Any option traders?

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unbiased
Posts: 52
Joined: Sat Apr 25, 2020 5:46 pm

Re: Any option traders?

Post by unbiased »

I sometimes sell puts but regularly do the "wheel" on TLT -- sell covered calls, if called, sell puts. Currently selling puts on TLT after the recent spike called my shares away. I've only been doing this a year so still consider myself a "novice." I like the yield, but recognize the capital appreciation limits and it does reduce the ability of a TLT spike to offset stock volatility.

Worst/Best experience so far -- selling a put on TSLA right before the March crash. Was convinced I would lose buckets. Oddly, kept rolling out and down and somehow ultimately made money.
Helo80
Posts: 1767
Joined: Sat Apr 29, 2017 8:47 pm

Re: Any option traders?

Post by Helo80 »

There's not much talk on this forum of options trading, but it would be well worth a dedicated thread for it.
rockstar
Posts: 772
Joined: Mon Feb 03, 2020 6:51 pm

Re: Any option traders?

Post by rockstar »

I have written cover calls on positions back when I had to pay commissions. I would write the cover call at the price I wanted to sell. If the price wasn't reached, I kept the premium and stock. The last time I did this was on USO back in 2016.
unbiased
Posts: 52
Joined: Sat Apr 25, 2020 5:46 pm

Re: Any option traders?

Post by unbiased »

Hey for those options traders, anyone come up with a better "option" than "roll out and down" on a deep in-the-money short put? A trade went against me and while I'm OK now, I haven't located any other alternatives besides a rollout to unwind an ITM short put (besides getting assigned the shares). Maybe the smart traders here have used other techniques.
bondsr4me
Posts: 1525
Joined: Fri Oct 18, 2013 7:08 am

Re: Any option traders?

Post by bondsr4me »

I occasionally use write covered calls.
I also write cash covered puts on stocks that I am OK with owning IF I they are put to me.
bling
Posts: 587
Joined: Sat Jan 21, 2012 12:49 pm

Re: Any option traders?

Post by bling »

bondsr4me wrote: Wed Sep 09, 2020 8:02 am I occasionally use write covered calls.
I also write cash covered puts on stocks that I am OK with owning IF I they are put to me.
do you consider that cash to be part of your fixed income allocation or is it set aside purely for options trading?
bondsr4me
Posts: 1525
Joined: Fri Oct 18, 2013 7:08 am

Re: Any option traders?

Post by bondsr4me »

my "cash" is my dry powder for opportunities...whether it be stocks or options.
I go where I see opportunity.
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firebirdparts
Posts: 1801
Joined: Thu Jun 13, 2019 4:21 pm

Re: Any option traders?

Post by firebirdparts »

techieguy wrote: Thu Aug 27, 2020 6:46 pm
Do you have any recommendations for resources for learning more about options trading? I’m curious from an educational standpoint but don’t want to put any “play” money on the line until I learn the ropes.

Thanks
My accounts are with Fidelity. They have periodically a series of webinars about "how to" trade options. I'm a fundamentalist, and I started learning the jargon, one position a day, and I kind of tried trading as I understood it. For this I used the Fidelity options strategy guide. I haven't really finished with the Fidelity options guide, as at some point the things you can do get pretty bewildering.

I read some on option 'greeks" and I decided it might help to pay money for "options-101" class on newtraderu.com; I think it was pretty informative. It has no visual aids, so it could be improved, but it's useful. It introduced me to the idea that a set of conditions that you see would direct you to take a certain position. For a dumb example, if implied volatility (IV) is high generally you'd rather sell premium than buy it. The class is pretty good at explaining the way options prices move based on "the greeks".

I do not really appreciate trading the options themselves. I've done it a little. What I am missing here is the ability to look at the situation and predict how IV should change. As earnings season went by I watched this, but I lacked the experienced to really appreciate it. Philosophically I'm not trying to predict whether the underlying will go up or down, but that is the normal way people trade options. I am trying to figure out strategies that are pretty 'market neutral'.

I am biased in that I prefer to sell premium. I started trading with NO MARGIN and so that means I can sell a cash secured put but I can't sell a call unless it's covered. This has restrained me at an appropriate level for now.

some other websites are optionseducation.org, optionsprofitcalculator.com. Lots of people like tastytrade but I haven't looked at it. Each of the brokers has a tool, but I don't use them. You sort of need a tool to "scan" for options that might be "more interesting" based on some criteria that you like.
A fool and your money are soon partners
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