@Realist wrote:Let's just say you have bigger balls than I have to trade options.
You can trade 3x etfs, and I still consider that as a safer alternative. Just because you have a great run, doesn't mean it's always going to be a great run. Options magnifies everything, both good and bad.
Yeah, that's why my plan is to only wheel stocks I'm already long term on.
I don't mind holding more Tesla bags.🙂
@Im-back wrote:Only got 1/3 called. But it still stung. Still stings. Big taxable gain and lost opportunity.
Not worried about tax in my IRA, just loss of the upside opportunity, which I definitely do not want to lose.
@Im-back,@Blender
Ok, 2nd week of options trading done.
Week 1: Made a whole $73 off a way out of the money call option on 1 TSLA contract.
Week 2: Net about $1500 after more way out of the money TSLA contracts, and some PLTR and HOOD puts, and taking a loss on a $360 call on 1 TSLA contract, that I rolled up and out to $375 on Wed, then just bought back late Fri just before the shares definitely would have been called away.
I would have been ok with them being called away if it had been shares in my IRA, but I was dumb and did a call closer to the money on shares in my CMA account, so capital gains tax would have been huge. I really didn't think there would be any significant action, maybe even a small pull back.
Bad timing on a FSD release and demonstration that convinced BoA and others to go bullish.
Even Craig Irwin flipped to bullish and changed his price target from $85 to $380 this week, who's next, Gordon "The 🤡" Johnson?🤣
I won't be risking any of my TSLA shares again for a while!
Week 3: Depending on what it looks like on Monday, I plan to do a small(ish) scale dance with the MSTR devil next week and buy 100 shares, sell a call on them at $10-20 higher, and also sell a put on MSTR for like $30 below the stock price at the time.
I'm on forced staycationn next week to burn unused vacation time, so will be able to closely monitor it.
I'll also be spending a lot of time learning more about reading the tea leaves...er, stock charts, what to look for, etc..
Every time I start to get a handle on one concept, there are 20 other things I need to learn about that I didn't even know where things before.
Sifting through the mountain of options trading bull💩 to find the good information on the internet is a challenge all its own too.
The "Kamikazi Cash" YouTube channel has been keeping me grounded in how NOT to do optoins trading.
@markbeiser wrote:
@Im-back wrote:If your feelin extra sporty I suggest you start playing with MSTR options. Now that SEC has started allowing bitcoin options it like gasoline has been thrown on MSTR. Me, I'm too faint of heart.
I don't know if I should thank you or curse you for bringing up MSTR, but I've been looking into it all day and have half talked myself into YOLOing a 1 week put for 1 contract of it.
The premiums, for puts way below and calls way above the strike price are just crazy...
Learn about delta, vanna, and peak negative and positive exposures. PC ratio is really not a great tool in itself. If the ratio is skewed tho however, you can expect the MM to balance that out
@markbeiser wrote:@Im-back,@Blender
Ok, 2nd week of options trading done.
Week 1: Made a whole $73 off a way out of the money call option on 1 TSLA contract.
Week 2: Net about $1500 after more way out of the money TSLA contracts, and some PLTR and HOOD puts, and taking a loss on a $360 call on 1 TSLA contract, that I rolled up and out to $375 on Wed, then just bought back late Fri just before the shares definitely would have been called away.
I would have been ok with them being called away if it had been shares in my IRA, but I was dumb and did a call closer to the money on shares in my CMA account, so capital gains tax would have been huge. I really didn't think there would be any significant action, maybe even a small pull back.
Bad timing on a FSD release and demonstration that convinced BoA and others to go bullish.
Even Craig Irwin flipped to bullish and changed his price target from $85 to $380 this week, who's next, Gordon "The 🤡" Johnson?🤣
I won't be risking any of my TSLA shares again for a while!
Week 3: Depending on what it looks like on Monday, I plan to do a small(ish) scale dance with the MSTR devil next week and buy 100 shares, sell a call on them at $10-20 higher, and also sell a put on MSTR for like $30 below the stock price at the time.
I'm on forced staycationn next week to burn unused vacation time, so will be able to closely monitor it.
I'll also be spending a lot of time learning more about reading the tea leaves...er, stock charts, what to look for, etc..
Every time I start to get a handle on one concept, there are 20 other things I need to learn about that I didn't even know where things before.
Sifting through the mountain of options trading bull💩 to find the good information on the internet is a challenge all its own too.
The "Kamikazi Cash" YouTube channel has been keeping me grounded in how NOT to do optoins trading.
