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What is your day job? All we hear about is playing music, drinking, and traveling...aside from trading.
100%
Gap up and run to $198 was a crazy anomaly/short squeeze/lacked structure. TSLA needs to find a clean range and establish a healthy structure. Dunno if it can.
But oddly next week looks crazy bullish on the GEX side, not sure what to make of it. Maybe exit liquidity grab and we should ditch as well if we see $200-$207
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sorry to be slow, but how did you arrive at "selling the shares with a net price $850 and buying with a net $810" again? TIA!So here's an interesting trade I'm thinking of with NVDA...
Starting point is that I had 500 NVDA put to me @$950, less premium $900 cost-basis
As the SP dropped quite a lot after that, I got antsy about offloading the shares, so bought 5x Jan 2025 +p900 @$140
I then STO 5x 5/24 -c900 straddle, then rolled the -c down to -c800, giving a net premium $150 (p$90/c$60)
So what to do with this closer to expiry? I suspect there's a fair chance that NVDA is trading in the 800's, so both sides would be ITM, now here's the fun part
Imagine, that on 24/5 NVDA is 850, then I let both sides assign, that would be selling the shares with a net price $850 and buying with a net $810... then I write again ITM on both sides a week or a month out, to be seen where we are at that moment
I think my head just explodedSo here's an interesting trade I'm thinking of with NVDA...
Starting point is that I had 500 NVDA put to me @$950, less premium $900 cost-basis
As the SP dropped quite a lot after that, I got antsy about offloading the shares, so bought 5x Jan 2025 +p900 @$140
I then STO 5x 5/24 -c900 straddle, then rolled the -c down to -c800, giving a net premium $150 (p$90/c$60)
So what to do with this closer to expiry? I suspect there's a fair chance that NVDA is trading in the 800's, so both sides would be ITM, now here's the fun part
Imagine, that on 24/5 NVDA is 850, then I let both sides assign, that would be selling the shares with a net price $850 and buying with a net $810... then I write again ITM on both sides a week or a month out, to be seen where we are at that moment
What happens if NVDA is at 850 and you sell 1 months out -p1050 DITM puts and -c650So here's an interesting trade I'm thinking of with NVDA...
Starting point is that I had 500 NVDA put to me @$950, less premium $900 cost-basis
As the SP dropped quite a lot after that, I got antsy about offloading the shares, so bought 5x Jan 2025 +p900 @$140
I then STO 5x 5/24 -c900 straddle, then rolled the -c down to -c800, giving a net premium $150 (p$90/c$60)
So what to do with this closer to expiry? I suspect there's a fair chance that NVDA is trading in the 800's, so both sides would be ITM, now here's the fun part
Imagine, that on 24/5 NVDA is 850, then I let both sides assign, that would be selling the shares with a net price $850 and buying with a net $810... then I write again ITM on both sides a week or a month out, to be seen where we are at that moment
5x -p950 assigned, $50 premium, net cost $900sorry to be slow, but how did you arrive at "selling the shares with a net price $850 and buying with a net $810" again? TIA!
Doesn't look like a great idea...What happens if NVDA is at 850 and you sell 1 months out -p1050 DITM puts and -c650
"market forces"
Looks great unless NVDA goes to $1,000. Counting on it to be range bound from ~750-950 seems like its own risk.5x -p950 assigned, $50 premium, net cost $900
BTO 5x Jan +p900 -> STO 5x 5/24 -p900 @$90
STO 5x 5/24 -c800 @$60
NVDA >800 <900 -> 5x -c800 exercised, net $860, 5x -p900 assigned, net $810
And I still have the Jan +p900's, so I can write straddles, strangles, inverse strangles, etc.
In fact, it's "The Wheel", but playing both sides at once... maybe we call it "The Bicycle"
something is off there... that's ok, i have the whole day to figure it out!NVDA >800 <900 -> 5x -c800 exercised, net $860, 5x -p900 assigned, net $810
correct, that's exactly the wheel with straddle component; you collect 5 premiums (in your case, 10)
The Wheel Strategy : 2023 Update With New Examples
Contents The Wheel Strategy Flowchart Theoretical Example Four Real Trade Examples GE Wheel Trade Strategy AVDL Example BHP Example FAQ Conclusion The Wheel Strategy is a systematic and very powerful way to sell covered calls asoptionstradingiq.com
Well if it goes > 900 then I get a net sell of $950 as the puts expireLooks great unless NVDA goes to $1,000. Counting on it to be range bound from ~750-950 seems like its own risk.