Selling puts

Overnight said:
That's a good question...It seems like there is very little risk if you have only 24 hours to expiration. What's the catch?
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Actually its a two day trade, from Thursday morning until it expires on Friday. Occasionally you can find a trade on Friday morning when the market opens, but its rare. Depending on the option you make from .05 to .15 per contract. But that is typically at least 1/2% over two days. As long as you stay within certain parameters, at least a 15% difference between price and strike price and also no earnings, along with about 3 other variables I use, you are seeing what the profit factor is over 210 trades.
 
Glad it is working for you, but INO recently dropped from about 10.50, to 8.50 in 1 day. You could have taken in that $150 in prem, and be down approx $4,500 if that had been at expiry. Very lopsided r/r, even on a short time frame, will eventually get you. Just sayin...
 
We will see:) I am at 210 trades, Lets see where I am at on 500 trades. I have been handicapping sports online for over 20 years successfully. So, I am well aware of variance and failing methods. And the R/R is not lopsided when you consider the annualized ROR. Its actually pretty good. We will see:) But the intent of this was to get ideas on better real time scanners.
 
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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If you buy a put and it expires ITM, you end up selling the shares not buying them. I think @TimtheEnchanter is talking about shorting the puts.
 
Only found two trades this morning 11/20 JKS Puts with a strike price of 45. Sold 10@.15 And EOLS PUTS 11/20 Strike 2.00 20x.10
I had a basket of stock stocks to look at this morning. JKS was the only one that fell under my guidelines and EOLS the return was so high relative to risk I added that one also
 
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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Hi Rick
We have a delayed screener and a real-time scanner if you have Tradier Brokerage.
I can help you get set up. We have online tools with many of the features you need but also you can do this with our data API and automate everything.
 
riccja said:
Only found two trades this morning 11/20 JKS Puts with a strike price of 45. Sold 10@.15 And EOLS PUTS 11/20 Strike 2.00 20x.10
I had a basket of stock stocks to look at this morning. JKS was the only one that fell under my guidelines and EOLS the return was so high relative to risk I added that one also
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You may have dodged a bullet on EOLS, as a major decision on their botox product was due today but appears to have been delayed. Here are the links:
https://www.politico.com/news/2020/11/18/jeaveau-botox-us-ban-437823
https://www.usitc.gov/secretary/fed_reg_notices/337/337_1145_notice11192020sgl.pdf
 
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