Since there has been some discussion about a private thread, I go on record opposing that. However, I should add that I have been income trading options since 1982. For the record that was the approximately beginning of income options trading. Still learning.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
corduroy
Active Member
I guess that answers our recent questions about this being sustainable long term.
AquaY
Member
He only said "I have been income trading options since 1982."
He never said "profitably" or "successfully"
J/K
Yeah, now I'm very interested to hear more from @pdwitt on this. I'm now dreaming of retirement within the next 2-5 years after already setting what was originally a very aggressive goal of retiring by 2030, so I'm eager to hear thoughts from anyone who's done this successfully long-term, as I'm sure many here are.
Fair enough. I did well for years until the crash of 1987. Since then, I will only say that I amHe only said "I have been income trading options since 1982."
He never said "profitably" or "successfully"
J/K
How could I do this for so long without being successful?He only said "I have been income trading options since 1982."
He never said "profitably" or "successfully"
J/K
Context is important here though. Some overhangs have been removed to an extent - China worries easing, Tesla continues to execute in the face of challenging supply environments, and their factories in Berlin and Texas seem primed for production start, with no signs of demand issues anywhere on the horizon. Model S / X production issues have either been or will also soon be resolved. We also could get some year-end window dressing dynamics at play here also if a whole bunch of portfolio managers think Q4 will be fantastic and want to get in on the action. Also, we may not have Elon on the call to throw cold water on guidance and performance.
I don't know - every now and then a quarter really is different, and this set-up is looking pretty bullish. But as always, macros are a big X-factor.
I believe the information on this thread is excellent for beginners and experienced traders. The only thing I would add is be cautious and conservative. Don't get too aggressive just because you have had recent successes.
Knightshade
Well-Known Member
InTheShadows
Active Member
Wouldn’t the problem be the long leg say 150-250 OTM, the OI and volume on those gets a bit thin.
I'm sure your wealth of experience could add some great insight on that point. I suppose the best way to recover from a massive loss is not to let it happen in the the first place...?
InTheShadows
Active Member
Haha. Yea my spreadsheet says in 10 years I could buy your Honda Jet off of you.
I don't really care. They are worth so little at that point, if I can't sell them to close, that's fine.
AquaY
Member
The same way I made a small fortune in one business venture I tried.
By starting with a large fortune.
Ba dum bumpThank you Ladies & Gents. I'm here all week. Please remember to tip your wait staff.
All kidding aside, I think it would be extremely valuable for people here if you'd tell us some of the big lessons you've learned over the last 40 years in trading options.
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I don't bother. But I tend to be more limited with my trading time and I haven't trouble getting fills either on the way in or out. I tend to close closer to 2/3rds profit than the last few pennies, and I don't sweat the pennies which as best I can tell is the only thing standing in the way of the big contract fills.
I'm still under 200 contracts on a ticket so I'm not bumping into that restriction.
I think we've settled on "no" to the private thread. There is enough valuable churn as new blood joins and wants to learn, as well as exposing the people here to new ideas, that this is what we've got. I do hope that we'll start collecting up links to resources that people have found valuable and adding them to the FAQ. For those that are inclined to read, that'll provide them with a concentrated collection of resources to read (vs. reading the whole thread).
I closed out my 640/700s for this week - around 70% profit. The overall result is excellent and I like to put things to bed when a good opportunity presents itself. If we get a reversal tomorrow then I'm ready to get back in - either for this week or next.
I've also opened some cc for this Friday; 820 strike for $6 premium. These match up exactly with some Dec 2021 500 strike calls that I want to close anyway, so I'm trying to nick a few extra $$ on the way to a sale. What I probably OUGHT to have done is just sell those calls and have the cash on hand, ready for selling an increased number of BPS. That's the purpose of getting these converted over to cash anyway. I rather suspect that I'm tripping over pennies and I shouldn't be bothering. If these are ITM on Friday or get deep enough ITM between now and then, then I'll be closing this net position (long Dec 500 strike calls with short 10/15 820 strike calls).
I've also opened some cc for this Friday; 820 strike for $6 premium. These match up exactly with some Dec 2021 500 strike calls that I want to close anyway, so I'm trying to nick a few extra $$ on the way to a sale. What I probably OUGHT to have done is just sell those calls and have the cash on hand, ready for selling an increased number of BPS. That's the purpose of getting these converted over to cash anyway. I rather suspect that I'm tripping over pennies and I shouldn't be bothering. If these are ITM on Friday or get deep enough ITM between now and then, then I'll be closing this net position (long Dec 500 strike calls with short 10/15 820 strike calls).
Indeed, I have those 40x Jan 24 c600's and yes, they've gone up 12.5% since I bought, so around $130k, which is nice, but if they were an extra $1.4M cash in my account I'm pretty certain I could make a hell of a lot more money... even more so given that the idea was to sell calls against them, but that's not an option right now with the garbage weekly premiums
Yes, there will be losses. Just be careful about upping the ante instead of continuing your basic plan. Continue to go for singles.
I wiped my account out in the 1987 crash by being stubborn and not accepting that the world had changed. By year end the market was back to where it was before the crash but I was not. Never fight the tape to the point you cannot continue the fight.The same way I made a small fortune in one business venture I tried.
By starting with a large fortune.
Thank you Ladies & Gents. I'm here all week. Please remember to tip your wait staff.
All kidding aside, I think it would be extremely valuable for people here if you'd tell us some of the big lessons you've learned over the last 40 years in trading options.
Since that event, I have become much more conservative and been much more successful. It is not rocket science.
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