I have 5% of my portfolio in SPXU. Shares.
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Mostly Foggy Recollection
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Mostly Foggy Recollection said:
I have 5% of my portfolio in SPXU. Shares.
If you buy calls and never get assigned, do you have any exposure to the expenses?
Getting back to posts regarding trading experience, I have been involved in the financial industry since 1992. Having been a fixed income trader my entire career starting with Mortgage Backed Securities and then in 1997 began trading distressed debt. Pretty much semi-retired now doing some consulting work for a distressed fund now and trading own account in distressed names. Never was active in equity trading through the years - just special situations and such. Got serious during Covid after the first massive selloff last year. Went heavy in Sept starting with $25k in a trading account. Following and learning from many here that account is now over $200k, I know I have a bit more risk reward profile than many here - but strategies here are very good and this thread is great!! Following up on 30K Millionaire and his C trade (nice trade by the way and there were many back then) my first big equity trade was luck.
In 1998 and early 1999 I was very active in trading distressed bonds in Wireless Cable Companies. One, CAI Wireless restructured first and bond holders were given new bonds and new equity. One of my accounts was prohibited from owning stock in his fund and he wasn't entirely high on the equity. I bought his 100k shares for $1 total in Jan 1999. Sold them to Worldcom that summer for $28/share. Pretty much started my 401k to another level. Needless to say in 2003 probably traded the most Worldcom distressed bonds than any firm on the street. Was a great run, that market is dead now but really enjoying learning more about options and technical trading of equities. I still come across some very nice distressed plays and Fido platform allows bond trading so I will be more than happy to share some of those as well. Takes longer, but returns are good as well. Thanks for listening. Good luck to all.
In 1998 and early 1999 I was very active in trading distressed bonds in Wireless Cable Companies. One, CAI Wireless restructured first and bond holders were given new bonds and new equity. One of my accounts was prohibited from owning stock in his fund and he wasn't entirely high on the equity. I bought his 100k shares for $1 total in Jan 1999. Sold them to Worldcom that summer for $28/share. Pretty much started my 401k to another level. Needless to say in 2003 probably traded the most Worldcom distressed bonds than any firm on the street. Was a great run, that market is dead now but really enjoying learning more about options and technical trading of equities. I still come across some very nice distressed plays and Fido platform allows bond trading so I will be more than happy to share some of those as well. Takes longer, but returns are good as well. Thanks for listening. Good luck to all.
Mostly Foggy Recollection
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No, you never owned the underlying.
Charismatic Megafauna
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AG
I want 30k to tell me a bedtime story every night. "And it gapped and ran in the morning and they all lived happily ever after"
Any time you buy, whether it's puts or calls, the most you can lose is the premium you paid.mazag08 said:Mostly Foggy Recollection said:
I have 5% of my portfolio in SPXU. Shares.
If you buy calls and never get assigned, do you have any exposure to the expenses?
If you say it 30k times, it may happen!!!
Let it Ride
Let's get GMe to run back over 120 just for a minute or 5 tomorrow.
Mostly Foggy Recollection said:
I have 5% of my portfolio in SPXU. Shares.
Do you buy these straight up or do you sell puts in order to accumulate as the market goes up?
Let it ride
one thing I think some here don't get is UVXY. It goes down forever. It is a very short term hedge only, not meant to sit on. Honestly, it's best to daytrade it on a day like today.
Pretty wild stuff back then. I remember the folks in our IRA department liquidating 1000s of worldcom shares out of people's accounts for one penny. It hurt watching that.
Mostly Foggy Recollection
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Yes, it's a weekly play unless you have a bad Friday continuation where a red Monday looks likely.
If you want to play it longer, it's a great play for selling premium. Straddles galore.
If you want to play it longer, it's a great play for selling premium. Straddles galore.
One thing so many people never think about are the employees that have their whole retirement in their company stock. Happened so many times. The names I traded would shock the younger generation. They'd be shocked at the amount and the names of so many companies that have filed bankruptcy or were very close.
Mostly Foggy Recollection
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Both
What' great laugh before lights out. Wife thinks I've lost it. Thanks NRD09!NRD09 said:
I want 30k to tell me a bedtime story every night. "And it gapped and ran in the morning and they all lived happily ever after"
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
NIO is the only stock I have that I'm "upset" about. Being down 5% across the board for the day blows, but I still have 25% cash in my portfolio. This still doesn't feel like the correction I've been waiting for. Are you guys staying on the sidelines or getting back in tomorrow?
