Are there advantages to selling calls at several strike prices?

[MathTeacher]

It sucks. Missing an oppo like that after it trades 2x implied vol (as realized) is tough. I was not making a call on XOM just the probability of the thing trading ITM. It only works as prot if it's realized. IOW, if you thought I was making a directional call on the shares I did not mean to give you that impression. I had no clue where it would end up. Beta was higher (mkt was rallying).

I like to run synthetic straddles (2xOTM calls) as you're going to earn even if the strike is touched.

Thanks.
I am learning by doing.
Can be expensive education.

 

[destriero]

My oldest started trading (-)volcorr (mkt up/vol down) by buying 50 shares of spot and selling one OTM call. It's the same as a synthetic-straddle but a half-lot. It allows for diversification in odd lots.

 

[MathTeacher]

It sucks. Missing an oppo like that after it trades 2x implied vol (as realized) is tough. I was not making a call on XOM just the probability of the thing trading ITM. It only works as prot if it's realized. IOW, if you thought I was making a directional call on the shares I did not mean to give you that impression. I had no clue where it would end up. Beta was higher (mkt was rallying).

I like to run synthetic straddles (2xOTM calls) as you're going to earn even if the strike is touched.

I am planning to trade some straddles/strangles with upcoming earnings...
NIO
AMC
NCLH
PBR

 

[Arnie Guitar]

MathT

Didn't read all of the thread.

500 shares is a perfect amount to ladder out.
I don't know your cost basis, which is important.
Also, what is your goal?
That will really dictate your strike price.

I'd crawl before I walk, walk before I run.
Do one contract next week,
preferably above your cost basis.
See how it works out.
At the end of the week, roll it out.

 

[MathTeacher]

I didn't ladder
I sold all 5 contracts at 123 strike price
I mostly sell OTM calls

 

[Cabin111]

Math, you're doing fine. Do the CC with the put buy backs for protection. Understand it fully...Do not pass go, do not collect $200.

The last thing you want to do is blow up an account...Not understanding what you are/were doing. Getting a sticky finger or something.

As you gain the knowledge, explore further into options...

 

[destriero]

Math, you're doing fine. Do the CC with the put buy backs for protection. Understand it fully...Do not pass go, do not collect $200.

The last thing you want to do is blow up an account...Not understanding what you are/were doing. Getting a sticky finger or something.

As you gain the knowledge, explore further into options...

Cabin, you realize that you're recommending a synthetic bull spread, traded as a 3-way?

 

[Cabin111]

Cabin, you realize that you're recommending a synthetic bull spread, traded as a 3-way?

Des, he said he has done about 3 puts in his lifetime!! He is still working on CCs...With put protection. He has never laddered with time or price on CCs.

Let him walk first...Understand what happened.

PS He made money on both sides...Hardly ever done for newbies.

 

[destriero]

Des, he said he has done about 3 puts in his lifetime!! He is still working on CCs...With put protection. He has never laddered with time or price on CCs.

Let him walk first...Understand what happened.

PS He made money on both sides...Hardly ever done for newbies.

Stock + put - call = synthetic bull spread. He can simply price the 111/120 bull spread to monitor the position. It is the reduced position and has utility in that it appears less abstract

 

[Cabin111]

Stock + put - call = synthetic bull spread. He can simply price the 111/120 bull spread to monitor the position.

That's what he did with the 500 shares of XOM...At earning time.

No rabbit hole here but, his wife doesn't even want him to do covered calls. I know because it happens to me...Quality stocks get called away and you are left with dogs.

What I have ended up doing (just me), is doing leaps on quality stocks way OTM. For stocks you want to hold onto, XOM seems like something you want to keep for years/decades...

Except for solar, a pipe dream as per Homer.