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  • xraygoggles
    replied
    Originally posted by Zaphod View Post

    Dont do it. You'll most likely win big for a while, and then get rekt. Just think of people that sold options on GME or TSLA in the past with what appeared like "juicy premium", it wasnt.

    The only reason to use portfolio margin is to have some ability to leg into things and have the margin be recognized as a spread vs. to single legs of an option. Can be nice.

    I looked into it before and it really wasnt different.
    Yea of course I'm not planning on anything crazy, it's just another tool in the belt, for future use, if desired.

    Agree re portfolio margin - it's a double edged sword for sure. Juicy leverage is good and bad.

    Leave a comment:


  • DocFi
    replied
    Originally posted by Lordosis View Post

    His logic was sound but his timing was horrendous. Which is rather ironic.
    As they say, one should not confuse strategy with outcomes!

    Leave a comment:


  • Lordosis
    replied
    Originally posted by DocFi View Post

    Truly a cautionary tale! Market Timer is certainly more knowledgeable than I am. Not sure if it was bad strategy or bad luck but in the end he could’ve had more by doing less.
    His logic was sound but his timing was horrendous. Which is rather ironic.

    Leave a comment:


  • DocFi
    replied
    Originally posted by Lordosis View Post
    Has everyone here read the Market Timers thread? https://www.bogleheads.org/forum/vie...hp?f=10&t=5934
    Truly a cautionary tale! Market Timer is certainly more knowledgeable than I am. Not sure if it was bad strategy or bad luck but in the end he could’ve had more by doing less.

    Leave a comment:


  • DocFi
    replied
    Nysoz
    Brains428
    Jack_Sparrow

    Great info and thanks for sharing your advice and experiences. I am very far removed from knowing what an Iron Condor is but let's see if I ever get there!

    Leave a comment:


  • Lordosis
    replied
    Has everyone here read the Market Timers thread? https://www.bogleheads.org/forum/vie...hp?f=10&t=5934

    Leave a comment:


  • Zaphod
    replied
    Originally posted by xraygoggles View Post
    I recently was approved by Schwab for naked options as well as Portfolio Margin. Not saying I'm going to be going crazy selling naked puts or calls, but has anyone here had any experience doing this, even only sporadically?

    Portfolio Margin is a great perk, but of course there are pitfalls to watch out for.
    Dont do it. You'll most likely win big for a while, and then get rekt. Just think of people that sold options on GME or TSLA in the past with what appeared like "juicy premium", it wasnt.

    The only reason to use portfolio margin is to have some ability to leg into things and have the margin be recognized as a spread vs. to single legs of an option. Can be nice.

    I looked into it before and it really wasnt different.

    Leave a comment:


  • The White Coat Investor
    replied
    The problem with options is they all have a negative expected return after costs. So in that sense, none of them are a real investment, they're just different ways to gamble or at best speculate on the market. You should always ask yourself who is on the other side of the bet and what do they know that you don't.

    My very first investment as a kid was an option that my dad's friend recommended to the two of us. I lost the whole $500, money I really didn't have to lose (it was most of my Alaska Permanent Fund Dividend as I recall, basically most of a year's income).

    Good luck to those trying to make money this way. Please limit how much of your portfolio you use to do so.

    Leave a comment:


  • xraygoggles
    replied
    I recently was approved by Schwab for naked options as well as Portfolio Margin. Not saying I'm going to be going crazy selling naked puts or calls, but has anyone here had any experience doing this, even only sporadically?

    Portfolio Margin is a great perk, but of course there are pitfalls to watch out for.

    Leave a comment:


  • Nysoz
    replied
    Yeah I mean it doesn't hurt to have margin on your account at all. Just don't use it if you don't want to. Just have to be aware of how much cash you have vs how much margin you're using when opening trades.

    Leave a comment:


  • Zaphod
    replied
    Originally posted by Nysoz View Post
    I've been doing a lot of iron condors on TSLA with wide middle strikes. If one side gets tested, I roll the untested side to squeeze more profit out of the trade. So until overall IV stays down for a long period of time, I'll still make a fair amount of money doing so. The biggest risk I have is if TSLA jumps up causing me to lose up to the delta between my call options or drops down and stays down for a prolonged period of time with IV staying low as well. If it drops between my put strikes I plan on taking possession of the shares on margin and sell atm calls against them to get them out of my account when I can. Following TSLA as closely as I do, I avoid selling the call side when there's potential catalysts or pick really far otm strikes and the put side is at a value where I'm ok holding shares on margin.

    Regarding the puts, yeah I saw that. Lots of theories out there. I'm not sure if anyone else mentioned it, but someone supposedly bought quite a few 2/12 800 puts before the massive buy in the 2/19 or 3/19 20 puts. Attempted negative/reverse gamma squeeze? No idea, but whatever caused the share price to go from 850 to 800 definitely made the 2/12 800 puts way more valuable.
    Tesla is better for IC than many stocks that dont have much call skew. Like the active management and closing of side that gets way out, its the best way to manage those. Have been wondering if I should put some accounts on portfolio margin so I can leg into spreads and such better, otherwise you dont get credit for it as a spread but two different positions.

    Leave a comment:


  • Nysoz
    replied
    I've been doing a lot of iron condors on TSLA with wide middle strikes. If one side gets tested, I roll the untested side to squeeze more profit out of the trade. So until overall IV stays down for a long period of time, I'll still make a fair amount of money doing so. The biggest risk I have is if TSLA jumps up causing me to lose up to the delta between my call options or drops down and stays down for a prolonged period of time with IV staying low as well. If it drops between my put strikes I plan on taking possession of the shares on margin and sell atm calls against them to get them out of my account when I can. Following TSLA as closely as I do, I avoid selling the call side when there's potential catalysts or pick really far otm strikes and the put side is at a value where I'm ok holding shares on margin.

    Regarding the puts, yeah I saw that. Lots of theories out there. I'm not sure if anyone else mentioned it, but someone supposedly bought quite a few 2/12 800 puts before the massive buy in the 2/19 or 3/19 20 puts. Attempted negative/reverse gamma squeeze? No idea, but whatever caused the share price to go from 850 to 800 definitely made the 2/12 800 puts way more valuable.

    Leave a comment:


  • Tim
    replied
    Originally posted by CordMcNally View Post

    At what point do you determine there’s no longer money to be made? That seems to be the most important piece of information to have.
    Professional options traders "intend" to make money only based upon what the market gives them. Up or down is irrelevant.
    The discussion here seems to be more dependent on a secular upward market trend. Fundamental flaw, with options "time is not your friend".
    Try looking at "Pivot Points". Mathematically it is great. Tells you when the price direction changes. Unfortunately it very precise for the past but fairly useless for future.
    If you really want to play options, need to be agnostic to the direction of the price movement. Every trading system works until it doesn't.

    Leave a comment:


  • Brains428
    replied
    The open interest on the 3/21 TSLA 20 put is 277k today. Hm.

    Leave a comment:


  • Brains428
    replied
    Originally posted by Panscan View Post

    They recently did this? I guess I'm sure there is more to their strategy than this one trade but that seems so far OTM with such a low chance of happening. Or maybe I'm just completely misunderstanding
    Some of the responders have plausible explanations. Problem with twitter is filtering out the noise.

    Leave a comment:

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