Wiki Selling TSLA Options - Be the House

[adiggs]

Very helpful. I must be dense or missing something. I don't understand how this strategy works in real life. If the SP keeps increasing, It seems to me that you would always be closing out the CC at a loss. If you are using the premiums collected to purchase additional shares, where does the cash come from to buy back the CC?

By specifically using the Roll transaction type (rather than a buy-to-close transaction plus a sell-to-open transaction). The sell to open generates the cash used in the buy to close transaction. The net credit (or debit - but only roll for a credit ) is what's left over after paying out on the closing side and taking in on the opening side.

The key here, I believe and am testing for myself right now, is don't close too early when you go ITM. In my case, I have a 760c expiring this week. It still has $9-13 in time value today, so even when it was $12 ITM earlier this morning I never considered rolling. There WON'T be an early assignment when there is that much time value remaining (not a guarantee, but I'll take 6 9's or whatever likelihood of no assignment). And for this roll purpose I'm sort of indifferent (at least in this particular position where I'm trying this out - still learning though) to being $10 or $40 ITM at expiration.

If time value is ~0 when I roll, then I'll have a net credit available when I roll out (a week, a month, whatever) if I leave the strike the same. I can then trade in some of that net credit for a higher / better strike (this is all part of the decision around WHICH position I'm rolling into).


So current example, and something I wanted to post as well. That 760 call for this Friday expiration - it still has ~$10 in time value. Therefore too early to roll. I'll keep an eye on it tomorrow, but my best guess right now is that option is going into Friday. What I'm watching is the time value on the option (mostly anyway). That time value WILL got to 0 at expiration on Friday; somewhere close to that (say $0.50?) I'll roll, whether it's ITM or OTM at that point. I'll roll out to the next week option, and I'll pick a new expiration based on all of the usual stuff that goes into picking a position.

If I'm far enough ITM, then I'll be picking a strike that is closer but possibly still deeply ITM.

The real point today is that I had as much internal angst this morning when I was $10 ITM as I had yesterday when I was $25 OTM, as I do right now ATM. Which is to say - none. Partly that is the size of the position, but mostly is that I believe I can roll this position to avoid selling the shares (if I want to), and keep the weekly credits going at a 'high' level (for the outcomes I seek), potentially indefinitely.


This particular position - I started it on Monday by purchasing 100 shares for $735. That's the shares that provide the cover to the 760 call. My worst case outcome on this position to the upside is that I collected a ~$9 premium plus it goes to expiration and I earn another $25 on the buy-735 / sell-760.

Yes, I would have made more by just buy and hold (assuming the shares go past $770ish). But this is cash that I don't want to buy and hold with - I already have enough shares and in my case, I'm more concerned with cash flow / income than I am with maximizing growth.

And most importantly for my situation, I have downside protection on these shares I bought at $735 - we didn't know on Monday we were going to see $770 later in the week. If the shares had been flat at $735 (or down) then I would be ahead by the $9 premium and I would be able to sell another call for next week using the same backing shares.

I like being paid to learn!


If this isn't yet making sense, then two ideas given that you want to continue at all :
1) keep asking questions (and reading, and doing other study yourself)
2) Setup a minimum position to start learning what those mechanics look like.

In my case, my first one of these , back in April when I started, was to sell the $200 put when shares were at $420 or so. I think it was 2 weeks out - maybe a month. And pre-split numbers too! I wanted to be REALLY far OTM on that first trade. The second trade was the $175 put with shares at $400 (even further OTM).

The real purpose was to start learning, and at least for me - I need some skin in the game to lock in the education. I made money on those two positions (I like being paid to learn).

I also intentionally setup small positions to try out new ideas (new to me anyway) to gain some experience with how these trades evolve, how to set them up, how to close them. That's what this current position is - really small, but hoping to demonstrate to myself that I can be much closer ITM than I have been, thereby earning a higher weekly premium, and still doing it 'safely' (for my context).

 

[adiggs]

Very helpful. I must be dense or missing something. I don't understand how this strategy works in real life. If the SP keeps increasing, It seems to me that you would always be closing out the CC at a loss. If you are using the premiums collected to purchase additional shares, where does the cash come from to buy back the CC?

Oh - and yes, I've been in a situation where I definitely didn't have the cash to 'escape' from a CC that was ITM. The roll transaction made it possible to move to a new covered call that I liked better.

