Covered 1 WYNN Oct 80 Call for $0.1 entry was $2.9
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Generating Cash Flow by Selling Calls
- Thread starter alphastocks
- Start date
Quote from alphastocks:
Covered 1 WYNN Oct 80 Call for $0.1 entry was $2.9
good trade. the whole consumer discretionary sector has been selling off for a while. - you have outlined a hedging strategy for your long portfolio, i.e. using mdy trackers - what would you consider as a hedge for this short strategy? my guess is that your long strategy returns profile is not quite symmetrical with this short one.
Quote from fader:
good trade. the whole consumer discretionary sector has been selling off for a while. - you have outlined a hedging strategy for your long portfolio, i.e. using mdy trackers - what would you consider as a hedge for this short strategy? my guess is that your long strategy returns profile is not quite symmetrical with this short one.
I gave up finding a perfect hedge, instead I trade multiple strategies at the same time to provide ample diversification. I allocate 75% to the longs and 75% to the shorts for a total of 150%. I use the rest of my leverage (max 2x) to short Calls.
Liquidity in the options market is drastically lower than in stocks, for that reason I don't run this strategy on the website yet.
Covered MDR Oct 50 Call at 0.15 from a 2.6 entry for a $245 gain per contract.
Covered PD Oct 95 Call at 0.15 from a 4.1 entry for a $395 gain per contract.
Covered PD Oct 95 Call at 0.15 from a 4.1 entry for a $395 gain per contract.
Exited the following today:
ESRX Oct 85 Call at 0.4 from an entry of 3 for $260 profit/contract
DO Oct 80 Call at 0.6 from an entry of 2.95 for $235 profit/contract
DVN Oct 65 Call at 1.1 from an entry of 2 for $90 profit/contract
ESRX Oct 85 Call at 0.4 from an entry of 3 for $260 profit/contract
DO Oct 80 Call at 0.6 from an entry of 2.95 for $235 profit/contract
DVN Oct 65 Call at 1.1 from an entry of 2 for $90 profit/contract
Quote from billp:
Is there a criteria for minimum $ amount per option contract before you are willing to sell it? For example, you will not sell any option that is less than $2? Thanks
Not a $ amount, but a yield. Lets say I am looking to sell a call with a $50 strike I would want to get at least $1.5 premium, which is a 3% (premium / strike) yield. The option must be OTM and 30-60 days till expiration.
I am currently focusing more on my stock trading so this thread might be on pause for a while as far as new entries go.
Quote from vhehn:
selling naked calls probably is one of the worst ways to make money. high risk low reward. if it works for you keep doing it.
this melt up has been a time period where selling naked calls could have been painful. i would say it is a good test of your strategy. so how is it going?