Recent content by Zhelko Dimic

I don't see what's the problem in MM selling you and delivering stock at $350 strike price, and turning around and buying stock in the open market at $190. In the process they close long put position, and get their money back. I don't see why would they finance anyone for free, when there is...

I am afraid you will find that it's not only theta you need to worry about. Every put you sell, nets you cash in your account. Someone, in this case most likely MM's, have bought that put from you in their role of making markets, and if there is no willing third-party buyer, they're keeping it...

When I get to $0 margin, I sell 13 shares and buy 1 put, strike price $30-$40 under SP for a week or two ahead. Then I roll if I have to. This increases margin significantly 13 shares because IB enforces not more than 1:8 rule on combined options/stock combo trade. Combo is usually the only way...

Please type it in CAPITAL BOLD next time!

If I wanted to short TSLA without paying option premium, and still be protected against unlimited losses, I'd buy those. Market makers would sell them to me, and hedge by shorting shares in a 1:1. They end up with tiny premium + liquid cash that prob has some value...

I want to present alternatives to spreads and alternative to maximizing opportunity. We know that puts pay better than spreads PER UNIT, but much less overall PER MARGIN used, so I feel key is to think in terms of units. It helps me to think of overall exposure if SP drops 20 or 30% or 50%...

Scary to hear that...

Bear market bounces are rip your head off type of rallies... Having said that, there are 3 strong levels of resistance btw 900 and 1000. I think you like to live dangerous, right? ;)

I recommend this strategy for light leveraging at quite low risk. This will create 20K-100K at most, for a $1M-$2M portfolio. Advantage is low risk, "just a bit of extra return" to buy more shares, and very low or no maintenance. Main con is it would work poorly for 1. someone with itchy...

Not true in details. His initial margin is 35%, i.e. he gets $35 cash for $100 TSLA stock Currently, he could borrow only against 25% of the shares as per Tesla bylows. That could be changed. But he has a clause re borrowed 12.5B that he faces margin call if TSLA SP drops 40% from founding date...

I think I thought like you few years back - safe small gains are safer than additional small exposure. After lots of experience with both, I've changed my mind. I've lost few thousand shares at prices around $120-$130, and barely saved few more thousands around $300. So while I didn't really...

If you paid any attention to my posts, you'd see that I often advised against CCs, as these have been the worst decisions I've made, and where most of my opportunity loss has happened. As for puts, my advice/not-advice is to sell ONE put short. Should one do that(with 1500 shares), one uses...

With 1500 shares, if I were in your shoes, with todays drop, I'd probably sell ONE! $1000 put short for Dec'22 at current $224, and sleep rest of the year. You could add one more if we move much lower at better prices, lower strike. You're not going to learn that much, but low stress, decent...

Be aware that almost everyone eventually gets burnt quite badly. For me, it came three years after I started, but I feel it's almost better it happens early on, when stakes you put out are small. You will start small, right? And btw, spreads could lead to 100% loss of what you put on the line...

Last comment - at the risk of offending you, I'm not quite sure I made my point obvious, as you mentioned AGM, as to me that's a short-term! Hypothetical scenario - we explode to $1300 in a week or two; (one needs to suspend disbelief and check historically how many times this happened) Now...