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wanderer
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7:07p, 8/19/21
Months back OA posted about his 'better than a CD' strategy for SNDL. (https://twitter.com/oldarmy1/status/1408445489788370952?s=20)

SNDL is certainly not in a position to sell calls and have the same effect, but since it has dropped it seems that you could achieve a very similar effect with a bull put spread.

Selling the 1/21/22 $1p and buying the 1/21/22 $.50p would net you .35 credit per spread. For every 10 spreads you sell you pocket $350, with only having a $150 hit to your buying power over that time. You could of course just sell the $1p for .44, but that would have a $560 hit to your buying power for the same situation. Worst case come January is that you are assigned the shares at an effective price of $.65 (1-.35). Ticker is currently at .70.



Could also do the same with WWR. The 11/19 $5p/2.5p could be sold for 1.65 today. For every 10 spreads you sell you net $1,650 while tying up $850 in buying power. Worst case is that you're assigned shares in November at $3.35 effective price. Ticker is currently at 3.36 (ouch, hurts to type that one.



These aren't sexy strategies but can be very effective ways leveraging your money and legging into positions for a stock.
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SF2004
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In reply to FJ43 • 7:49p, 8/19/21
AG
FJ43 said:
SF2004 said:
Ok, real quick.

This is where I struggle. At around 440.5 I entered a small trade of 433P. I am crossing 100% return and that would be a successful trade.

BUT... How do I determine if this is the exit? I feel like a leave money on the table because of paper hands.
Just me but if you are crossing 100% return on a scalp I'm taking at least half off the table and trailing the rest with a decently wide trailing stop. That's an awesome trade every single day.

I personally determine my entry and exit based on SR levels, volume associated and EMA trend. Important to know where support and resistance are for entry and exit.
So I left this one on and learned a hard lesson. Turned a 100% winner into ~20% loser.

It wasn't a lot of money (very small) but I'm bummed that I saw what $30K did with the top at ~$440 and a plummet down intraday.

I got greedy and ruined a great trade.

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FJ43
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In reply to SF2004 • 7:53p, 8/19/21
SF2004 said:
FJ43 said:
SF2004 said:
Ok, real quick.

This is where I struggle. At around 440.5 I entered a small trade of 433P. I am crossing 100% return and that would be a successful trade.

BUT... How do I determine if this is the exit? I feel like a leave money on the table because of paper hands.
Just me but if you are crossing 100% return on a scalp I'm taking at least half off the table and trailing the rest with a decently wide trailing stop. That's an awesome trade every single day.

I personally determine my entry and exit based on SR levels, volume associated and EMA trend. Important to know where support and resistance are for entry and exit.
So I left this one on and learned a hard lesson. Turned a 100% winner into ~20% loser.

It wasn't a lot of money (very small) but I'm bummed that I saw what $30K did with the top at ~$440 and a plummet down intraday.

I got greedy and ruined a great trade.



Sorry man to hear this. Don't beat yourself up. I doubt there is anyone on this forum that hasn't let a winner turn into a loser.

Good lesson to learn small. Now you can attack the next trade with new wisdom and this one is in the past.

Next trade!
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BaylorSpineGuy
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7:55p, 8/19/21
I got everyone beat. I sold my Polaris puts at 50% loss (about $500). If I had held, would've sold for about 400% winner today.

That's the bat beat of the week lol. Proud tho cause it means I correctly predicted that head and shoulders like I saw. Just need to trust my instincts.
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KY-AG 10
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In reply to $30,000 Millionaire • 7:57p, 8/19/21
AG
$30,000 Millionaire said:
just my two cents. tomorrow is not really a countable day because of OPEX. it's about max pain. I think we will get some downside action after that


Sorry for being a moron. What does this mean?
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SF2004
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8:00p, 8/19/21
AG
If anyone is looking for a GREAT wheel candidate then sell puts on DVN tomorrow.

This thing has been great to me selling puts and then calls after assignment.

The key to the wheel though is you need to want to own the stock if assigned. Don't sell naked if you are not committed to wanting to own the stock long if it drops.

Crap happens when you party naked.
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wanderer
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In reply to KY-AG 10 • 8:04p, 8/19/21
OPEX is options expiration for month (Friday before each 3rd Saturday in each month).

Max pain is the manipulation that occurs with prices in order to eat the most premium from all the call/put strikes. (I'm sure I butchered that, but hopefully you got the picture)
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FJ43
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In reply to BaylorSpineGuy • 8:22p, 8/19/21
BaylorSpineGuy said:
I got everyone beat. I sold my Polaris puts at 50% loss (about $500). If I had held, would've sold for about 400% winner today.

