Hi all, I truly encourage those interested among us to go back to page 110 of this wonderful thread and a chart of daily stock price. Observe the next several pages of discussion and understand that stuff gets real very quickly on a correction. It’s neat to read some of the wise folks become wiser and wiser over this stretch.
That is the piece that a number of the posts have missed. If one is in a position to reinvest back into TSLA then the results are staggering. Without reinvestment the results are simply good.
It actually works out that its better to stay in cash (at least initially) rather than invest profits in TSLA shares. It seems typical for brokers to reserve say 50% of the margin value of TSLA shares. So keeping the profits in cash increases the amount added to the available margin by 50% over purchasing shares. However you can soon reach a point where you're generating more than enough weekly profit and then it's best to reinvest the extra into shares or LEAPS.
Do you mind sharing if you have certain specific ways to identify the strikes?
I use a variety of techniques that all come together to set strikes. The first is to be patient and not pick strikes until I have a high confidence in how the week will play out. So I generally stick to weekly options and will even wait till Tuesday (like this week) to open most of my positions if things aren't clear enough. I can always roll positions later in the week to get more premium if the opportunity presents.
Monday we had the first trading day after the P&D numbers. So that was positive news that countered the markets negatives.
Do you happen to have the link to that post again, pls?
I just wanted to say thanks for doing this as I had been struggling with how to conceptualize how to best allocate capital. I plugged my own very conservative numbers into this and it reminded me I don't need to go #yolo. Stick to your plan and if you reinvest your weekly goal...your position will grow just fine.
The posts are quoted below. I didn't quote $1M exactly (kept it to $750k+) but in the spreadsheet below (rows 5-51 hidden) it comes out to $1M.
| Iron Condors Cash only re-invested weekly | |||
| Option eg | Premium | MM Impact | |
| 665/685 760/780 IC | $4.50 | $1,875 | |
| Week | No. of IC | Premium | NLV |
0 | 0 | $0 | $5,000 |
1 | 1 | $446 | $5,446 |
2 | 1 | $446 | $5,891 |
3 | 1 | $446 | $6,337 |
4 | 1 | $446 | $6,782 |
5 | 1 | $446 | $7,228 |
52 | 239 | $106,475 | $1,002,920 |
My current weekly gain is around 3-5% against total account capital/liquidity but was less before I got things properly worked out. I have achieved 7% but that was pushing it or just a crazy week to trade. My target is 5% and I see this being achievable unless I hit a bad week and then need a recovery week. I could achieve more if I didn't have mostly shares in the accounts as only about 1/3 of the share value gets released as excess liquidity that I can actually trade against.
I've recently started an experiment with a couple of my sons, one through my account (shadow accounting) and one through his own new account. Taking one for example, he started with around $5k excess liquidity, and is using half that amount as the margin limit to sell options against each week. So far this is yielding weekly option premiums of $4.25-$6, so say around 10%. At first this only allows for one contract per week but will build into additional contracts as the capital compounds. If we can keep this up for a year, then I won't have my kids coming to me asking for money.
Edit: Added graph for the last month for my main account:
i'm looking at closing my BPS that was opened on Friday. I've been sitting at 75%+ gain since close to end of day on Monday and the closing price has held steady.
Maybe .... You need bigger accounts. Or you're saying $100/week per contract.i'm looking at closing my BPS that was opened on Friday. I've been sitting at 75%+ gain since close to end of day on Monday and the closing price has held steady.
I get the sense that many of the experienced BPS traders don't ender the next week's trade until Thurs/Fri and some even wait until the following week.
And unfortunately i'm nowhere close to making that elusive $100/week club no matter what BPS configuration i try.
1) Install an app like Webull on your phone;
)
Why close it now with 25% of the premium left on the table? Do you have another position you want to open and need to use the margin? Do you currently expect the closing price on Friday to be well above the short strike on your BPS?i'm looking at closing my BPS that was opened on Friday. I've been sitting at 75%+ gain since close to end of day on Monday and the closing price has held steady.
I get the sense that many of the experienced BPS traders don't ender the next week's trade until Thurs/Fri and some even wait until the following week.
And unfortunately i'm nowhere close to making that elusive $100/week club no matter what BPS configuration i try.