 

[LN1_Casey]

I took the opportunity to close out my covered call ($800 Jan8) while it was briefly back in the green. Going to wait and see how the market reacts on Friday before entering in another one. Given the chaos recently, with the upgrades and then the riot, the market can do any number of things between now and then.

 

[bxr140]

Interesting. So this works for capital that you having sitting around or recently purchased shares because of taxes? or are you selling those against cheap call options? I am somewhat confused. The shares that I have in my after tax account I had them for years so taxes would be a problem.

Generally it is unallocated funds in my retirement account but, for instance, I went mad all-in on that ZM play across all my accounts (including margin accounts) because I felt it was such a strong position and I had a bunch of capital. (I usually do FWIW, as I'm a big proponent of exposure = risk, and thus I don't often have huge positions held for long periods of time). Now, that play was a little off brand for me as usually in my margin accounts my volatility plays will be built on spreads, bit that's what I was feeling at the time.

As an example of more normal for me, I opened a truckload of TSLA Iron Condors on Monday for this Friday that are quite safe and returning $60 on $5k of margin, or ~1.2% in 5 trading days.

Anyway, you DEFINITELY do NOT want to sell an ITM call against shares that you want to keep in a play similar to what I described. The whole point is to let the shares go; unless the position goes totally sideways that's the inevitable conclusion. Sometimes if volatility is still high I'll roll instead of closing, either to pick up another cycle of time value or bump up the strike to realize "less loss" (= more profit), but in the end self-execution of the call inevitably leads me to sell the shares.

 

[bxr140]

I am still wrapping my head around @bxr140 ZM earnings play. I get that you're basically JUST focused on theta decay on the extrinsic value.

While it may seem pedantic, it is an important nuance: This play is 100% capturing volatility. Theta is simply the way that volatility is realized into profit.

II could understand it better as a naked call, but as a covered call seems like you have essentially hedged volatility against your underlying position. You're giving upside and setting your downside floor below natural resistance points?

A few points of my logic:
--I never wanted upside; my major concern (as it turns out, rightly so) was a post-earnings drop, and I structured the position around protecting against a post earnings drop.
--This started as a play in my retirement account, which does not allow vertical or naked positions. The 100 shares is simply the price of entry for this kind of play in that kind of account.
--The return was solid enough that when I went to make similar plays in other accounts I was satisfied with the return on the CC (as opposed to a vertical spread, which is typically how I'd make this kind of play)

 

[WattsHappening]

By specifically using the Roll transaction type (rather than a buy-to-close transaction plus a sell-to-open transaction). The sell to open generates the cash used in the buy to close transaction. The net credit (or debit - but only roll for a credit ) is what's left over after paying out on the closing side and taking in on the opening side.

The key here, I believe and am testing for myself right now, is don't close too early when you go ITM. In my case, I have a 760c expiring this week. It still has $9-13 in time value today, so even when it was $12 ITM earlier this morning I never considered rolling. There WON'T be an early assignment when there is that much time value remaining (not a guarantee, but I'll take 6 9's or whatever likelihood of no assignment). And for this roll purpose I'm sort of indifferent (at least in this particular position where I'm trying this out - still learning though) to being $10 or $40 ITM at expiration.

If time value is ~0 when I roll, then I'll have a net credit available when I roll out (a week, a month, whatever) if I leave the strike the same. I can then trade in some of that net credit for a higher / better strike (this is all part of the decision around WHICH position I'm rolling into).


So current example, and something I wanted to post as well. That 760 call for this Friday expiration - it still has ~$10 in time value. Therefore too early to roll. I'll keep an eye on it tomorrow, but my best guess right now is that option is going into Friday. What I'm watching is the time value on the option (mostly anyway). That time value WILL got to 0 at expiration on Friday; somewhere close to that (say $0.50?) I'll roll, whether it's ITM or OTM at that point. I'll roll out to the next week option, and I'll pick a new expiration based on all of the usual stuff that goes into picking a position.

If I'm far enough ITM, then I'll be picking a strike that is closer but possibly still deeply ITM.

The real point today is that I had as much internal angst this morning when I was $10 ITM as I had yesterday when I was $25 OTM, as I do right now ATM. Which is to say - none. Partly that is the size of the position, but mostly is that I believe I can roll this position to avoid selling the shares (if I want to), and keep the weekly credits going at a 'high' level (for the outcomes I seek), potentially indefinitely.