That's the bat beat of the week lol. Proud tho cause it means I correctly predicted that head and shoulders like I saw. Just need to trust my instincts.
That's tough. But...if you cut at your predetermined risk off level then you followed your process.

I think the two hardest things to master are cutting losers and being patient with gains. Knowing when for each is the trick.

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zagman
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8:28p, 8/19/21
AG
Excited for tomorrow. I've got expiring calls I sold on $3 DPW, $4 Watt, $5 WWR, $10 IMMR, and $12.50 CLOV. Earlier this week I bought back my $2.50 DPW puts for 5 cents that I had sold for $0.25. It absolutely tanked yesterday. Glad I did that and won't be assigned more of that piece of *****
Full Speed Ahead - Fire At Will - Gig'em

"I have never enjoyed any position more than being president of Texas A&M University." Robert Gates 11/08/06
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GreasenUSA
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In reply to BaylorSpineGuy • 8:28p, 8/19/21
AG
BaylorSpineGuy said:
I got everyone beat. I sold my Polaris puts at 50% loss (about $500). If I had held, would've sold for about 400% winner today.

That's the bat beat of the week lol. Proud tho cause it means I correctly predicted that head and shoulders like I saw. Just need to trust my instincts.
I'm sorry to hear that.

I've seen this happen so many times in recent months. I generally keep my stop loss at 50%, and look to start taking profits at around 30%. On more entries than not lately, the 50% stop loss has been raided, only to see a turnaround after that. It's another sign that we're not in a trending market, so with long calls and puts, it's best to take profits as you see them for now.
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GreasenUSA
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In reply to FJ43 • 8:29p, 8/19/21
AG
FJ43 said:


Hmmmmm. She (Pelosi) will be fine. Don't worry.

https://deadline.com/2021/08/three-former-netflix-software-engineers-charged-insider-trading-sec-1234817441/

I don't know why, but I find it kind of fascinating.
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KY-AG 10
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In reply to wanderer • 8:32p, 8/19/21
AG
Thanks. The OPEX I understand. The max pain I'd read about recently actually. Hadn't connected those dots. I'm up to speed now
What is the max pain strike on spy right now?
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gougler08
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In reply to GreasenUSA • 8:37p, 8/19/21
AG
GreasenUSA said:
FJ43 said:


Hmmmmm. She (Pelosi) will be fine. Don't worry.

https://deadline.com/2021/08/three-former-netflix-software-engineers-charged-insider-trading-sec-1234817441/

I don't know why, but I find it kind of fascinating.


If only they'd go after the obvious ones, like our Congress men and women
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KY-AG 10
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In reply to KY-AG 10 • 8:40p, 8/19/21
AG
Nvm. Found it. Looks like 437 currently
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Bob Knights Paper Hands
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In reply to KY-AG 10 • 8:40p, 8/19/21
KY-AG 10 said:
Thanks. The OPEX I understand. The max pain I'd read about recently actually. Hadn't connected those dots. I'm up to speed now
What is the max pain strike on spy right now?


https://sw****stocks.com/dashboard/options-max-pain/SPY

The censored part of the link is tsips name for Aggie.
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ProgN
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8:49p, 8/19/21
Test
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Bob Knights Paper Hands
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In reply to ProgN • 8:52p, 8/19/21
It's a mine field out there tonight. I can't even go to the premium board without getting my blood pressure up.
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ProgN
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In reply to Bob Knights Paper Hands • 9:02p, 8/19/21
Tomas Hermensa said:
It's a mine field out there tonight. I can't even go to the premium board without getting my blood pressure up.
A close friend of mine on TA was banned on a board I've never gone to so I butted heads with a coronabro on there and won. He even posted that he flagged my posts, so I was checking. He lost, I won.
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jimmo
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In reply to wanderer • 9:04p, 8/19/21
wanderer said:
Months back OA posted about his 'better than a CD' strategy for SNDL. (https://twitter.com/oldarmy1/status/1408445489788370952?s=20)

SNDL is certainly not in a position to sell calls and have the same effect, but since it has dropped it seems that you could achieve a very similar effect with a bull put spread.

Selling the 1/21/22 $1p and buying the 1/21/22 $.50p would net you .35 credit per spread. For every 10 spreads you sell you pocket $350, with only having a $150 hit to your buying power over that time. You could of course just sell the $1p for .44, but that would have a $560 hit to your buying power for the same situation. Worst case come January is that you are assigned the shares at an effective price of $.65 (1-.35). Ticker is currently at .70.



Could also do the same with WWR. The 11/19 $5p/2.5p could be sold for 1.65 today. For every 10 spreads you sell you net $1,650 while tying up $850 in buying power. Worst case is that you're assigned shares in November at $3.35 effective price. Ticker is currently at 3.36 (ouch, hurts to type that one.