Charismatic Megafauna
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AG
Good call, i used to use vxx calls and they seemed to perform really well on days like today. I switched over to spxs calls and today they bumped and i cashed them in but they really didn't spike like the vxx calls do. Think I'm gonna go back.
Also i got a pdt warning (warning you have used 2 day trades in the last 5 days...) today in a td account i have 30k in. I thought it wasn't an issue if your account value was over 25k?
Also i got a pdt warning (warning you have used 2 day trades in the last 5 days...) today in a td account i have 30k in. I thought it wasn't an issue if your account value was over 25k?
Ragoo said:
How impatient with losers are you?
Very impatient. I will not take a loss greater than %.05 of my account size. For open profits it gets way more relaxed but usually a mental trailing stop loss not to exceed 20% of the high water Mark on the trade. I have a rather large account so it forces me to have hundreds of positions (plus many futures positions) but it works for me. The most important thing for me is to protect my account profits. I do this by not taking losses against my large gains. Never give up the gains you have made - never think in terms of playing with "house money".
Thank you
Philip J Fry said:
NIO is the only stock I have that I'm "upset" about. Being down 5% across the board for the day blows, but I still have 25% cash in my portfolio. This still doesn't feel like the correction I've been waiting for. Are you guys staying on the sidelines or getting back in tomorrow?
I bought a couple things today but still ~30% cash right now
AgsnFly said:Ragoo said:
How impatient with losers are you?
Very impatient. I will not take a loss greater than %.05 of my account size. For open profits it gets way more relaxed but usually a mental trailing stop loss not to exceed 20% of the high water Mark on the trade. I have a rather large account so it forces me to have hundreds of positions (plus many futures positions) but it works for me. The most important thing for me is to protect my account profits. I do this by not taking losses against my large gains. Never give up the gains you have made - never think in terms of playing with "house money".
2% here and I get very fussy when it happens
Maybe you have to have margin selected and not cash account? Could be wrong but I also understood it to be 25k account minimum unless they've changed it.NRD09 said:
Good call, i used to use vxx calls and they seemed to perform really well on days like today. I switched over to spxs calls and today they bumped and i cashed them in but they really didn't spike like the vxx calls do. Think I'm gonna go back.
Also i got a pdt warning (warning you have used 2 day trades in the last 5 days...) today in a td account i have 30k in. I thought it wasn't an issue if your account value was over 25k?
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11
Proverbs 13:11
This is my issue; I'm approaching 50% cash in my IRA and struggling what to do. Cashed it all out in early February 2020 and missed all the losses (all luck) and have been long on multiple positions since late March 2020. Started taking profits lately but don't know where to reinvest - 6 figures on the sideline feels painful.
Started a small account on TDA with $5000. I try to focus on small cap positions, having 2-3 option positions max at one time.
I'm trying to develop some good habits on a small investment before adding more capital over time. But with this small amount, it seems hard to work a reasonable hedge strategy or be impatient because my positions are so small.
If I can grab enough shares to sell some covered calls, I do that. But if I look at SPY for some short term put plays, I'd have to use 5% of my overall account in premium.
Or, do I forego being protective on this amount and just work to maximize my profit? It's really just starter money for me, and I'm willing to weather the swings if I'm learning.
Any of these topics part of the seminar on Saturday?
I'm trying to develop some good habits on a small investment before adding more capital over time. But with this small amount, it seems hard to work a reasonable hedge strategy or be impatient because my positions are so small.
If I can grab enough shares to sell some covered calls, I do that. But if I look at SPY for some short term put plays, I'd have to use 5% of my overall account in premium.
Or, do I forego being protective on this amount and just work to maximize my profit? It's really just starter money for me, and I'm willing to weather the swings if I'm learning.
Any of these topics part of the seminar on Saturday?
Mostly Foggy Recollection
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It may be a function of being close to the threshold or what you mentioned above.
Prophet00 said:
Started a small account on TDA with $5000. I try to focus on small cap positions, having 2-3 option positions max at one time.
I'm trying to develop some good habits on a small investment before adding more capital over time. But with this small amount, it seems hard to work a reasonable hedge strategy or be impatient because my positions are so small.
If I can grab enough shares to sell some covered calls, I do that. But if I look at SPY for some short term put plays, I'd have to use 5% of my overall account in premium.
Or, do I forego being protective on this amount and just work to maximize my profit? It's really just starter money for me, and I'm willing to weather the swings if I'm learning.
Any of these topics part of the seminar on Saturday?
Out of the money Put butterflies.
