Another fun strategy when in the money on weekly calls is the ability to short the stock against it premarket to capture the spread between your call and premarket price action.


With $162.50 Strikes expiring tomorrow and shares popped to $165.50 I short it there for a risk free trade. Its like working with a net guaranteeing me $3 ($162.50 calls you can call out against a short position at $165.50).

What I look to do is take any initial profit taking move into the open and cover that short. I target $1+ and if it just keeps going up I was going to take $3 gain on options anyway.

But if it drops with early profit taking then I monitor and hold the short locking in the $3 or I cover when I see bottom volume pour in.

I've done this on some stocks 2-3 day trades..
All risk free.

AMGN $199.97. Lets see that trend kick in for a power move higher.

I know you have said this before, but is your options profit taking strategy to sell enough early on at a certain % to go net free, and then ride it out? Or progressively sell at different stages?

UpstateAg said:

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I know you have said this before, but is your options profit taking strategy to sell enough early on at a certain % to go net free, and then ride it out? Or progressively sell at different stages?

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Depends on expiration date primarily. Weekly s I want my capital back as quick as possible. Something like QCOM I'll take 25% somewhere after the open and stick with the overall trend with plenty of time.

Glad I took the opportunity to reduce my cost basis on those JD leaps. Also KR taking a huge hit on margins I believe, while my long QCOM position is really paying off. If they resolve the Apple situation watch out.

What's going on with China today?! I'm get notifications that pretty much all of the Chinese stocks are up 5% or more.

oldarmy1 said:

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leoj said:

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Hate that this site censors market watch lol.

Lrcx's fcf growth over the past 4 years is crazy. Screaming buy at these levels, I don't care if no one made a chip for another 12 months.

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I'll grab some Oct options and see if it has legs.

You could do worse than trading contrarian to upgrade and downgrade calls from some services. When those downgrades hit only after the stock has plummeted and are at major support it should be criminal. They are trying to break it through.

Not an ethical bone in their bodies.

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That's one of the most valuable lessons I learned when I worked in the industry. Their are no ethics and nothing is ever what it appears.

IrishTxAggie said:

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What's going on with China today?! I'm get notifications that pretty much all of the Chinese stocks are up 5% or more.

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US and China agreed to resume trade talks.

I love TexAg! Much easier than Google!

aggiehunter3 said:

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Today was insane. Sometimes it pays to be lucky rather than good. A twitter handle I follow alerted the coil in BA, so checked the chart and bought some weekly $350 calls at $1.37...about 5 minutes before the markets turned and solid production forecast news came out. Closed out half at 50% at $4 and 25% at $5. Let's see how the rest of the week plays out.

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Took the last 25% off at $10 don't want to get greedy

Amd run has to end at some point right? Those 9/14 $21 calls are going to be my big one that got away lol

DOW on gap fill watch. Less than 200 points from starting the gap fill. It hits that its as good a guarantee that the gap fills as there is.

I love Trump but sometimes he should STFU. Market selling off because of this F'ing tweet.

Bought a 9/14 29P on IQ

My chart for the day looks great until 10:15, and then down. Like a freaking mountain.

UpstateAg said:

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My chart for the day looks great until 10:15, and then down. Like a freaking mountain.

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Yeah, my MCHP just went negative. Why tweet that crap out?

Prognightmare said:

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UpstateAg said:

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My chart for the day looks great until 10:15, and then down. Like a freaking mountain.

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Yeah, my MCHP just went negative. Why tweet that crap out?

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He's got to prove everyone wrong

Only good news on MCHP is it filled that gap so it hopefully won't come back to it later

gougler08 said:

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Prognightmare said:

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UpstateAg said:

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My chart for the day looks great until 10:15, and then down. Like a freaking mountain.

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Yeah, my MCHP just went negative. Why tweet that crap out?

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He's got to prove everyone wrong

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What's crazy is that everyone that follows it, know's China is in a hard spot. All he did was spook the markets and pulled the rug out from under the market. I picked up some more Oct MCHP calls to lower my cost basis, but damn.

TEUM making a move

I've been following TNDM that a poster mentioned a few pages back. Damn that is a strong stock.

DBX bouncing off the v bottom line again today

MCHP filled that gap down and has bounced back as well

gougler08 said:

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DBX bouncing off the v bottom line again today

MCHP filled that gap down and has bounced back as well

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saw that

MU trying to run

The SOX spiked too. Buyers coming back into chips.

TexAgs need to add a fingers crossed emoji for this board.

Got my money back on my weekly MU call with that run. I'll take it

AMGN is being a monster.

UpstateAg said:

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AMGN is being a monster.

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This is why we went out to mid Oct.
I see AMGN pushing towards $210

Your strategy to set the price in the upper 200s and forget it?

chased nflx calls for next week thinking it had followed a similar pattern to yesterday where there was a mid morning dip then rip...its been all dip since I bought

UpstateAg said:

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Your strategy to set the price in the upper 200s and forget it?

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Now it is but its net free options now.

I have a sell set at $3.85

leoj said:

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Amd run has to end at some point right? Those 9/14 $21 calls are going to be my big one that got away lol

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Big reversal in AMD

AMD reversal -- downwards. Load up when it bottoms in days/weeks

Check out AIMT....think it was mentioned here long ago or on the biotech thread. Look at the Oct 35 C

Check out the IBB names to go along with AMGN....CELG REGN VRTX. Not a large cap, but also like MDT Nov 97.5

Will do Ranger, thx

I went with puts on AMD to try and play the reversal