I had a reply to all of your points, with education and clarifying some things you wrote, then it logged me out and it was gone
Tell me the dates of the trade, strike price, and expiry date of that con you rolled and WHY you did that.
Are you opening single options or spreads? How you wrote some of that makes me think you might be confused about assingments/ expirations as well as lack knowledge about the greeks. Not a jab, I wanna help
@Im-back wrote:
@markbeiser wrote:@Im-back,@Blender
Ok, 2nd week of options trading done.
Week 1: Made a whole $73 off a way out of the money call option on 1 TSLA contract.
Week 2: Net about $1500 after more way out of the money TSLA contracts, and some PLTR and HOOD puts, and taking a loss on a $360 call on 1 TSLA contract, that I rolled up and out to $375 on Wed, then just bought back late Fri just before the shares definitely would have been called away.
I would have been ok with them being called away if it had been shares in my IRA, but I was dumb and did a call closer to the money on shares in my CMA account, so capital gains tax would have been huge. I really didn't think there would be any significant action, maybe even a small pull back.
Bad timing on a FSD release and demonstration that convinced BoA and others to go bullish.
Even Craig Irwin flipped to bullish and changed his price target from $85 to $380 this week, who's next, Gordon "The 🤡" Johnson?🤣
I won't be risking any of my TSLA shares again for a while!
Week 3: Depending on what it looks like on Monday, I plan to do a small(ish) scale dance with the MSTR devil next week and buy 100 shares, sell a call on them at $10-20 higher, and also sell a put on MSTR for like $30 below the stock price at the time.
I'm on forced staycationn next week to burn unused vacation time, so will be able to closely monitor it.
I'll also be spending a lot of time learning more about reading the tea leaves...er, stock charts, what to look for, etc..
Every time I start to get a handle on one concept, there are 20 other things I need to learn about that I didn't even know where things before.
Sifting through the mountain of options trading bull💩 to find the good information on the internet is a challenge all its own too.
The "Kamikazi Cash" YouTube channel has been keeping me grounded in how NOT to do optoins trading.How'd you do with MSTR?
I dont see an A+ technical set up in MSTR this week. Might be a ton of volatility this week, hence the IV and elevated premiums. Weeklies would not be the ideal trade here for new guys
@markbeiser wrote:
@Im-back wrote:A couple years ago I felt pretty smart and started selling covered call contracts. Eight months later I had nine contracts called for a company that everyone would recognize. Shortly after I realized even focusing full time, I can't compete against the institutional investors. Shortly after, I stopped trading options and haven't looked back.
If your feelin extra sporty I suggest you start playing with MSTR options. Now that SEC has started allowing bitcoin options it like gasoline has been thrown on MSTR. Me, I'm too faint of heart.
Yeah, I fully accept that there is no way I can compete with proffessional investors, not now or ever, especially not institutional ones who can and do manipulate markets in their favor.
I'm just after the table scraps for the most part.
Your story about getting all your shares called away is the kind of thing I'm considdering about my Tesla positions, I don't actually want to lose them, so I may end up only playing with 1 call and 1 put at a time.
I looked at MSTR, holly cow the premiums look tempting, but it is the kind of stock that can wreck you in a flash, so no, just no.
This happens when you sell spreads or multi leg options. You need shares of the underlying to open that trade. Selling calls and puts requires more knowledge and an understanding of charts. Buying them is much simpler: stock going up or down.
But you can benefit from buying single options on TSLA. It moves a lot in both directions. Single options are tradeable and most traders dont exercise. If youre trading these in a tax advantaged account you dont need to worry about short term gain tax. Buying and exercising so that you own those shares makes sense for a ROTH, but likely means youre buying ITM strikes so you have to have a general bias to where the price will be at expiry
@markbeiser wrote:
@FeeBear wrote:Now if you decided not to heed my warning above dear god stick simple strategy like sell calls or selling put. In these cases (Selling Calls, you have 100 shares and you are basically betting your stock doesn't go past your strike price or selling puts (Where you are hoping a stock price doesn't go below a certain price where you would be obilgated to buy 100 share/Per Option.) Look up the wheel strategy and all this will make more sense. Good Luck
I'm sticking to collecting relative chump change selling out of the money covered calls on my Tesla stock for now, as it is the only thing I have more than 100 shares of.
I'm looking for something MUCH cheaper and less volatile to do a wheel strategy with to get a feel for things.
HIMS and PYPL have good set ups heading into the week