Mostly Foggy Recollection said:
Yes, it's a weekly play unless you have a bad Friday continuation where a red Monday looks likely.
If you want to play it longer, it's a great play for selling premium. Straddles galore.
UVXY... talk to me like I'm 5 if you need to
Just started UVXY recently. Up on the week, with a covered call on it (bought/sold cc's couple times this week to roll premium).
Main question is.... is UVXY to be held over weekends, or too volatile for that? I can buy back cc early Friday and then sell shares for a profit. Or I could roll the cc to next Friday and pull in some premium that way. Is there a best or preferred way to approach this?
Thanks! I''ll have to look it up. Sorry, missed your example up above.
$30,000 Millionaire said:Prophet00 said:
Started a small account on TDA with $5000. I try to focus on small cap positions, having 2-3 option positions max at one time.
I'm trying to develop some good habits on a small investment before adding more capital over time. But with this small amount, it seems hard to work a reasonable hedge strategy or be impatient because my positions are so small.
If I can grab enough shares to sell some covered calls, I do that. But if I look at SPY for some short term put plays, I'd have to use 5% of my overall account in premium.
Or, do I forego being protective on this amount and just work to maximize my profit? It's really just starter money for me, and I'm willing to weather the swings if I'm learning.
Any of these topics part of the seminar on Saturday?
Out of the money Put butterflies.
This list he posted steps through in what amounts to most expensive to least, depending on strikes and expirations of course.
- Buy shares in SH around SPX 3860 (mean reversion). Decide your stop obviously
- Buy shares in SPXS or SPXU. You can also buy calls in these as a hedge. This is what OA does. I personally am carrying SPXU shares because I believe the EOY will tank and I want some flexibility for when it does go gangbusters to the downside
- Buy monthly long puts at the retracement point. You can go OTM to get more options cheaper or you can go ATM if you want better theta decay economics. if you are targeting SPY 375, I would enter SPY 370P or 375P
- Buy put debit spreads, likely SPY 380/360 or even 380/365. The short puts will help offset the cost of the long puts and make theta decay easier to stomach. Your profit is capped, but it is unlikely we go below SPY 365, given that is around the -3 ATR range
- Buy put butterflies that are sufficiently wide. For example, SPY 380/360/340 or 380/365/350. 380/370/360 will be the cheapest but are the least forgiving. Remember with butterflies that you have to be right on both the time and the price
Mostly Foggy Recollection
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It can if you're constantly selling premium ATM or slightly OTM. UVXY is meant to be traded a lot and here and there you'll get 10 to 50% spikes then the rare big spike on a large correction.
Learned a lesson on UVXY. Ended up holding much longer than I should have. Finally got back to the point where I made a small profit.
Mostly Foggy Recollection said:
It can if you're constantly selling premium ATM or slightly OTM. UVXY is meant to be traded a lot and here and there you'll get 10 to 50% spikes then the rare big spike on a large correction.
as choppy as this market is between levels, you could go with SPXS or SPXU shares (bought at a top like 392 to 395 area), then sell some on a pullback like this one. I've had similar luck in the past doing that with SQQQ shares.Jet Black said:
Learned a lesson on UVXY. Ended up holding much longer than I should have. Finally got back to the point where I made a small profit.
depending on what tomorrow brings, holding a little of the above over the weekend helps me sleep better at night!
$30,000 Millionaire said:AgsnFly said:Ragoo said:
How impatient with losers are you?
Very impatient. I will not take a loss greater than %.05 of my account size. For open profits it gets way more relaxed but usually a mental trailing stop loss not to exceed 20% of the high water Mark on the trade. I have a rather large account so it forces me to have hundreds of positions (plus many futures positions) but it works for me. The most important thing for me is to protect my account profits. I do this by not taking losses against my large gains. Never give up the gains you have made - never think in terms of playing with "house money".
2% here and I get very fussy when it happens
For Agsnfly and 30k - when you talk about these max losses does that include accumulation or longer term holds? If so are you able to stay in these buy position sizing so that the individual equity would have to show a major (50%+) loss in order to pull your account 0.5 - 2%?
Mostly Foggy Recollection said:
It can if you're constantly selling premium ATM or slightly OTM. UVXY is meant to be traded a lot and here and there you'll get 10 to 50% spikes then the rare big spike on a large correction.
So I buy 100 tomorrow mornin at, say, $10.25, then sell 3/5 $10.5c for $1.30...then just repeat each week to replace call or buy more? Is that what you are suggesting?
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