken wing butterfly...

I just had to come back to this. Why are you so antagonistic? All I did was say I was analyzing some options strategies that to me didn't look like they would be profitable even if I was correct directionally. It's like you treat this forum as your own personal sandbox and feel you have earned...

Show me an example. Yes we all understand that IV dictates price but collecting the premium is just the beginning. You have to actually keep the premium. Seinfeld said it best:

Show me an example of selling premium where the risk reward isn't atrocious.

Actually imo 0-3 DTE are the least risky if you know how to manage them. The important part is not oversizing your positions. I eeked out about $1000 in a week of trading 0-1 DTE's with less than 1% risk as a rule. I would also hold them over night, actually I preferred purchase 1 dte and hold...

Didn't take long for the house "pro" to make an appearance. You are missing my point entirely because you were so eager to pounce. We all understand this...my reasoning is that option strategies are a fools errand. To use your analogy against you. Options are like getting all the tools needed...

I have been looking at different option strategies, but none of them seem to have a reasonable chance of making any consistent profits once you factor in risk reward, premiums paid and time decay. Everything is priced to basically cause maximum pain to everybody. The strategies I was analyzing...

Aug4 18 ---> 28 DTE ---> .32 Aug4 19 ---> 28 DTE ---> .25 -comparing price to the current aug4 19 strike ($3 otm) with the same expiry. With a stock price of $15 on Sep29, the Sep29 18 contract will be $3 otm and 28 DTE. (Sep.29 18 ---> 28 DTE ---> -.69 or 80+-.69 =.11) +5% volatility then...

If my math is correct on this example with BITO: 1 aug4 $18 call contract is .32 1 sep29 $18 call contract is .80 if price drops to $15 by July10: Aug4 option will have lost -.24 Sep29 option will have lost -.46 So the cost to roll out to the sep29 option should be about .34 plus the -.24 =...

The fed announcement was a big nothing burger. Typically I ignore all news/noise because it correlates with the EW. I was allowing for a move, thus the wider OTM strikes, but usually it will gap up or down AH not intraday. Anyway, just cutting my teeth on 0DTEs so need to make some adjustments...

Must be just a coincidence but I'm not convinced.

I sold an IWM iron condor with the short strikes at 190/184 while it was trading at 187 and then the price kerplunked. I let the long put run for a profit which helped ease some of the pain, but wth? This was almost 3 SD out and it got touched. Do larger positions get the attention of hedge...

Yeah I was thinking the only margin exposure would be the spread risk ..but apparently there will be a % obligation on the underlying committment.

Update. So been reading the literature at TD: Uncovered naked calls - 100% of premium LESS any otm amount PLUS subject to minimum % requirement on the underlying interest. the minimum percent for a short sale is 30% but not sure what it is in a spread.

Ya but it's a spread so really 100 short calls @ 416, and 100 long call options @ 417 is a $10,000 trade since that's the maximum risk, so that is the only margin they should require...and going but my tos paper trade that's exactly how it works.

This video answered all my questions on what happens when you don't have the funds, or the shares to cover an assigment. At the end he mentions he uses TD Ameritrade which I think uses the ThinkorSwim platform, and he gives basically 2 scenarios with brokers. They will deposit the shares from...

Yes I totally agree. My broker doesn't allow naked calls, but does allow shorting stocks. That never made sense to me because what's the difference? https://seekingalpha.com/article/4415652-option-strategies-writing-naked-calls-alternative-to-shorting-stocks I'm still not convinced an...