Between this and the other board, I've posted well over a dozen trades in real time, and they are all working out just fine.... so far.
My OPTION TRADES..... part 2
- Thread starter Put_Master
- Start date
I'd like to get paid more myself. But given the low VIX environment we are in, this is the reality I must accept, until the market conditions change.
Given the choice of earning 15% investing in a solid company at a very good price, or earning nothing sitting in cash..... I gotta do what I gotta do.
Those Vegas strippers aren't going to feed themselves ya know.
Going out.
Read you later.
P.S.
And I'm sure diaoptions will have posted more useless garbage while I'm gone.
I'm not sure he understands this is a board for discussing and sharing trades. Not just for reposting everybody's posts with pictures attached.
May I suggest he visit other boards who appreciate his useless banterings and pictures.
Put_Master ...... There is nothing unique about your trades, you are selling puts - so what? Get over yourself.
I will give an example of how I trade.... Credit spreads.... YES. I am one of those uneducated, over-leveraged, JackAss Spread Traders.
I focus on broad indexes.. RUT, NDX, SPX, etc. I do not go looking for "big" premiums, I look for good trades on these... good available premium with deltas below 5... 3 or 4 is better.
Two NDX trades from this week.... 10 Contracts each
I did an NDX Call spread at 2950/2975 netted a credit of $680 and required a maintenance of $25K. A 2.7% return over 3 weeks.. or 20.6% annually.
Then I placed an NDX Put spread at 2325/2350, netting a credit of only $180. If placed by itself, it would have required a maintenance of another $25K, but because of the Put spread above, my maintenance on this was 0.
For this IC, I am getting about 3.4% over 3 weeks of 41% annually. My maximum exposure is $25K (less my premiums.
With NDX closing today at 2753.74, I am sitting at a short delta of 2.0 on the Call and 1.4 on the Put.... I look at adjusting when delta moves above 16-18 on the Put or 18-20 on the Call.
I am no expert on terminology or Greeks... just a newbie
I focus on broad indexes.. RUT, NDX, SPX, etc. I do not go looking for "big" premiums, I look for good trades on these... good available premium with deltas below 5... 3 or 4 is better.
Two NDX trades from this week.... 10 Contracts each
I did an NDX Call spread at 2950/2975 netted a credit of $680 and required a maintenance of $25K. A 2.7% return over 3 weeks.. or 20.6% annually.
Then I placed an NDX Put spread at 2325/2350, netting a credit of only $180. If placed by itself, it would have required a maintenance of another $25K, but because of the Put spread above, my maintenance on this was 0.
For this IC, I am getting about 3.4% over 3 weeks of 41% annually. My maximum exposure is $25K (less my premiums.
With NDX closing today at 2753.74, I am sitting at a short delta of 2.0 on the Call and 1.4 on the Put.... I look at adjusting when delta moves above 16-18 on the Put or 18-20 on the Call.
I am no expert on terminology or Greeks... just a newbie
Are we suppose to believe that you came to that conclusion "all by yourself", that I am selling puts? No way did a goof ball like you come to that conclusion by yourself.
Did Atticus feed you that info, via super secret email?
Perhaps you misunderstood him. You know your atticusese language skills are not up to par with the rest of the class.
Maybe I am selling puts.... and maybe I'm not???
Perhaps you should just stick with posting pictures, while the rest of us post and/or discuss option trades....... <<< unique ones >>>.
I think of it more in terms of being paid to pick the "correct time" to initiate each trade. Unfortunately we only know if we were right in hindsite.
I actually don't pick credits and % returns. I pick strikes.
If the stock happens to be trading close to a tech supported strike I like,... and I still have a little cushion relative to the trading volatility of the stock, then I make more money. But if there is a wider gap between where the stock trades and the strike I like, I make less money. Depends on whether I think the stock will continue dropping.
For example, several weeks ago I sold a $47.5 put on "K".
It's posted on this or the other thread.
The stock was actually trading ATM at the time.
But because I liked it's tech support, and because I liked the volatility stability of how "K" tends to trade, I sold the put with the stock ATM.
Perhaps even slightly ITM.
Bottom line,... if I think the stock may continue trending down I'll wait for a higher credit. If not, I'd rather not risk missing an income generating trade of 13 - 16%, because I got greedy.
Theta waits for neither man nor beast. If I missed the trade, and didn't have another opportunity for another week or 2, that's a week or 2 of lost theta, which is never coming back.