juanmedina
Active Member
What a great day and **** day lol. I closed all the BCS that I opened today at a $100,458 lost still up $4k for the month . If it was Wednesday I think I would have waited out until Friday.
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I've gone inverted with short puts and calls (cash secured puts and covered calls). It worked out but it wasn't a choice I would make.Also, I was curious if @adiggs or anyone have experience with inverted strangles as a way to cut loss? I assume premium and IV are the biggest factor on whether crossing shorts ever makes sense to reduce max loss.
Curious, what were your BPS strikes and width?What a great day and **** day lol. I closed all the BPS that I opened today at a $100,458 lost still up $4k for the month . If it was Wednesday I think I would have waited out until Friday.
Ouch on the loss. :|What a great day and **** day lol. I closed all the BPS that I opened today at a $100,458 lost still up $4k for the month . If it was Wednesday I think I would have waited out until Friday.
I am curious- why did you lose money on BPS? Those have been quite profitable this month. If it was BCS I can understand losing money on those.What a great day and **** day lol. I closed all the BPS that I opened today at a $100,458 lost still up $4k for the month . If it was Wednesday I think I would have waited out until Friday.
I am curious- why did you lose money on BPS? Those have been quite profitable this month. If it was BCS I can understand losing money on those.
I thought about adding 3 more March 2022 600 calls on the open last night, thinking about not liking my call spread. I lost my nerve with the big open and missed a good profit on a small counterplay to my call spread. Still working hard to work off the losses on the call spread with bps trades. I'll do great if we blast past 1050, but I'd prefer we setup a new base around 1000 this week and then march up to 1200 over the next 2-3 months. The rip your face off rallies are too often followed by tear off the rest of your head drops. A steady rise should let 2022 rise on opening in Berlin and Austin, which we'd have thought the same in Shanghai this year.So, as I mentioned earlier, last friday, I placed a very aggressive position, 940/1000; but kept 1/2 account in reserve (that's a lot of reserve for my daredevil self).
Today, as it was going against me, I bought 950 longs on the way up while I thought about my strategy.... and sold them back at end of day since they were high priced and had a big profit. I then decided to sell BPS at same 940 strike to form a butterfly 880/940/940/1000 to cut risk another 14k.
My goal is to not add extra capital to the trade, or to be very very careful about doing so.
I'd really like to be able to execute a split roll and learn how to manage the position until it can win, which I think is still possible with time. I think the challenge is trying to figure out if a dip to 970 is in the cards.
While it may take time to cure the position with a split roll, I'm mindful that rolls MUST be done in one ticket. For instance, if I were to close the 940/1000 without simultaneously opening a new position the following week, I would lose access to the capital while placing the new position! The problem is you can't roll a condor in schwab.... you have to close out the BPS and then roll the BCS... I'm curious if anyone here has executed a split roll in a way that doesn't expose the loss and allows you to place the new strikes a little further away the following week? This seems to be the big benefit of the split roll no?
Also, I was curious if @adiggs or anyone have experience with inverted strangles as a way to cut loss? I assume premium and IV are the biggest factor on whether crossing shorts ever makes sense to reduce max loss.
Thanks for the input!
I’d much rather close out BCS at a loss than BPS at a loss.What a great day and **** day lol. I closed all the BCS that I opened today at a $100,458 lost still up $4k for the month . If it was Wednesday I think I would have waited out until Friday.
good news
I Still have a lot of 1100/1150 open for Friday. That would be another 7% gain the rest of the week. Those I might be tempted to roll out a week since at some point we have to level off/drop... Right? We are getting/have gotten to the point where BCS will become safe, and BPS will become dangerous. Might need to wait a few days/weeks to figure out when exactly.
What did I learn today:
I've learned that big moves on a Monday mean a $1 spread turns into a $10-20 spread even with the short leg OTM (later in the week the gap decreases if you aren't ITM with the short leg). Learned this the hard way - wow. When I looked on Friday for options expiring Friday, the gaps on $50 spreads were small if the SP was close to the short leg, while today they were huge even when we were still $20-40 OTM.
God witnessed us all boasting about massive BPS profits on the thread this last month, and said, I shall strike down upon thee with great vengeance and furious anger upon those who seek to profit from the languishing of the chosen stock. REPENT!It's quite insane. How the hell did we get the SP credit upgrade, MS target upgrade, Hertz news, and model price increases all on the same day?
Two main reasons for me:Rolled BCS 10/29 1000/1100 -> 11/5 1025/1150 -> 11/12 1040/1200 today. I'm curious why people choose to take the loss instead of just trying to roll (possibly forever)? Is it because it ties up the margin that could otherwise be used for weekly BPS?
Rolled BCS 10/29 1000/1100 -> 11/5 1025/1150 -> 11/12 1040/1200 today. I'm curious why people choose to take the loss instead of just trying to roll (possibly forever)? Is it because it ties up the margin that could otherwise be used for weekly BPS?
I did it to cut my losses. Today's news/gains could be the starting point of another big run up (or it could revert to 800 levels, no one knows). I had a 1100/1150 spread and was probably alright at the end of the week but didnt want to risk it with all the positive news for TSLA.Rolled BCS 10/29 1000/1100 -> 11/5 1025/1150 -> 11/12 1040/1200 today. I'm curious why people choose to take the loss instead of just trying to roll (possibly forever)? Is it because it ties up the margin that could otherwise be used for weekly BPS?
Here was my problem. My "expertise" was with naked puts. You can roll those forever, stay ITM without getting assigned as long as the cost of the put is greater than the strike price-stock price, and keep making money as you roll. I just learned today that this does not apply with spreads. Those that rolled had marginal improvement in the strike price, which works if the SP drops again soon, but won't work with a prolonged squeeze. Why can you not roll out forever with a call spread if the stock keeps climbing? Well, the gap for the 1000/1050 had grown to $20 or so with the SP around 1000 today. So you buy back the 1000 and sell the 1050 and go shopping for higher strikes and future dates (do a roll). But now, when you try to sell the same spread, the gap in the premiums for the future dates is narrow, so you still lose a lot of money if you get the same price for the short leg because the long leg you are buying costs so much more than the one you sold. I did not appreciate this, to the degree I do now, until today. I believe it is not as bad if it happens on a Thursday/Friday of expiration, but it happening on the Monday is the perfect storm. My goal for the future is to never sell a spread that can end up in the money with a 15% change in SP. I think I'm going to be less greedy in the future, and realize that the money I'm making on 50cent spreads is still much more than I was making when I was working. Maybe in the few weeks going into P&D numbers and ER where we always see support, I'll get a little closer with the Puts. But Calls - No.Rolled BCS 10/29 1000/1100 -> 11/5 1025/1150 -> 11/12 1040/1200 today. I'm curious why people choose to take the loss instead of just trying to roll (possibly forever)? Is it because it ties up the margin that could otherwise be used for weekly BPS?
Ouch on the loss. :|
From the thought process, analysis, and anything and everything else that went into the decision for entering the position, is there anything that you'd do differently the next time a similar situation or setup arises?
We can't do anything different about a situation that has already happened except deal with the consequences - but maybe there is something to be learned to help avoid that situation in the future?
These are the tough questions to answer, but they're also an opportunity for all of us to learn from your pain. I know that I appreciate any thoughts you have to share.