This particular position - I started it on Monday by purchasing 100 shares for $735. That's the shares that provide the cover to the 760 call. My worst case outcome on this position to the upside is that I collected a ~$9 premium plus it goes to expiration and I earn another $25 on the buy-735 / sell-760.

Yes, I would have made more by just buy and hold (assuming the shares go past $770ish). But this is cash that I don't want to buy and hold with - I already have enough shares and in my case, I'm more concerned with cash flow / income than I am with maximizing growth.

And most importantly for my situation, I have downside protection on these shares I bought at $735 - we didn't know on Monday we were going to see $770 later in the week. If the shares had been flat at $735 (or down) then I would be ahead by the $9 premium and I would be able to sell another call for next week using the same backing shares.

I like being paid to learn!


If this isn't yet making sense, then two ideas given that you want to continue at all :
1) keep asking questions (and reading, and doing other study yourself)
2) Setup a minimum position to start learning what those mechanics look like.

In my case, my first one of these , back in April when I started, was to sell the $200 put when shares were at $420 or so. I think it was 2 weeks out - maybe a month. And pre-split numbers too! I wanted to be REALLY far OTM on that first trade. The second trade was the $175 put with shares at $400 (even further OTM).

The real purpose was to start learning, and at least for me - I need some skin in the game to lock in the education. I made money on those two positions (I like being paid to learn).

I also intentionally setup small positions to try out new ideas (new to me anyway) to gain some experience with how these trades evolve, how to set them up, how to close them. That's what this current position is - really small, but hoping to demonstrate to myself that I can be much closer ITM than I have been, thereby earning a higher weekly premium, and still doing it 'safely' (for my context).

Thanks for this. Very helpful!

I have a fair amount of experience with simple option plays. Mostly writing covered calls and cash covered puts as I'm a big believer in letting time work on my side. I'm less familiar with rolling options you are describing in such great detail. But I've pretty much gone all in so don't have any cash sitting by to write puts. I still write a covered call every once in a while. Typically short term (2-4 weeks out) at an exercise price pretty far OTM. Most of the time, the options expire worthless.

Up until now, the couple of times the SP spiked higher than the exercise price, I've just bought back the call at a loss. I don't mind as I own many more shares than the CC shares, so the entire portfolio is happy even though this one trade went bad.

It sounds like what you are describing is rather than buying back the call at a loss, write another call further out in time and exercise price? Sounds great in theory, especially if you can roll at a new credit as you say.

So using your example of the 760c, let's say the SP continues to increase, say to 790 by Friday. You see the time value decreasing to 0, with an intrinsic value of 30, so you roll this CC into say a 1/29/2020 810c or something similar priced at 30+. And hope the SP dips at some point so you can cover at a lower price? Does that sound right?

TIA for your insights!

 

[st_lopes]

While it may seem pedantic, it is an important nuance: This play is 100% capturing volatility. Theta is simply the way that volatility is realized into profit.



A few points of my logic:
--I never wanted upside; my major concern (as it turns out, rightly so) was a post-earnings drop, and I structured the position around protecting against a post earnings drop.
--This started as a play in my retirement account, which does not allow vertical or naked positions. The 100 shares is simply the price of entry for this kind of play in that kind of account.
--The return was solid enough that when I went to make similar plays in other accounts I was satisfied with the return on the CC (as opposed to a vertical spread, which is typically how I'd make this kind of play)

Extremely helpful! Thank you.

 

[adiggs]

So using your example of the 760c, let's say the SP continues to increase, say to 790 by Friday. You see the time value decreasing to 0, with an intrinsic value of 30, so you roll this CC into say a 1/29/2020 810c or something similar priced at 30+. And hope the SP dips at some point so you can cover at a lower price? Does that sound right?

Yeah-that's the idea. Of course the new strikes and premiums will be something else, and that's the dynamic I'm hoping to start experimenting with this week. I also plan to post what happens with this position, as it goes, including my timing; the old and new position, the net credit; alternative positions considered for the roll. Everything that seems relevant to me, but I'm also happy to answer questions as well.

In the case of a 790 share price, I might only be able to roll up to 770 or 780 (on a 1 week option) to also net a credit. My ideal outcome is to roll up to something slightly OTM such as the 810 you mention while also receiving a ~$5 net credit ($5/contract/week premiums translates to me dancing in the streets ). But I'm also ready to roll up to something lower. Heck - I would even roll straight out (later expiration, same strike) if needed as a mechanism to extend the time of reckoning and create a window for the shares to come back to me.

