$30,000 Millionaire said:

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IrishTxAggie said:

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$30,000 Millionaire said:

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stxag8 said:

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maroon19 said:

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So if I have BAC 6/19 calls, I should probably take the L and sell them right?

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Diamond hands on mine, at least until next week

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At this point, if you're already down ~70%, may as well make a YOLO play for next week.

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And this is how accounts get blown up. I speak from experience. If you've held a loser past -50%, you set yourself up for failure IMO. It's not smart trading

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I'm assuming most people here are not putting all their eggs in one basket and can live with an option expiring worthless on occasion.

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leoj said:

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This could be the next big one in the cloud/tech space

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AgEng06 said:

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Yep, I get it. I watch/read everything in this thread and will probably get Carter's book soon.

But you're kind of making my point... No one will just give a general guideline, but they will tell people when they have done wrong. How is that supposed to be used to learn?

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• Long positions I believe in - leave alone and wait. Wait can be a long time. Buy more if it declines
• Long positions I have reached target price on - evaluate keep or sell; perhaps sell part
• Long positions I have lost confidence in - dump immediately, opportunity cost matters

• Entering - I enter a position when I see momentum building and I set a drawdown plan where I sell in 20-25% increments as I reach targets.
• Exiting - I set a sell plan and sell in 20-25% increments as the swing moves
• Loss management - I normally set stop losses that can be -1% or -2%. Once a position enters profit, I set the stop loss to original investment. This is how I have not lost my ass trying to be short on SPX/NDX
• I try to stick to indexes or sector ETFs. Sometimes I will use 2X or 3X, but those are very short term instruments
• I like not having to worry about premiums and time; downside is your loss can be unmitigated, so you must watch closely. Also less volatile and aligns with what I have time for

• Covered calls - you have to risk assignment. I will occasionally buy to close if I can get away with it (and then resell). I try to get maximum premium. it's important to pick these stocks carefully.
• what you all call lotto plays - I will gamble on these and if they're not expensive, I normally cut bait quickly, but sometimes let expire worthless if it's a short time horizon and its just for fun
• Normal calls / puts - I normally buy further out to avoid accelerated decay if its economical so that there is time on your side. Premiums are higher obviously. I have a first phase and second phase target in mind up and down. When I decide it's a loser, I'll cut it. When in profit, I will try to get net free. Something I do that sometimes pays off and is sometimes stupid is I will wait to see what happens if I get down big and still have enough time (more than a week). Within a week, I cut quickly, certainly at 50%. Sometimes I also wait too long (or just the right amount of time)
• Hedges - I will sometimes buy counter positions when I feel it's appropriate. Normally I buy very short expiration with low premium and I will sometimes willingly let these expire worthless. Example of having a SPY 325C with a far out expiry in a volatile time and buying a near-term 310P put to offset
• Price/quantity - I am super careful not to over expose myself. I only buy options if I am willing to accept losing the entire premium. I try not to, but I only risk money I am OK with losing. I don't sell naked calls or puts.
• More advanced stuff - the folks here are superior entities to me

tailgatetimer10 said:

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So.

Nobody want to talk about ONTX up 30% AH???

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I bleed maroon said:

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My approach is eerily similar to $30k Millionaire.

My main investing malfunction is that I have way too many holdings to really actively manage. I have over 100 positions in multiple accounts (one IRA, one after-tax, and one trading account). No one should ever have that many - I'm basically managing a couple mutual funds worth of positions. I clear out the chaff at times, but it's soon replaced by something shiny and new. I'd prefer having no more than 10 positions in each account, but it's tough to winnow it down due to either the realities of capital gains tax or simply FOMO on future upside.

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