InTheShadows
Active Member
Yea it was like the whales gave the MM’s the finger.
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Wiki Selling TSLA Options - Be the House
- Thread starter adiggs
- Start date
AquaY
Member
And that's the thing to learn from today.
Don't count your chickens before they expire. close them out if close.
To clarify, I'm selling cc against shares, but my question is whether I can also do it against long calls.
Appears to be a ~10x jump in volume at the 4pm spike vs. a few minutes earlier, so a closing cross?
pz1975
Active Member
I did something different this week with my at-risk CCs. I had 20 $730 CCs I had sold last week. Instead of closing them all on Monday when the SP spiked, I closed half at a loss and let the rest ride. I then sold $750 CCs for next week to make up for the loss on the first half. I ended up closing the other 10 today for a 60-70% profit and my $750 CCs for next week are nicely green.
Usually I just deal with an entire position all the same but splitting them took half the imminent risk off the table while still giving a chance for the other half to become profitable (which they did fortunately).
Anyways, nothing earth-shattering here but figured I would share.
Usually I just deal with an entire position all the same but splitting them took half the imminent risk off the table while still giving a chance for the other half to become profitable (which they did fortunately).
Anyways, nothing earth-shattering here but figured I would share.
1 hr before close I BTC the 730cc didn’t think I had a chance for them to be in the money. I actually need the money to prepare for a possible SpaceX fund. Sold 150 shares of my margined TSLA and likely another 150 shares Tuesday hopefully we get a pop.
Didn’t open any new positions so I don’t have to worry over the 3 day weekend.
Options trading is 10000X better than rentals IMO. Only calls I get is from my brokerage and not about flooded basement
. I guess both are just as bad?
Didn’t open any new positions so I don’t have to worry over the 3 day weekend.
Options trading is 10000X better than rentals IMO. Only calls I get is from my brokerage and not about flooded basement
. I guess both are just as bad?
But, but.... 420! Of course it's a good deal.BTC 2x c735@$0.05, STO 9/10/21 8x C745@$4.20. Not sure if $4.20was a good "deal"...
I've only got shares in my Roth (still thinking about a big conversion to LEAPs). But I've been selling CC in an IRA against longer dated calls - it's all I have in that account (no shares) - and it's never an issue. Been selling a bucket of these
.Technically speaking, what we have taken to calling an lcc is known more widely as a calendar spread. That might help in your conversations with the broker.
At Fidelity that is Options Level 2 + Spread Trading. There is another element on the IRAs for margin, where margin in an IRA only means that you can use unsettled funds to trade.
This dynamic, of a late move in the share price, except spread out over the whole expiration day, is what created my single biggest losing position. This last minute dynamic where minor share price moves can create HUGE option premium moves is one reason I pay the .10 or .50 when I near expiration and positively close positions. It's never necessary or beneficial - until it is.
The way I see it - paying that small % to positively close is minor compared to the overall results I'm getting. And it frees up resources to open new positions on Friday rather than waiting for Monday. And most importantly I never have that 1/year (or whatever frequency) end of day freak out. A settled stomach with focus on yard work, errands, or really anything else is worth it.
NOT-ADVICE of course, but I very rarely allow even very far OTM positions to expire worthless. I'll pay the penny if I think it doesn't matter one way or the other - but that's just me.
alterac000
Member
I have a Roth with TD and I sell cc's against my long calls. The cc's need to be at a higher strike than your long calls otherwise TD will use margin (= cash reserve in Roth) for the trade.
Have a great long weekend, everyone!!! I'm off to my daily bike run.
Lots of learning this week from this amazing thread. Don't forget to count your money, update your spreadsheets, plan next week's trades, exercise, and buy someone a meal.
Today's sp closing is a feel-good moment, so I'm delivering surprise pizza to my parents tomorrow. After. Stealing. A. Slice.
Lots of learning this week from this amazing thread. Don't forget to count your money, update your spreadsheets, plan next week's trades, exercise, and buy someone a meal.
Today's sp closing is a feel-good moment, so I'm delivering surprise pizza to my parents tomorrow. After. Stealing. A. Slice.
As people are asking about the closing cross:
white at bottom is volume, purple is closing-cross imbalance (positive = call-side imbalance, negative = sell-side imbalance).
30sec candles.
at 15:55 orders get locked in/deleted, 15:58 orders get moved to IO (imbalance only) under certain condition. This are the 2 "drops".
Before 15:55 anyone can "fake" demand/supply, as you can cancel your closing-order until 15:55.
SP usually only reacts after 15:55.
white at bottom is volume, purple is closing-cross imbalance (positive = call-side imbalance, negative = sell-side imbalance).
30sec candles.
at 15:55 orders get locked in/deleted, 15:58 orders get moved to IO (imbalance only) under certain condition. This are the 2 "drops".
Before 15:55 anyone can "fake" demand/supply, as you can cancel your closing-order until 15:55.
