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Not a problem. I focus mainly on options. The profit margin is just more rewarding than straight shares when you commit to it aggressively and safely. Glad it helped.
I see. So you're not following each sale with new straddles. (ITM on both legs. Strangles are OTM.)
I always protect myself. Otherwise we're sitting at a roulette table gambling.
But glad it worked out for you regardless.
We're set for another rally. The most intriguing thing is the lack of movement in the after hours. This isn't normal. With many sectors seeing a good boon of some recovery this week, I can imagine this will ride those tailwinds.
Again I could care less which direction it moves, but it's definitely changing in how this stock reacts through the midday. It's only momentum feels like pre-market, opening bell and 1 hour after.
Of course I don't mind when it's this predictable.
Hope you did well today :)
Typical corrections. Riding puts right now with the usual orphan call. How did yours turn out?
You're looking pretty for the day. :)
To me, this is definitely sideways trading for a stock as volatile as Tesla. The calm before the next big storm. Being able to squeeze out a profit amongst this is just magic in and of itself. Excited for whatever the next big move it makes.
Hardly ever get to see it trade like a normal stock. 100s-120s as stable ground. If it doesn't break below 114 tomorrow, it really has potential to be 130 by mid next week or sooner.
I never hold the day of expiration. For you start looking at next week to reopen new positions. I usually do this on Thursday as I close out old positions.
Alright. So you're still retaining roughly... 65% of the investment into a bull run I assume. Tomorrow is as good of a guess as any after today's movement. No clear indication yet as to which way the overall market will go. I took the slightly small call "profit" on the midday correction and reset my own positioning to match my sentiment as such.
I still call it a profit because it leveraged my sentiment towards a correction once I felt I saw today's bottom.
Good luck on tomorrow. As always sell the trend, and prepare for a reversal. I hope this method works as well for you as it does for me.
Right. And no problem. Just remember to keep it realistic. Only dating the options. never marry them.
Happy with the return on the calls. Selling it off and resetting it all for tomorrow. 119c and 115c sold. 117p and 117c (matching the amount I have on the put to protect myself and limit how much of my time is spent staring at tickers.) Checking out here. You all take care. I'm running with the profits.
Ok for you to follow where I'm at now. Sold the 114p and 123p. Sitting on 115c and 117p (and 119c from earlier) Will set up for the next week on Thursday. Every swing brings these valuation.
Everyone here is playing checkers. One move at a time. Play chess. Think 3 moves or more ahead. I'm done helping after today though. You guys can figure the rest out.
And? I think this morning proved my point.
Had 114p still from Friday that I never sold and protected my investment 9n the original 110c. So the 114p and 123p did nicely today in spite of my 119c. Do you understand the process now?
Why sell the call now? Sell the put and open a 50/50 spread on this new mark. Both ITM. You're not understanding that corrections are how I make my money. Why sell the worthless one when a correction turns it valuable?
I buy the trend first. Then the counter. Both at market. It all moves too quickly to try to get precise limits. I wish I could say I do this that perfectly, but I'm not here to play pretend. In this example, calls were still trending when I made my move. So when I sold my 110c, I picked up 119c first with half, then 123p with the other half. Both at market so they'd execute quickly and didn't leave me scrambling to cover.
Maybe not? :) might see more upside with this resistance.
Like clockwork. Here comes the correction.
Sold all of my 110c from Friday. Reestablished myself 50/50 on 119c -123p. Still have the 114p. I'm ready for another wild ride in either direction.
Ok, so you're debating on ITM vs OTM. There's a reason I voice against it. When you near the expiration, the likelihood of being hung by time decay: Theta will chew up your investment. Exposure to expiration on worthless contracts are exactly why they're so cheap. Hence why I keep referring to them as Homeruns. You may as well go for 80p and 150c. You're employing the same recklessness that destroys every portfolio who attempts options.
The next correction, you will sell old and new puts on the dip. That's the design behind this. The call you reestablished is in the event that your pivot was incorrect.
Yeah. And always reset after selling the profitable leg(s). Golden from there.
Hedge your bets. Markets always correct themselves.
Now I do puts and sell half of the calls
About 20minutes after opening bell look for a correction, sell the profitable leg, then restake on that new mark. Hold for new correction. If it doesn't appear to be stalling, wait.
Reverse that. ITM. not OTM. You'll kick yourself in the rear by Friday if you keep going for homeruns OTM. 115c and 119p if you're going at opening bell.
1week chart has us past the 200MA and the 1M chart has us up past the 50MA. with consolidation over the past week and no new tragic news, bottoming resistance all known, it has to bust past 112 today to reverse this uptrend. Possible, yes. Likely? Not in my educated guess. This embattered stock needs upside correction and a rally before it sees another new low. Good luck to all. I'm going to be slow on picking up my counter puts today.
Even Dogecoin went green for the week. Made decent money from a spur of the moment Saturday buy.
Expecting a green opening bell.
Watch dow futures right now for insight on the heartbeat of the market before it opens. This gives insight to overall trends before looking at an individual stock.
It's reminiscent of the run in May from 209 upwards through to September.
102 is definitely beginning to look like the true bottom. Consolidation trading this week. Tesla always surprises, but I'm looking at a potential green week coming up. You all read my strategy. I don't care either way it goes, but after studying everything available to us, analysis wise, for those of you who only play long, this might be the meal ticket.
I'm punching out here. You gents and ladies have a wonderful weekend. Good luck in your futures. Invest smarter and not harder. :)
Yes. And sell off one leg of it when that leg is profitable, and open another one at that mark.
Do some notebook trading for awhile. Jot down what the calls $1-$2 below the strike are, (ITM) and puts above $1-$2 above the strike. (ITM). When it shifts wildly again, refer back to what they were and what they become. The premiums will shift with it. You can try to go OTM again, but fair warning, it will burn you if you're not watching it close and ready to dump then at the pivot points or when you feel it's a good point to reposition. Feel like I should make a YouTube video on this, but then some fed regulation will spawn and screw with the options market... Fed regulation T was and is still a joke. Hurt so many small investors.
Got ya. Yeah. You were hunting for homeruns. Think of this as... and I'm coining this comparison right now lol. Vanity... as a "Ground rule double." While new investors get burned on homeruns, RBI's win baseball games.
Just to help you further, this tactic works for biocatalyst pharmaceuticals, spy, hell I've even been effective in making it work on Starbucks. Earnings reports calendars. Dividend payout dates, or any large news event, (like GME when it went absolutely crazy.) Just don't try it on something like a gold ETF or vanguard. You're better off just burning your money now. Lol.
Right, and this simple risk management tip eliminates the worst part of that risk, effectively exploiting the volatility. I don't invest in the business. I rewired my thinking towards only investing in volatility.
I sold off my puts on the dive, but not the calls, then flipped the profits into 102 calls and 105 puts 50/50 from the put sales, for next week. Correction occurred. The calls are now also profitable again. Selling those soon close to $112.00 then restaking it all likely around 110c and 114p for next week.
The point of it all is that your worthless options regain their value in the inevitable Correction. That's where the largest chunk of the profit begins to be realized.
They do, and that's exactly why I posted the advice I did. It's exactly why I trade this way. Hedge your bets and trade both ways. I don't lose any money this way except in a stale market.