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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
I kept 5x Jan '25 +p180 awaiting a strong dip to sell... should have cut loose at $160s when they were worth 5k more. I want to exit these , free the shares, recover as much possible , it's loss reduction at best. This post blow off dip might be it for a while?
i SWEAR that if *** wins the election, i am going to move to Cana
wait, i'm already here
@Patrick66 writes:
"The theory of lots of little transactions is you can afford to be wrong ~30% of the time."
I've been wondering what % of my option trading resources I should trade with at a time to manage the occasion failed trades. Can anyone tell me where I can learn more about this??
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It really comes down to how much risk you are taking with each trade. If you are selling far OTM puts every week you have a very different risk profile than someone selling ITM puts once a month. My 30% number actually comes from one of the options video series based on selling options that have a 70% probability of expiring worthless.
You also need to define what a failure is; breaking even or losing double what you sold for are both failed trades, but they impact how you approach things.
In theory, I want 1.02^30 annual return, which gives me a safer benchmark to track to than targeting an equivalent 1.1%/week^52 weeks.
thenewguy1979
"The" Dog
moment of truth for TSLA seeing if it can break to 203.....everyone holding their breath.....and their short calls...
I'd think choosing what amount of my option trading money I allot to each trade is about optimizing to manage a given percent of likely losses of an average and/or maximum percent loss size on a given percent of trades, no?
Or Wicked's 207.30? Or Wicked's $212? I'm happy their posts are accurate, but...
How to read "Contract Trade Statistics"
First line
Red dominates=Bearish
Green dominates=Bullish
Second line
Red dominates=Bearish
Green dominates=Bullish
Third line
Ignore (don't know if buy or sell)
Fourth line
Green dominates=Bearish
Red dominates=Bullish
Fifth line
Green dominates=Bearish
Red dominates=Bullish
thenewguy1979
"The" Dog
The pump is too quick too fast without substance IMO.
Those Puts are getting cheaper.
Would be great to hear from our resident TA expert based on morning PA.
The 203 is just a guide until it is not. Seem to be holding below for now.
bmd00
Member
I think that's subwave 3 finished. 1 more spike left after some consolidation. Should be the exhaustion spike to follow with some divergence.
Everyone has a different way of looking at things, but my personal opinion is that I am playing a broad strategy and not just an isolated trade. I screw up when I get caught up in the trade rather than the continuum. Many of my trades are stupid as individual trades, but work as a whole.
I love laddering things, mostly on calendar, but some with strikes. I find I can handle 6 positions in my head on a given stock well; when I get over that I need to get out the graph paper to work through things. (The spreadsheet spits out a number, but doesn't give me the same confidence as looking at it on paper.)
I try to make sure that the next two weeks will not eat up all my cash if I get assigned, and adjust once assigned. Over-managing things makes me lose money.
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