SP usually only reacts after 15:55.
My trades opened for next weeks up to now:
- 10/9 720/680 BPS @-3.84
- 17/9 700/625 BPS @-7.84
- 17/9 +720p/-2x740p/+750p ratio butterfly @-2.88 (hoping to pin the 740 on 17/9 - but at least 3k if we land above 730)
- 17/9 -760c @6.94 (only a small position to collect theta over the weekend & have something to close on a down tuesday)
things i plan to open on up-day next week:
- 17/9 -760c @8.00
- 10/9 -755c @4.00
- some kind of bear call spread to make the 720/680 into an iron condor, probably 755/760 or so.. small spread, as i fear a breakout
- rolling my 17/9 700c out to oct/nov/dec or so to continue selling call against.
What are your strategies?
- 10/9 720/680 BPS @-3.84
- 17/9 700/625 BPS @-7.84
- 17/9 +720p/-2x740p/+750p ratio butterfly @-2.88 (hoping to pin the 740 on 17/9 - but at least 3k if we land above 730)
- 17/9 -760c @6.94 (only a small position to collect theta over the weekend & have something to close on a down tuesday)
things i plan to open on up-day next week:
- 17/9 -760c @8.00
- 10/9 -755c @4.00
- some kind of bear call spread to make the 720/680 into an iron condor, probably 755/760 or so.. small spread, as i fear a breakout
- rolling my 17/9 700c out to oct/nov/dec or so to continue selling call against.
What are your strategies?
corduroy
Active Member
I had my best week since I started tracking weekly results about 2 months ago. 2.1%! Thanks to everyone for all the ideas and knowledge sharing. As someone who used to be constrained by a smaller overall portfolio (for this thread's standard), I wasn't able to sell many CCs or LCCs, or CSPs, spreads have truly been a game changer for me.
2 years ago I was not even thinking about retirement. 1 year ago, I set a goal date of 2025. Now that goal date is revised to Dec 31, 2022. I want to take all of 2022 and see if can consistently replicate what I am doing. If I can, I'll be "retiring" to sell options full time! (sounds weird to even say that). This is more fun than I've had in 30 years of my career!
2 years ago I was not even thinking about retirement. 1 year ago, I set a goal date of 2025. Now that goal date is revised to Dec 31, 2022. I want to take all of 2022 and see if can consistently replicate what I am doing. If I can, I'll be "retiring" to sell options full time! (sounds weird to even say that). This is more fun than I've had in 30 years of my career!
InTheShadows
Active Member
That is awesome! For retirement goals. I was trying to figure out how I wanted to define mine and put quite a bit of thought into it.
I defined it by I want to make $z annual income from selling theta (having stocks called away that gained 80% doesn't count towards that goal at all, only theta income.) and $y in my accounts. And y is enough money for me and my wife to live to be 90 (I'm 47 now) on 2x what we live on per year now.
The reason I went with 2x current living expenses is first inflation, second, I want to take half of the accounts values and park them in the SPY to minimize risk. However, I am sure I will still sell CC's on that too. In reality I'm sure I could cut that in half.
I saved my original plan onto another sheet in my trading journal as just text because the actual goal sheet is living and breathing as it adjusts off of my actual weekly performance and average weekly returns to date.
InTheShadows
Active Member
Posting this here for some weekend discussion.
Selling big boy iron condors - TastyTrade
They are talking a lot about what we have been talking about the past month or so. Really interesting section on taking profits early too.
Selling big boy iron condors - TastyTrade
They are talking a lot about what we have been talking about the past month or so. Really interesting section on taking profits early too.
Sure, I'm much more aggressive with the Roth since I've yet to have any shares get pulled away and if that happened there would NOT be any tax burden, so yeah! Then hammer puts like most of you already do.
The others I think are either safe to roll to next week (without being underwater) or should go profitable at some point.
But WOW, that closing cross, wish I had held on for a few more minutes....geez!
The $735 and 745 are already -25% and the $720 is -22%. I expect them both to be neutral come Tuesday morning trading, but time will tell!
Thanks for this nudge. I haven't been able to do Spreads in my Roth. Just figured it wasn't a thing for IRAs.
Did some checking and with Fidelity this is the message I get when applying "Level 3, 4 and 5 are not available with a retirement account. Spread trading is not available as this account has an FDIC-Insured Deposit Sweep core position which is not allowed. To apply for spreads trading, you need to change your account's core position. Go to the Positions page, click on the account's core position, then select the "Change Core Position" button, or call us at 800-343-3548"
Hopefully next week I'll be able to do spreads in my Roth as well.
BTW, this is the best thread on TMC(maybe the internet). It's completely changed my life, and my ability to make money has grown immensely. Cheers to all the regular contributors, us stalkers appreciate it!
InTheShadows
Active Member
My IRA is with them. You need level 2 with the spread agreement.
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