These aren't sexy strategies but can be very effective ways leveraging your money and legging into positions for a stock.
I'm such a thick head

so for the WWR vertical
you're selling the $5 Put & Buying the $2.5 Put - correct?

and whoever buys the 5$ Put from you, may exercise the option at anytime?
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McInnis 03
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9:15p, 8/19/21
AG
O rly

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wanderer
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In reply to GTIAG09 • 9:15p, 8/19/21
This isn't a lotto, more more of a longer term play on IWM.

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mazag08
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In reply to wanderer • 9:17p, 8/19/21
AG
wanderer said:
This isn't a lotto, more more of a longer term play on IWM.



I've only been saying it for nearly a month.

IWM $200 minimum. Likely $195.
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wanderer
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In reply to jimmo • 9:19p, 8/19/21
Correct, sell the higher strike price, but the lower.

Technically they can exercise it at anytime (although I'm not 100% sure that's true if you execute the trade as spread instead of 2 different trades) but unless it's way under the strike it typically doesn't happen before expiration.
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wanderer
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In reply to mazag08 • 9:19p, 8/19/21
This is a bullish play on IWM, not bearish.
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McInnis 03
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9:20p, 8/19/21
AG
Fyi,

If you've never looked at a 750 period ema on a 5 min SPY chart, you should.....



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SoTXAg09
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In reply to ProgN • 9:20p, 8/19/21
AG
Misbehaving again?
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SoTXAg09
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In reply to McInnis 03 • 9:22p, 8/19/21
AG
What am I looking at?
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mazag08
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In reply to wanderer • 9:23p, 8/19/21
AG
wanderer said:
This is a bullish play on IWM, not bearish.


I'm not bearish. But I'm going to wait for it to bottom before I go bull crazy.
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irish pete ag06
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In reply to SF2004 • 9:29p, 8/19/21
AG
SF2004 said:
FJ43 said:
SF2004 said:
Ok, real quick.

This is where I struggle. At around 440.5 I entered a small trade of 433P. I am crossing 100% return and that would be a successful trade.

BUT... How do I determine if this is the exit? I feel like a leave money on the table because of paper hands.
Just me but if you are crossing 100% return on a scalp I'm taking at least half off the table and trailing the rest with a decently wide trailing stop. That's an awesome trade every single day.

I personally determine my entry and exit based on SR levels, volume associated and EMA trend. Important to know where support and resistance are for entry and exit.
So I left this one on and learned a hard lesson. Turned a 100% winner into ~20% loser.

It wasn't a lot of money (very small) but I'm bummed that I saw what $30K did with the top at ~$440 and a plummet down intraday.

I got greedy and ruined a great trade.



Man it happens. If it makes you feel any better this summer I let this happen too much. The worst one was an NVDA put that I timed nearly perfectly ran to 120% in about 4 hours bounced right off a key support level I had drawn and I just froze and let it run right down to a 50% loss. For my small account it was an absolute disaster cuz I had loaded heavy on it.

I've found I have to use real stops to keep from becoming a slaughtered pig
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Bob Knights Paper Hands
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In reply to jimmo • 9:34p, 8/19/21
jimmo said:

so for the WWR vertical
you're selling the $5 Put & Buying the $2.5 Put - correct?

and whoever buys the 5$ Put from you, may exercise the option at anytime?

Yes and yes. But they rarely do because they could likely sell it for some premium above the stoke less current share price.
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ProgN
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In reply to SoTXAg09 • 10:00p, 8/19/21
SoTXAg09 said:
Misbehaving again?
Y'all know me by now.
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$30,000 Millionaire
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10:24p, 8/19/21
AG
For whoever was worried about FOMO or whatever. I've blown up thousands of trades. It's part of the game.

I've turned winners into losers and I've let losers become maximum losers. I've also sold winners too early.
You don’t trade for money, you trade for freedom.
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jimmo
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10:53p, 8/19/21
Thanks Tomas & Wanderer
maybe I got it now.
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FJ43
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3:58a, 8/20/21

Mornun!

A bit red on futures and early prints.
EU mostly red.
Asia mostly red.



VIX jumped back up to almost 24 so be careful today.

Lotto Friday. I have a breakfast to go to this morning but posted Theta's picks and will post Benkiller's shortly. I will also see which overlap on my list as well.

If you play them take profits quick.

With OpEx today I would expect lots of back and forth.

Lately this is about how many trades have been....



Trade wisely!

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FJ43
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3:59a, 8/20/21


Benkillers list of lottos

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