I've rolled a couple of positions previously, but in hindsight, I made what I now believe to be a couple of important mistakes. The first was that I paid a pretty significant net debit for the new position. The second was that I rolled too soon, as there was still significant time value in the position.


As a result, in this particular situation, I sure hope that 760c finishes ITM this week! If it doesn't then I'll just write another for next week, and maybe do something closer ITM than the option for this week. This position is more about my own education / experience than it is about maximizing profit out of this slice of the portfolio. (EDIT to add: And I need the call to finish ITM to gain the experience / learning I'm talking about)

Bigger picture, the reason I test out these new (to me) ideas is that I think there is the possibility that I might do a lot more of this sort of trade. The big thing I want to get is increased confidence that I can write calls profitably against my shares, and only sell off the shares when I decide to let them go. If I had that confidence today, then I wouldn't be selling calls that are so far OTM, and that'll mean better premiums, as well as better tools and skills for handling the positions that go ITM.

 

[dakh]

So using your example of the 760c, let's say the SP continues to increase, say to 790 by Friday. You see the time value decreasing to 0, with an intrinsic value of 30, so you roll this CC into say a 1/29/2020 810c or something similar priced at 30+. And hope the SP dips at some point so you can cover at a lower price? Does that sound right?

Here's a visual of how rolling up and forward looks like in Fidelity ActiveTraderPro

As you can see rolling out my underwater 780 short call one week out and to 830 strike is "free".

Personally I set up a limit "buy to close" order immediately after selling a covered call option that is something like 20% of what I sold it for. If towards expiration I still have the damn thing, time to think if I want to just buy it back at a loss or roll forward/out. I am at the "monkey with a dart" stage on this part of the decision making process

PS: can someone explain why is Fidelity insisting on this being a limit order? Why can't I just tell them to execute the roll at market price?

 

[dakh]

The key here, I believe and am testing for myself right now, is don't close too early when you go ITM. In my case, I have a 760c expiring this week. It still has $9-13 in time value today, so even when it was $12 ITM earlier this morning I never considered rolling. There WON'T be an early assignment when there is that much time value remaining (not a guarantee, but I'll take 6 9's or whatever likelihood of no assignment). And for this roll purpose I'm sort of indifferent (at least in this particular position where I'm trying this out - still learning though) to being $10 or $40 ITM at expiration.

I don't understand this, can you explain in a different way? There's a certain curve of time value decay in an option. You're saying you want that curve to run its course all the way to almost 0 before you roll. This presupposes that this way you'll retain more of the time decay value vs. rolling your short call forward earlier (let's ignore increased early assignment risk if it's an ITM strike). But this heavily depends on the specifics of the trade. For an ITM call, time decay is pretty much linear. If you're rolling from ITM to OTM, I think it's possible to get more back in time value by doing it early. Am I wrong?

And.. my head starts to hurt if I try to think about the math that would be involved if we try to somehow capture how to optimize this that considers various possibilities of where the underlying moves if you do roll early. Uggh.

Edit: actually now that I think about this, rolling out an ITM short call would make sense to go into ATM call since ATM call has maximum time value. So then the choice is simply based on if the slope of time value decay curve for an ITM option is steeper than for ATM option of a further expiration. Looks like that should for the most part favor keeping the ITM option.

 

[WattsHappening]

Here's a visual of how rolling up and forward looks like in Fidelity ActiveTraderPro

View attachment 625146

As you can see rolling out my underwater 780 short call one week out and to 830 strike is "free".

Personally I set up a limit "buy to close" order immediately after selling a covered call option that is something like 20% of what I sold it for. If towards expiration I still have the damn thing, time to think if I want to just buy it back at a loss or roll forward/out. I am at the "monkey with a dart" stage on this part of the decision making process

PS: can someone explain why is Fidelity insisting on this being a limit order? Why can't I just tell them to execute the roll at market price?

Thank you; this is very helpful. I need to look on Schwab to see if there is something similar as I've yet to see it. Still not sure I want to spend the amount of time needed to stay on top of this trading strategy, but I want to learn it for sure.

 

[dakh]

Thank you; this is very helpful. I need to look on Schwab to see if there is something similar as I've yet to see it. Still not sure I want to spend the amount of time needed to stay on top of this trading strategy, but I want to learn it for sure.

You don't really have to do it with a specific roll strategy ticket. If you just sell another call and buy back your old call it works out just the same. You'll pay commission on 2 trades instead of 1 and you have to have enough cash/margin to do the transaction.

