When Selling Options, What Delta & Expiration Date Do YOU Like?

[BlueWaterSailor]

You're picking this up quickly

I must be hanging out with the right bunch of people, then...

 

[CannonTrading_Ilan]

^ Reading a simple trade related post like this is a breath of fresh air.



Do you mean "Selling 2 1650 calls"? Otherwise, this is just a debit spread.

YES!! Thank you for catching that and correcting. I will do the ratio spreads when I feel the spike up or down in prices is extreme and volatility / premium make sense.

 

[spindr0]

How long did it take to move from 100 to 95 and what were you doing during that time? What if you adjust when the stock reaches 98.25, a strike and a half in the money? Roll to 98.5 with the same expiration, which still has substantial time value. You give up part of the original premium, but still have a credit, depending on how much time has elapsed.

It's good advice but to get a credit, there has to be enough time decay in the intial put sold. It also requires that you have the opportunity to trade at $98.25 (gap?). Stocks and options don't always cooperate :->)

 

[zghorner]

Stocks and options don't always cooperate :->)

Im quite convinced that they never do.

 

[spindr0]

Im quite convinced that they never do.

I beg to differ. They always cooperate in the Simulator :->)

 

[traider]

YES!! Thank you for catching that and correcting. I will do the ratio spreads when I feel the spike up or down in prices is extreme and volatility / premium make sense.

Can you give an example of a ratio spread?

 

[CannonTrading_Ilan]

Can you give an example of a ratio spread?

buying 1 dec silver 18.50 call and selling 2 dec silver 19.50 calls ( can be 2 by 4 or 10x20 - the ratio is 1:2)
currently this spread is trading at a credit of approx. 5 cents or $250 per ratio spread.

this is just an example, not a reco....