Selling puts

Overnight said:
And this is where it keeps getting fuzzy for me. I thought buying an option gives you the right, but not the obligation, to do what the option is. If I buy a put and it expires in the money, as you say, why do I HAVE to be assigned shares? And I thought buying a put gives you the right to sell shares, not own them?
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Yes, that is true for buying options, not for selling, when you sell and it is ITM, you get called or assigned even if it is ITM for a penny.
I do this for stocks/ETFs I absolutely do not mind owning...I sold FCX 19 puts for $2.52 for May 21 options that make me $252 regardless of what the stock does, the only problem would occur if it crashes to $15 overnight (which is not impossibly but not likely)
 
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riccja said:
I have been selling Weekly puts on Thursday that expire on friday the next day.

I have been using Barchart.com for my screener which is fine but it is not real time. But it gives me an estimate of some options to look at Thursday morning. Then I use TOS to look at the pricing once the market opens.

For some reason TOS does not include in the screen the stocks that come up in Barchart.

Its been working out well so far. I have had 208 trades....192 winners and 16 losers. That is a 92.31% win rate and a profit factor of 3.65.

The drawdown has been minimal, but, the sample size is small.


View attachment 244037
This is the graph so far.

My question is I have been looking for a better real time scanner. Does anyone have any ideas. Once I screen for my candidates, with my filters, I need something that shows the pricing in real time quick and easy. Also ideally the next morning being able to do a screen intra day with my criteria....which is at least 20% over strike price and no earnings, among other things.

Any help would be appreciated. I am a sports handicapper and worked on this while sports was down because of covid.

Rick
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When did this trading start ? When did you place the first trade of this sample ?
 
TimtheEnchanter said:
Yes, that is true for buying options, not for selling, when you sell and it is ITM, you get called or assigned even if it is ITM for a penny.
I do this for stocks/ETFs I absolutely do not mind owning...
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Ahh, ok, because you mentioned you saw them selling for .76, so I figured you meant buying them at that price. So you could sell 1 and get $76 premium, but would then be long the stock at...whatever price the stock settles at?
 
riccja said:
I have been selling Weekly puts on Thursday that expire on friday the next day.

I have been using Barchart.com for my screener which is fine but it is not real time. But it gives me an estimate of some options to look at Thursday morning. Then I use TOS to look at the pricing once the market opens.

For some reason TOS does not include in the screen the stocks that come up in Barchart.

Its been working out well so far. I have had 208 trades....192 winners and 16 losers. That is a 92.31% win rate and a profit factor of 3.65.

The drawdown has been minimal, but, the sample size is small.


View attachment 244037
This is the graph so far.

My question is I have been looking for a better real time scanner. Does anyone have any ideas. Once I screen for my candidates, with my filters, I need something that shows the pricing in real time quick and easy. Also ideally the next morning being able to do a screen intra day with my criteria....which is at least 20% over strike price and no earnings, among other things.

Any help would be appreciated. I am a sports handicapper and worked on this while sports was down because of covid.

Rick
More...
What broker are you using?
 
riccja said:
I have been selling Weekly puts on Thursday that expire on friday the next day.

I have been using Barchart.com for my screener which is fine but it is not real time. But it gives me an estimate of some options to look at Thursday morning. Then I use TOS to look at the pricing once the market opens.

For some reason TOS does not include in the screen the stocks that come up in Barchart.

Its been working out well so far. I have had 208 trades....192 winners and 16 losers. That is a 92.31% win rate and a profit factor of 3.65.

The drawdown has been minimal, but, the sample size is small.


View attachment 244037
This is the graph so far.

My question is I have been looking for a better real time scanner. Does anyone have any ideas. Once I screen for my candidates, with my filters, I need something that shows the pricing in real time quick and easy. Also ideally the next morning being able to do a screen intra day with my criteria....which is at least 20% over strike price and no earnings, among other things.

Any help would be appreciated. I am a sports handicapper and worked on this while sports was down because of covid.

Rick
More...
Are you in the insurance business? Selling unhedged options puts you in that business.
Do you think you are smarter than the market makers on the options exchange in obtaining good price fills?
 
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CALLumbus said:
When did this trading start ? When did you place the first trade of this sample ?
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I started in January of this year. I took some time to refine it. But most of my trades have an annualized return of at least 40% up to 400% But again the sample size is very small at now 210 trades. When I started the premiums were much wider and I had from 5 to 12 sales going on. Now I am lucky to find 4. This last week only 2 met my criteria. Both were easy winners. Yes the gain is small, but your making it in a day. Right now as you can see in the chart my avg gain per trade is 143.54.

But I am being very conservative in my position sizing. But lets see where I will be after 500 trades:)
 
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