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.
If you are bearish on XHB, you might consider a bearish strategy in it. XHB’s 17% IV rank points out that its IV is relatively low, and that debit spreads could make attractive strategies. If you think XHB might drop back down in the next few weeks, the long put vertical that’s short the 56 put and long the 58 put in the Dec weekly expiration with 42 DTE is a bearish strategy that has a 65% prob of making 50% of its max potential profit before expiry and that generates $.07 of positive daily theta.
Jonathan Parker
redpill me on xhb
Brandon Martin
thank you for posting the tastytrade link, I'll check it out since I'm a noob. what do you guys think about the wheel strategy?
Cameron Perez
Two things that have been surging of late are housing starts and coronavirus. The former is due to cheap rates luring buyers, and the latter is due to heavy coughing at real estate closings. It’s just the natural reaction when agreeing to take on a huge slug of debt. Of course, XHB, the ETF that tracks homebuilding stocks, has been rallying, too. That’s why if you think the coronavirus might spook buyers and put a lid on XHB, you might consider a bearish strategy in it.
Hudson Edwards
Perhaps i should include some affiliate link to collect smth from you lads, but anyway, i am only selling premium if thats what you are asking
Tyler Powell
do you work at XHB? careful this can be considered insider info
Blake Gomez
Please explain options to me like im a child. I would love to get into this but I am not sure on the process. I have skimmed various sites to gain a little bit on info on how it works, but if you could explain to me in your own words, I would appreciate it.
Sincerely young grasshopper
Brandon Davis
not even close, im a shipping guy
Christian Gutierrez
I still don't get how far otm you should go when wheeling. You aren't supposed to ever roll a wheel option, and just sneak by as close as possible to assignment and then let them expire worthless.
Charles Adams
GOD FUCKING DAMMIT, I finally sold gme at 11.9 and shorted and now its staying at 11.9 as the floor, its gonna go down right anons
Adrian Campbell
options is insurance for your positions, you buy and you sell premium which is based on the black scholes model (subject to volatility)
Expensive options = a lot of fear in the market = you sell options
Cheap options = little fear = you should buy premium / long volatility
Its a bit hard to explain in a more simplistic way i think
16 - 20 delta is your answer, your rule of thumb, your golden rule
Jaxson Hall
What about that seems like any insider info?
Brody Smith
You mean .2 off of .5? or do you literally mean .2 and .8
Jayden Murphy
i dont understand the question, 16 delta is the optimum selling option on high IV, what is 0,2 ?
Julian Barnes
Well wheel goes both ways you need to know the delta for selling covered puts as well, which makes saying 16-20 delta meaningless, because it could mean off of 50 delta in either direction.
Noah Hall
I see, i just normally suggest those delta for either naked selling or verticals as those are my primarily suggested strategies. I also tend to suggest to be 45 DTE and manage your positions at 21 days in order to avoid gamma exposure
Matthew Watson
What strat do you guys use to profit off spy?
Carson Morgan
vertical spreads and iron condors, that shit literally doesnt move 80% of the time at all , the distribution itself is leptokurtic
Evan Stewart
I have a scalping bot (only trade crypto) that I wrote that is doing really well but the March crash has me traumatized (I made a bit of money that day but it was dumb luck and things could have been devastating). I can tune how aggressive/risk averse I want to be but if there is say a 15% candle drop I can lose a lot. How can I use options to help me?
Say My bot makes about 1%-2%/week while being aggressive, should I buy OTM put/calls using say 0.5% of invested/week to protect against such drops? That would be like 25%/year for insurance although It could be made back with one mega-candle which is somewhat common in crypto. Is there a cheaper way though?
Again I am interested in crypto options to protect against flash crashes mainly (but flash pumps as well). I guess some direction to start would help. Is there any software that's good for backtesting crypto-options or am I going to have to write this one myself?
Ian Perez
Deribit options are p2p, liquidity is shit, and i have not had any positive experience as you cannot build simultaneously any position on deribit, but its by far better than bitmex. Options on BTC is still shit i think, im waiting tastyworks to include btc maybe in the future
Evan Nelson
>black scholes model Explain why algos always have wide ranges on lower volume options. Really annoying when i have to move in their favor both ways.
Liam Bennett
If you can't afford spreads, what's the best play? So far I've just been buying OTM calls and getting lucky
Ayden Cox
aren't wider bid/ask spreads common when volume is low on anything, options or not?
Julian Russell
low volume exposes securities to higher volatility if something comes up.
Samuel Roberts
Pure luck , but I'm happy u made money fren Yes that is correct
Camden Cook
You could buy puts to lock in your gains.
Ryan Morales
Market makers are what they are , there are many reasons to avoid low liquidity markets especially options market where u need to be able to dump them before expiration
Ayden Brooks
just lost 7k on tsla call what to do user?
Michael Jenkins
oh nvm you mentioned that already
You can always do things the old fashion way and set up price alerts so you can turn it off in an emergency.
