let's discuss options trading.
what are good strategies?
Depends on your underlying assumptions about price direction.
Generally you sell rather than buy options and spreads.
Less is more usually
Know and understand your synthetics.
short put is the same as a covered call.
For lower priced stuff covered short straddles are pretty goat
at prices today you'd do very well with covered puts imo. Short Stock w/ Short put.
>>1229625
i like straddles especially for earnings season
Made 50% profit off apples earnings
buying a straddle for teslas earnings tomorrow
buy in the money puts
profit
>>1229883
bitch I made 500%
bought that 95 put for $20 but I had that shit pegged.
>>1229625
Make bigger gains by putting a lot into penny stocks
Watch for the pump and dumps
Shill your stock here in hopes many people buy it.
>>1229906
wait scratch that i made 100% profit. I had $800 but only used $400 to buy the straddle then sold the put for 845. Shouldve used the whole 800 but was playing it safe.
why does it matter that it was pegged didnt you just sell the contract?
>>1229909
cancer pls go
>>1229920
nah that one I bought. Lotto ticket tier. but I had a feeling.
perfect would have held it another day for 3000%
>>1229927
i missed out on tesla. i was going to buy some puts last week but pussied out. Cant decide on if i want to buy a strangle or just some puts. I cant afford to buy a straddle since i dont want to put more into my trading account so i have to make do with 1200
>>1229934
sell call spreads instead You can go 15$ wide on these.
if you have a specific target.
but point of control says price going up. I haven't run the numbers on the forms though
Best bet for this one is sell the straddle I don't see it moving without serious numbers.
ITT: Sophisticated gambling
>>1229949
im not approve for naked option writing. also i would not be prepared for that risk
im leaning more towards a straddle but i do think regardless of their earnings report the stock will drop just like it has been the past week
>>1229983
this is true
>>1229625
bump
its not often you see an options thread on biz and whenever i try to start one it never catches on
>>1229985
Looking at the breakeven you need tesla to break about 210 or 250 for the 2 day.
or if you're lucky enough to catch it both ways.
How many days out are you looking.
Next value points of control are 260 or 212 I don't think a straddle here is a buy with IV so high.
>>1229985
you can't do spreads? they're not great for earnings but If my assumption was that it was bombing down as you say.
I'd sell two 240 252.5 call spreads and buy one 215 put.
i wanna get into options but i dont get them
>>1229625
Here is an extremely dangerous strategy for you, OP. It is the siren song of active options traders and will blow you up from time to time. Have deep pockets if you use this strategy:
In oil and gas markets, sell futures options three months from expiry if they are priced at $500 (income to you).
The theory is that an option bringing $500 three months from its expiry will "time decay" to $-0-. Experienced, active option traders just can't resist such a trade. It's almost too easy they say, free money, low hanging fruit, etc...
The key to not blowing yourself up is to avoid mini Black Swan events....or to have the underlying commodity on hand. I saw a guy blow up using this strategy on March natural gas futures options. He made money consistently until a 25% rally in natural gas futures 2 days before expiry (a surprise arctic front) sent him into the real estate broker business.
>>1230019
tastytrade.com padawan
>>1230049
get on dough.com and complete the tutorial get the certificate you'll get at least level 2 w/ 5k in the account. Level 3 with a bit more simoleons
been selling low prob out of the money puts on stocks I wanted to buy. I sit and wait for a stock to tank to get exercised on. If it doesn't happen, the option expires, and I do it again and keep the money. Had to make some adjustments now as market dives lately but now I'm into it. Don't really care either way if I hold stocks now or not. I like free money.
>>1230562
Yep. I've been pretty much glued to this shit for the last few months. Learned a ton. Confidence growing. I'm still just paper trading and plan to continue for quite a while yet but what they're teaching is pretty powerful and empowering stuff. It's really helping me out with strategys that I think is going to serve me well.
>>1229883
same. january REKt me, but i've made some adjustments so if we're going off another cliff it shouldn't kill me
it does feel like gambling doesn't it
>>1230692
Some of it outright pretty much is. But options also offer you control, the ability to manage risk and reduce cost basis. They're just another tool to help you navigate the stock market along with a bunch of other derivatives.
I only sell options