 

[dakh]

Edit: actually now that I think about this, rolling out an ITM short call would make sense to go into ATM call since ATM call has maximum time value. So then the choice is simply based on if the slope of time value decay curve for an ITM option is steeper than for ATM option of a further expiration. Looks like that should for the most part favor keeping the ITM option.

Hemmmmmmm...... To continue this to the extreme, can someone explain why is this wheel thing even a thing? Why is it not more profitable to keep selling ATM calls and letting them expire if the stock went down, and rolling them forward and up to ATM if the stock went up? ATM calls have max time value. I'm now getting real curious to see if someone ever run a simulation on historical data to see what this would yield vs. if you sell say at a fixed % OTM weeklies, and either just take losses or keep rolling them out to next weekly say in money-neutral trade until you're back to your target 15% OTM. I bet last year's TSLA run will rip either of these strategies to pieces, and the percentage you'd have to go up from ATM to make any money in a year will have to be pretty darn high.

So overall this effectively requires being able to tell the probability of TSLA shooting past your strike price, and by how much. And then you'd be able to do the math on what the current option pricing is and pick the best strike for max long term profit.

So the question then becomes, if you can't tell that probability, what are the extrinsic values of the calls at which this strategy yields enough to justify the risks of getting underwater on those sold calls? I feel like this can be quantified, but I don't have the time right now to try to do it. If we assume the market is efficient, then it is basically priced in to perfection and this strategy will not make you any money

 

[adiggs]

I don't understand this, can you explain in a different way? There's a certain curve of time value decay in an option. You're saying you want that curve to run its course all the way to almost 0 before you roll. This presupposes that this way you'll retain more of the time decay value vs. rolling your short call forward earlier (let's ignore increased early assignment risk if it's an ITM strike). But this heavily depends on the specifics of the trade. For an ITM call, time decay is pretty much linear. If you're rolling from ITM to OTM, I think it's possible to get more back in time value by doing it early. Am I wrong?

And.. my head starts to hurt if I try to think about the math that would be involved if we try to somehow capture how to optimize this that considers various possibilities of where the underlying moves if you do roll early. Uggh.

Edit: actually now that I think about this, rolling out an ITM short call would make sense to go into ATM call since ATM call has maximum time value. So then the choice is simply based on if the slope of time value decay curve for an ITM option is steeper than for ATM option of a further expiration. Looks like that should for the most part favor keeping the ITM option.

I'm still wrapping my brain around this idea in such a way that I can consistently use it, much less explain it.

One outcome when particularly deep ITM will be that the only reasonable net credit roll is to the same strike but a new (further) expiration date. That'll be because there is very little time value in either position (current and future) for a net credit. That deep is probably an indication that it's time to take assignment so you can deploy that capital somewhere more profitable.

The observation about the ATM call is particularly important I think. If you look closely at an option chain, I believe you'll find that not only is the ATM option the highest time value option in the chain, you will also find that the time value of options goes down pretty close to evenly as you move away from the ATM option. Whether you're going ITM or OTM, the time value for a particular distance from ATM is pretty close. Therefore - maximum time value for an option sale is the ATM option.

Sidebar: this observation has had me thinking about selling strangles instead of straddles. I.e. the ATM put and call. I'm not actually ready to do that, but for maximum time value at any particular expiration...


The best way I have for demonstrating this idea (roll at ~0 time value), which isn't a mathematical description by any means, is to do a comparison test.

Pick a ITM strike, preferably on Friday that has a time value that is nearly 0 (I figure that functionally, nearly 0 is around $1 and under for me). Then look at that strike 1 week later. If you were to roll that first position to the 1 week later / same strike, you'll have some amount of incremental time value. Do the same, but for an ITM option with more significant time value.

I'm confident that this won't be a 100% win for waiting on ~0 time value remaining - there are other factors that influence option pricing. The other reason is that I'm a Bayesian - there is no such thing as 100% or 0%, only close approximations.

For myself, when I'm optimizing for outcomes, I put more than strict financial results into the "equation" that I'm solving. I especially include the daily / weekly / monthly effort to implement any particular strategy that I'm thinking about (you can think of this as "I'm lazy" ). I want good risk weighted financial results with low effort, over great / perfect risk weighted financial results for (a lot) more effort. Or even more accurately - I want adequate risk weighted financial results to my situation / context with low effort that I still find fun (this is fun for me, else I'd have the portfolio in something a financial planner would recognize and approve of).

