This is the first options trading general only, I am interested in seeing how many options traders we have here and thus wanted to separate this general from /smg/ as what we want is to sell volatility and share high probability trades
>Brokers Tastytrade by far no 1 TD Ameritrade Everything else is probably shit
>Risk Management Not much to say, we can all YOLO and loose money. It is mathematically proven that with high number of occurrences we get closer to the mean average of our returns. Not more than 1-2% max loss per trade.
sometimes i do jaded lizzards, normally i close 2 weeks before earnings as that is when volatility starts contracting i think
Christopher Clark
Does IV crush contract that fast? I always thought it plummeted a day before earnings
William James
i guess it depends how you play it, i have burned myself enough times to only sell premium for the vast majority of cases. So I normally do 40-45 days to expiration and manage it at 20-21 days prior expiration
When i say manage its either take profits, take the loss , or roll if its naked. And yeah, volatility starts contracting about 1-2 weeks prior expiration normally
Kayden Collins
My current position: CHL Put $30 11/20 I bought these puts last week after the Executive Order banning investment in China Mobile after January 11, seeing the overall downtrend for CHL, the 'crackdown' on Chinese Tech, and seeing the AAA rated Chinese coal mining company go under. My logic was that all combined would create a run on the stock.. it has fallen every day since on both Hong Kong and US exchanges.. it is currently at $30.13 I get the feeling that it is going to finish on Friday at $30.01, and then on Monday get to $29.00, just to fuck my Put.. I am going to diamond hands these puts.. I have liked what I have seen this far.. if tonight it is red in Hong Kong I will be very happy.
Adam Ward
what was the IV when you bought the put ? puts are normally the best way to loose money. Especially when you buy on high IV / high IVR
Jaxson Scott
That makes sense, I bought a couple CVS calls for feb since I think it's gonna recover and they have earnings sometime around that point, I'll keep that in mind.
I've seen meme stocks like NIO and PLTR with crazy IV, I'm assuming that's not usually the IV you'd see with regular earnings and more on the hype right?
Brody Long
yeah good point, need to add it to the next general, ONLY trade liquid products, or you will either get assigned cause the other fucker cant close his position, or simply wont be able to take the fruits of your trade as the spread will fuck over any possible profit you might have made. Liquid products ONLY
I've heard horror stories on assignments haha, luckily I'm only buying calls since I have a 1k account, but good to know once I start trading spreads
I wish I bought yesterday, currently holding the DEC18 45C
Jordan Green
Got similar puts a day or two ago at 27.5, but december expiry
Asher Cruz
~30% IV very low (I was surprised how reasonably priced they were - $0.15 per) made no sense to me after the Executive Order came out I very well might have them expire worthless - the risk/reward seemed very worth it (still does.. just I think that MM may fuck the price temporarily just to fuck the puts expiring)
Gavin Sanders
It's based on vega
Alexander Butler
thats bullshit trust me, assignment should be welcomed if you go far out, as the extrinsic value of the option literally holds its value. Nobody is retarded enough to assign an option anywhere close before 2-3 days prior expiration or dividends. Assignment is a myth to keep normies out of the game
Noah Perry
12/18 45c You might get lucky. 4 weeks away. I jumped almost $4 today though so the stock might cool down.
Matthew Walker
i see activity on this thread is picking up, lets hold it up lads and keep the thread alive for future as well, im fuckin tired of smg, rest of biz is simply worse then /b
Angel Baker
coped some GE calls 12c jan and 15c march. yolo play.
Eli Allen
just sold my PLTR $12.50 11/20 Call that I bought back in October for $23. It was my first winning option.
anyway, right now I'm in on Cannabis for long-term, Hydrogen short term.
PLTR, NIO, RIOT, PLUG, FCEL are some of my plays right now.
Benjamin Lopez
Nice - are you up on them? There was more news yesterday (I think) regarding the SEC pushing to delist / ban companies, good for our position(s) I think by December you may also catch the market in general pulling back in combination with the deadline looming - I respect your position
Daniel Edwards
Probably gonna sell if the stock hits 40, and possibly roll it out into a further call
This is why I love options more than trading the stock, my degree comes in handy for once
Jordan Gonzalez
lets have some pols on our deltas shall we ? to see how many delta negative lads we have here, i saw bonds picking up , which is probably super bearish for stonks
Dominic Jenkins
It's definitely up but it's so low volume that it doesn't show as up.
It's one of the better trading communities out there, twitter, wsb, and stocktwits gave me stage four, the smaller the community the better.
Jonathan Allen
i would never benchmark against wsb or stocktwits, but still i think options themselves deserve a separate general
Aiden Howard
Lurker posting encouragement.
Landon Phillips
Agreed. WSB is fun though for the memes. We are lucky to even have SMG the rest of Zig Forums is full of shit coin. This would be a shit board without SMG
Jonathan Flores
100% agree, but we need to evole at some point as well welcome fren, feel free to ask
Adrian Garcia
Bump
John James
You’re literally asking day 1, retarded questions. You have dunning Kruger syndrome.
Josiah Hughes
I sold my pltr 7.5/10 and 8/10 calls extremely early because they maxed out so fast, I didn't want to roll them up. I should just be happy to 3x I guess.
wish i went for long position instead of buying it as an equity. itll probably hit 42 dollars in a month.
Eli Long
I threw out this question a few weeks back on /smg/ and no one had answer for me. I finally managed to discover the answer myself (thanks McGraw Hill) so I figured I'd share it here. Is Implied Volatility supposed to track with something tangible and predictable, or is it just a fudge factor? The answer is that it is a prediction of the price movement over the course of a year, mapped to a normal distribution. So, in other words, if the IV is 100% then after 1 year there is a 62% chance, 1 standard deviation, that the stock price will be different by 100%. Obviously this is not a perfect tool due to the fat tails of the actual distribution of price changes, as Black and Scholes discovered to their chagrin. Still, I like understanding what these percentages are really supposed to mean, and what you might expect your options to do over the lifetime of your contract. I'll note that you can't just divide by twelve to get a month's percentage distribution. Instead you have to divide it by the square root of 12. So, if your IV were 50%, you'd divide that by 3.5 and discover that your monthly contract's expected movement is 14.7% Anyone who understands IV better than I do should feel free to correct any mistakes I've made
Hudson Thomas
post your options flow screeners and strategies to improve the future threads
