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But to the OP, Instead ditch the shares and use that capital to buy a higher strike OTM call on top of the sold one, creating a vertical, up the lots, and you'll make way more money than any CC.

My question is: If you've blown up 5-6 accounts, and just blew up your 7th -26k, when your account net liq was down lets say 50% to 13k, did you revise and ponder that this account is well on its way to blowing up as well as those others? Do you have a position sizing problem? (scaling losers...

The counter-party is some secret algo machine hiding within a black box in Northern, New Jersey. lol

I doubt most covered callers know about dividend risk

Great work Bobby, keep it up!

Not trading as much as I usually do, this market is too wild, and I'm more of a delta neutrality kinda guy. Earnings is something i'll utilize, something to note which is odd, is for this season of earnings, theres not that many companies reporting and most companies are reporting before the...

How do you maintain net neutrality? Maintaining your delta? Just curious. And also @ionone you can spread throughout the term structure like duca mentioned. You can buy an option in a further month (July) and sell an option in a closer month (June) to initiate a calendar spread. Or you could...

arbitrage is locking in a risk free profit from a spread, from a discrepancy in price discovery. trading a vertical is not arbitrage, you’re buying one option, and financing it with another that you sold. Thus you have two prices within one trade (spread). a box spread, locks, jelly rolls...

Yes its a lil confusing, weeklies are created a few weeks before they expire. But its "ideal" to trade them with <15DTE, which is when they are best utilized for my strategy at least. I'm not trading weekly contracts that have 44DTE, I'd just trade the monthly expiration instead, which most...

Interesting that one of the names for 132 flies is the “Christmas” fly.. which I don’t really like. I have my own Ebonics for option strategies anyway, but I call 132/231’s the “swallowtail” fly. Which is a name for a gorgeous butterfly that is furry on its body lol

Earnings season has begun! I’ll be speculating on a few plays if the set up seems juicy! $JPM started the season off.. 2.19(est)/0.78(actual) yet stayed within the expected move. these are the types of set ups I like. So I’ll be detailing potential earnings trades. I passed on UNH, anybody in...

Does anyone know what symbol that is ^^^^ it looks like a lower case sigma, and looks like a snake. But I’ve seen many a derivatives formulae and never knew this variable.

Mostly all trading is spread trading. A vertical is spread trading. Buying Russell, Selling Dow is spread trading. Theres a million and one threads about spread trading on these forums, be my guest.

remember, at the core of this these are just PDE’s, a bunch of math formulae.. the first order greeks were originally created for market makers to manage the risk on their books in the aggregate. Then overtime retail started using it, but it was never meant for single trades. as far as the...

AAPL up another 5 bucks today, which equated to ($45.91) for the day and -42 on the fly overall. Currently: I'll outline more trades I'm looking to put on soon!

My fly is those red strips, the 235/45/55. AAPL is currently at a resistance no buyer zone, which it will most likey gap above and fill, or gap down today, which is what I'm hoping obviously, I'll see how the week plays out. I have some more flies to discuss in a bit! Spooz are down, looking...

They don't exist lol

vanna is underrated, I do look at it, I look at them all, only recently have I started. Its more of a intuitive sense kinda thing, more so than a compliment to my strategy. Optionality runs deep.

Imagine that. Theres actually humans out here living in this world who see such things and hawk over their dollars to peak into the dream of America, just to realize it was a quick blip of a "scam".