For some / many here, my motivations and target outcomes might be a good reason to more closely follow other's trades and reasons, than mine. My trades and reasons are designed around creating a particular income outcome. I can probably get that outcome on something like a 4% annual result - therefore the only reason I'll do this is I think I can beat 4% by enough to make a difference in my family's financial options in the future. I have at least 1 readily available alternative that has been pretty consistent around 8%.

It would be hard (impossible really) to find a 12% dividend paying anything with low enough risk for income in retirement, but I think that 1% / month is entirely reachable by selling TSLA options.

 

[adiggs]

And yes - I really do find that anything that can be said in 1 paragraph is worth at least 5

Anybody reading through these walls of text - kudos to you.

 

[dakh]

The observation about the ATM call is particularly important I think. If you look closely at an option chain, I believe you'll find that not only is the ATM option the highest time value option in the chain, you will also find that the time value of options goes down pretty close to evenly as you move away from the ATM option. Whether you're going ITM or OTM, the time value for a particular distance from ATM is pretty close. Therefore - maximum time value for an option sale is the ATM option.

Sidebar: this observation has had me thinking about selling strangles instead of straddles. I.e. the ATM put and call. I'm not actually ready to do that, but for maximum time value at any particular expiration...


The best way I have for demonstrating this idea (roll at ~0 time value), which isn't a mathematical description by any means, is to do a comparison test.

Pick a ITM strike, preferably on Friday that has a time value that is nearly 0 (I figure that functionally, nearly 0 is around $1 and under for me). Then look at that strike 1 week later. If you were to roll that first position to the 1 week later / same strike, you'll have some amount of incremental time value. Do the same, but for an ITM option with more significant time value.

Ok I think I get your point, although the scenario looks to be a bit more complicated overall.

So instead of discussing when to roll (we can just assume it is going to always be Fri afternoon), the more important question is if you're doing the wheel and your short call strike got obliterated, what do you do?

You could
1. Take losses on a stock price jump and just keep selling OTM calls as before
2. Roll to money-neutral strike next weekly, if such a thing exists
3. Take some of the losses and roll to ATM next week's call. This will maximize the time value you're getting out of this and will have the best probability of putting you back in the green after N iterations of catching up. That is assuming you can't predict where the stock is gonna go next week. If come next Friday you are facing the same story, do it again. Repeat until you catch up or run out of money paying for the difference while rolling
4. Set up a stop loss and buy the darn thing back at a set loss (like 200%)

This whole thing really makes me want to run those algos on historical data. I'm getting a feeling that either way you go you'll end up with about 0 dollars on a long enough time span. If you get an unlucky time span with a big spike up, you'll get negative. If you get a lucky time span with only moderate price changes, you'll make money. So the ability to make money on this strategy would then be dependent on your ability to make short term stock move predictions. Maybe not as precise as "what exactly it'll be next Friday" so psychologically it feels safer than just straight up playing short term options, but it is essentially the same thing. One thing that it definitely does is it makes your returns much smoother.

For example, if I were selling calls against my stock since 2014 and then when it started going up I'd got the message and just held, that would be very profitable. If, on the other hand, I wouldn't get the message and tried to recover by moving out and up, I'd have huge losses that would not recover.

 

[dakh]

Found someone who did the backtest but on VIX and looks like not on the actual historical price data but close enough: https://seekingalpha.com/article/4353418-selling-otm-covered-calls-systematically-30-year-backtest

The strategy with the highest expected return is to sell calls with strikes 0.50 standard deviations above the price of the stock.

 

[Runarbt]

Thank you; this is very helpful. I need to look on Schwab to see if there is something similar as I've yet to see it. Still not sure I want to spend the amount of time needed to stay on top of this trading strategy, but I want to learn it for sure.

Click "advanced trade options" or something like this, all the way to the right on the line of your current options. Should be two options, "trade" og "advanced trade options..".

You might have to be approved for options level 2 or 3 to get this option. I dont think I had it when I was level 1.

I can do a screenshot if needed.

 

[Runarbt]

Click "advanced trade options" or something like this, all the way to the right on the line of your current options. Should be two options, "trade" og "advanced trade options..".

You might have to be approved for options level 2 or 3 to get this option. I dont think I had it when I was level 1.

I can do a screenshot if needed.

Edit:

 

[Runarbt]

Schwab. To roll my 6x naked puts a week - this is how to do it. Will get paid an additional $3150.