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That image is not a roll, do you mean a new position for next week?I have a $860 covered call expiring today, obviously deep under water. Have been exploring different options to roll to next week. What are some of the risks with the below I should be aware of?
Depends - if you don't want to lose them (for whatever reason, taxes, sentimental value..) get the best strike improvement possible for 1 or check 2 weeks out.I have a $860 covered call expiring today, obviously deep under water. Have been exploring different options to roll to next week. What are some of the risks with the below I should be aware of?
That you could lose $75k if it gets to the long leg and you do nothing (-the $5600ish you get for the spread).I have a $860 covered call expiring today, obviously deep under water. Have been exploring different options to roll to next week. What are some of the risks with the below I should be aware of?
I did the same exact thing. Horrible premiums but at least something going and still have more dry powder for Monday.Finally went in with some -795/+745 this morning for 10/29. Saving ammo for later today or Monday. We shall see.
Sorry, I didn't add the position im closing. Was just looking at different trades that give me around 5k credit.That image is not a roll, do you mean a new position for next week?
(I have ITM sold calls for next week)
My focus is keeping my shares, I would probably just roll to $880 as you suggested.Depends - if you don't want to lose them (for whatever reason, taxes, sentimental value..) get the best strike improvement possible for 1 or check 2 weeks out.
If you just want to get a credit, just roll to the same strike next week for a big credit.
Or split the difference - $880 for a big credit and another week.
that would be badThat you could lose $75k if it gets to the long leg and you do nothing (-the $5600ish you get for the spread).
Finally went in with some -795/+745 this morning for 10/29. Saving ammo for later today or Monday. We shall see.
Opened a position to test managing a tricky situation:
11/5 BPS -900p/+850p @14.00. (28% compared to secured margin).
If we hold above 900 this could lose value fast. If we fall below 900 I'll see what my options are, learning in the process.
NOT ADVICE. Never had to roll BPS before so that's why I'm opening this.
Leaving plenty of cash unlocked in case of a drop next week.
Can't you just roll the 775 to say 780?I realized this morning that I screwed up yesterday. I opened a set of 775/-850 BPS. They are doing nicely up 23% right now, however my screw up is opening with the spread in $5 increments. I wanted to turn it into an IC a little bit ago and realized I can’t because the call options are in $10 increments. I have a GTC order for these to close at 50%, maybe they will close later today and I can then reopen with a $10 incremental spread size. Something to keep in mind if you are looking to leg into IC’s.
A guy stops in a small town for the night while on a road trip. He asks a local which of the two motels he should stay at.after lots of data number-crunching and re-reading of posts, i have decided to halve my TSLA and test dip my toes into the "all cash" structure
for me, this is good news coz:
- potential for more options income
- i can open more positions and go safer deeper OTM
- risk management is easier: 'more DOTM positions will have more probability of success' is better than 'less OTM positions with some probability of success'
- even with lesser credit (due to far OTM), it's still more recurring/compounding income than just pure hodl
- even if sp increases by 50% annually, account total value is still more than just pure hodl
- even if sp increased by $100 into $1000 right now, it's still unrealized gain and not income - i can't spend it and can't compound the gain
- less worrying about black swan which could literally happen overnight and wipe out my account that i need for the next 30 years (think covid 2020, Black Monday, 420 funding secured, 911, etc)
- less worrying about the daily sp swings
- combined with more trading based on IV, there is less worrying if TSLA is directionally downhill
- less worrying about margin rooms and margin calls (since more cash means less reliance on margin)
- if i need to profit on the earnings sp spike, i may just go in and out (ie buy then sell the news)
- more cash means i can sometimes play with the 10:30 MMD for quick stock daytrading (for top-up of options income)
- more income means i have more capability to kickstart and fund my kids' post-university dreams - i rather they own a business than have a dayjob waiting to be paid every 2 weeks (son wants to own an indoor basketball gym and manage a league)
as far as i know, there are at least 2 big guns here who are also in "all cash" and they seem to be doing well
this is my 2 cents!
back to topic... my BCS today is probably safe; will close it soon:
View attachment 724301
after lots of data number-crunching and re-reading of posts, i have decided to halve my TSLA and test dip my toes into the "all cash" structure
for me, this is good news coz:
- potential for more options income
- i can open more positions and go safer deeper OTM
- risk management is easier: 'more DOTM positions will have more probability of success' is better than 'less OTM positions with some probability of success'
- even with lesser credit (due to far OTM), it's still more recurring/compounding income than just pure hodl
- even if sp increases by 50% annually, account total value is still more than just pure hodl
- even if sp increased by $100 into $1000 right now, it's still unrealized gain and not income - i can't spend it and can't compound the gain
- less worrying about black swan which could literally happen overnight and wipe out my account that i need for the next 30 years (think covid 2020, Black Monday, 420 funding secured, 911, etc)
- less worrying about the daily sp swings
- combined with more trading based on IV, there is less worrying if TSLA is directionally downhill
- less worrying about margin rooms and margin calls (since more cash means less reliance on margin)
- if i need to profit on the earnings sp spike, i may just go in and out (ie buy then sell the news)
- more cash means i can sometimes play with the 10:30 MMD for quick stock daytrading (for top-up of options income)
- more income means i have more capability to kickstart and fund my kids' post-university dreams - i rather they own a business than have a dayjob waiting to be paid every 2 weeks (son wants to own an indoor basketball gym and manage a league)
as far as i know, there are at least 2 big guns here who are also in "all cash" and they seem to be doing well
this is my 2 cents!
back to topic... my BCS today is probably safe; will close it soon:
View attachment 724301
I considered that then thought about how I would record that in my spreadsheet and bailed on the idea. I’m also not sure 910 is near the high for the upcoming week. I think once the 10Q is out we will get some more buying. I’m more comfortable with I dare you BPS at this point than call spreads.Can't you just roll the 775 to say 780?