Everything Options
- Thread starter Blazin
- Start date
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
And this is why I paperhanded my PLTR puts this morning at the top. Freed up about 10k is cash collateral for the retest I see coming today.
Blazin
Creative Title
- 6,395
- 33,549
Like watching a pot boil last few weeks sold monthly puts so not much to do, 60 trades in Feb expiration period. So far with less than two weeks to go I'm at 17 trades in the 3/19 exp period. Not much to do each day other than sit and wait and let premium decay. Obviously seeing the decline in tech I would have liked to have more cash to take advantage.
Once I have sold options for the month I try to disconnect a little to avoid over trading unless I had a chunk of cash I was still looking to put to work. Decay at work, I sold the QQQ $290 puts when QQQ was $333 and I sit just a little in the green today with QQQ at $310. So even a full correction the premium still just rapidly decaying. Had I waited two weeks I could have made a lot more on the same trade but I've learned it's better to keep cash working in the long haul than to sit waiting for pullbacks that could be take months. Given my cautious stance in mid Feb I probably should have sold them out two weeks instead of the 30 days to free up cash quicker to buy dips.
Once I have sold options for the month I try to disconnect a little to avoid over trading unless I had a chunk of cash I was still looking to put to work. Decay at work, I sold the QQQ $290 puts when QQQ was $333 and I sit just a little in the green today with QQQ at $310. So even a full correction the premium still just rapidly decaying. Had I waited two weeks I could have made a lot more on the same trade but I've learned it's better to keep cash working in the long haul than to sit waiting for pullbacks that could be take months. Given my cautious stance in mid Feb I probably should have sold them out two weeks instead of the 30 days to free up cash quicker to buy dips.
- 1
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
I only have two puts in the money and one of which I think will pop back up by the 19th. The other I am fine taking ownership of (EV Lidar company). Time decay the last week or two becomes magical. My rate of return on the PLTR puts wasn't great (I sold them a while back) and I turned that cash into more AAPL, NVDA and PYPL so in the long run I think it was the correct play. My KO put expires on Friday and Fri is also ex-div date so I plan to close out late Weds or early Thur so as not to get assigned early and get snaked on the 44 cent dividend. The time decay three days out is crushing.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Those are the same ones I closed out for about 30% profit so I could push the cash into AAPL, PYPL and NVDA at the lows. I think the 22 is more than safe and would have held them to expiry but I was out of cash and felt the return would be better long-term on the big names.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Pretty much resigned to being assigned on my VLDR puts next Friday. While anything is possible, they are about $4 in the money so my main hope is they can recover enough that I am in the black on cost basis counting my premium.
BTWN is out of the money at the moment with this mornings action and LAZR is just a hair in the money. CCIV I am looking solid.
BTWN is out of the money at the moment with this mornings action and LAZR is just a hair in the money. CCIV I am looking solid.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Closed out my KO calls for the requisite 3 cents. Now I hold until ex-div on Friday and bank another 44 cents. There is something calm and relaxing about writing options on low beta stocks.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
I almost want to be assigned on LAZR because I lost it to assignment on covered calls when it exploded up and I regret it as I like the company.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
I have closed out everything but my VLDR and BTWN puts that expire next week. For me there is too much volatility right now to target anything except my KO covered calls (which i roll weekly until I finally lose it). I am going to wait until later into next week before making any new moves. I am hoping all the gamma expiring on QQQ today will calm things down a bit.
As for targets I will probably keep playing CCIV and LAZR as they have as I think they both will move back upwards generally which is good for writing puts.
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Fogel
Keep an eye on the NIO April 22 strike puts if the EV/Tech sector gets smashed again today. on 3/5 when Nasdaq bottomed out, the $22 strike puts were selling for 1.10. Currently selling for 14-21 cents. If we see a sizable move back down I think the 22 strikes are a solid "safe" strike. $25 is almost as safe. The $22 for a dollar premium would be over 4% return on the cash collateral.- 1
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Quoting this for posterity
Fogel
. Why don't I ever listen to myself? I was out and then they dragged me back in. VLDR down 42% since I wrote that last set of puts. Moral of the story... never go back to the well too many times. Price when I wrote: $23.62. Current price: $13.68
I R dumb.
Fogel
. Why don't I ever listen to myself? I was out and then they dragged me back in. VLDR down 42% since I wrote that last set of puts. Moral of the story... never go back to the well too many times. Price when I wrote: $23.62. Current price: $13.68I R dumb.
- 1
Sanrith Descartes
Veteran of a thousand threadban wars
- 41,467
- 107,518
Rolled my VLDR puts up and out. Went from the $17.50 strike to the $20 strike and form 3/19 to 4/16. Made a net 2.90 a share profit on the roll. Give me six weeks for the price ot get back up and my cost basis actually went down to 15.97 on the added premium.
Fogel
Mr. Poopybutthole
- 12,154
- 45,151