Hey everyone! I’m 24. I’ve been learning options for the last four months.
I wouldn’t say I’m lost, but I need some new strategies.
I started with LEAPs. They seemed “safe” to me. But, the delta on them was so low and I bought so far out of the money they did nothing. I took a loss on these.
So, I switched to long strangles into earnings. I started this past Monday. I’ve done “ok” and haven’t lost money (barely though - After two days of losses I’m still up 2% on the $1,400 I started with).
Again, strangles looked relatively safe to me when I first got started. The way I saw it was that I was “protected” if the stock went up or down.
I’ve gotten very familiar with IV crush along the way though.
I've tried to be very disciplined. I've kept a trading journal (I attached a screenshot) and logged every trade, did not go too far OTM (other than my first day when I did not know better), etc.
My calls on salesforce went up 3,700% on an almost 15% out of the money call ($44 to $1,610). That was kind of a fluke though as most of my positions were much more closer to being in the money.
Without that Salesforce trade I’d be down considerably more.
Since Monday I went in and out of 25 strangles going into earnings. My success rate (meaning I either made a profit or broke even) has been 32%.
I’ve made “good” money (100% to 500% or more) on 3 of the strangles. I made 474% on URBN, 1,839% on CRM, and 208% on MDT.
My biggest mistakes/losers dollar wise were BBY (it was overbought going into earnings) and CLCT (it was a stock with very little volume).
One big challenge with Robinhood has been getting out of strangles fast enough. Thursday morning I was in 10 different strangles that reported that morning or Wednesday afternoon. Getting out of 20 legs was a giant mess and while most of the call legs were blown through and ITM. But, by the time I got out of everything by 9:37 or so I was down 21%.
Is it worth sticking with strangles if they are outside of earnings? What other strategies should I learn?
I wouldn’t say I’m lost, but I need some new strategies.
I started with LEAPs. They seemed “safe” to me. But, the delta on them was so low and I bought so far out of the money they did nothing. I took a loss on these.
So, I switched to long strangles into earnings. I started this past Monday. I’ve done “ok” and haven’t lost money (barely though - After two days of losses I’m still up 2% on the $1,400 I started with).
Again, strangles looked relatively safe to me when I first got started. The way I saw it was that I was “protected” if the stock went up or down.
I’ve gotten very familiar with IV crush along the way though.
I've tried to be very disciplined. I've kept a trading journal (I attached a screenshot) and logged every trade, did not go too far OTM (other than my first day when I did not know better), etc.
My calls on salesforce went up 3,700% on an almost 15% out of the money call ($44 to $1,610). That was kind of a fluke though as most of my positions were much more closer to being in the money.
Without that Salesforce trade I’d be down considerably more.
Since Monday I went in and out of 25 strangles going into earnings. My success rate (meaning I either made a profit or broke even) has been 32%.
I’ve made “good” money (100% to 500% or more) on 3 of the strangles. I made 474% on URBN, 1,839% on CRM, and 208% on MDT.
My biggest mistakes/losers dollar wise were BBY (it was overbought going into earnings) and CLCT (it was a stock with very little volume).
One big challenge with Robinhood has been getting out of strangles fast enough. Thursday morning I was in 10 different strangles that reported that morning or Wednesday afternoon. Getting out of 20 legs was a giant mess and while most of the call legs were blown through and ITM. But, by the time I got out of everything by 9:37 or so I was down 21%.
Is it worth sticking with strangles if they are outside of earnings? What other strategies should I learn?
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