I told you guys...closing positions for a loss is for fools.

[wxytrader]

You dabble with 100 contracts??
As in short??
On what??

I've traded as much as (long) 300 contracts on a 0-3 dte. Kind of like reddit style but I didn't have a 10M account so was not able to hold the position like I would like to...with a 10M account a 60k loss is like losing $6000 with a 1M account, $600 with a 100k account or $60 with a 10k account.

 

[taowave]

Thats reasonable..
Appears you risk 60 basis points.
Do you trade with a stop,which could enable you to trade bigger,or do you simply risk 60 Bps and hold to expiration??

I've traded as much as (long) 300 contracts on a 0-3 dte. Kind of like reddit style but I didn't have a 10M account so was not able to hold the position like I would like to...with a 10M account a 60k loss is like losing $6000 with a 1M account, $600 with a 100k account or $60 with a 10k account.

 

[TrailerParkTed]

I've traded as much as (long) 300 contracts on a 0-3 dte. Kind of like reddit style but I didn't have a 10M account so was not able to hold the position like I would like to...with a 10M account a 60k loss is like losing $6000 with a 1M account, $600 with a 100k account or $60 with a 10k account.

I trade with a kid who buys 1500-2000 of those $.10-$.50 0DTEs. It’s fun to watch, on Friday he made more money on QQQ puts than should be legal!

 

[NoahA]

I trade with a kid who buys 1500-2000 of those $.10-$.50 0DTEs. It’s fun to watch, on Friday he made more money on QQQ puts than should be legal!

Has he been buying puts for months though? It seems like the lottery ticket finally paid off. What's his win rate like?

 

[ironchef]

Wx actually knows better than he lets on,and to his credit,while he appears clueless as to managing risk,he is smart enough to only sell covered puts. At the end of the day,thats how he manages risk. And,if you have traded long enough,that approach will work till it doesnt,but it wont be financial Armageddon..

Wx real problem is he appears unteachable,and trades so conservatively that he will never feel real pain when he's wrong. He just sold a put or 2 into a 35% correction and learned nothing. Thats what happens when you dont take real pain.

Most learn more from their losses than their gains,assuming they dont repeat them and go the way of the dinosaur.

Selling cash secured puts and closing your eyes is a hobby at best..

Teach him how to trade butterflies or spreads instead.

 

[wxytrader]

I trade with a kid who buys 1500-2000 of those $.10-$.50 0DTEs. It’s fun to watch, on Friday he made more money on QQQ puts than should be legal!

I avoid trading large lots because I feel the algos get triggered and they will come after your position.

 

[taowave]

You have quite the imagination

I avoid trading large lots because I feel the algos get triggered and they will come a fter your position.

 

[wxytrader]

Thats reasonable..
Appears you risk 60 basis points.
Do you trade with a stop,which could enable you to trade bigger,or do you simply risk 60 Bps and hold to expiration??

Well stops would limit me to day trading...they are useless overnight or weekends for stock options.

 

[wxytrader]

You have quite the imagination

That's why I take these reddit posts with a grain of salt...if I were to put 800 contracts on a long option I could almost guarantee that price would liquidate my position...the candle would be the equivalent to a rogue wave in the ocean taking out a ship.

 

[taowave]

The same could be said for stocks by your analogy.

All stops are useless when the market isnt open...

Do you also not use profit stops because the market isn't open on weekends or overnight?

Fwiw,I could see why you wouldn't stop yourself out on a single leg long position or if you are an investor.

But I would run backtests

Well stops would limit me to day trading...they are useless overnight or weekends for stock options.