Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I took today off from the markets. Looks like puts should have come in with profit. I bet calls should become profitable next week before the March 1st extravaganza. I have to tell you, if I was here during the market, I would not have given you advise on what to sell or buy. That’s a no no on message boards. Only licensed brokers / professionals should do that, and they are not allowed on these boards. Hope you did well. TSLA
I don’t keep track of trades like that. I start with X amount, end with X amount, and whatever value is left in the “ worthless leg”. They are all market orders, so no looking for a better entry. Hopefully end of day amount is larger than beginning. I have not been paying much attention to actual cost and profits. Just looking at exits and entries. Sorry if I couldn’t be more help. TSLA
Thanks Moon. I will only do one contract, but it’s all proportional. Profit is the name of the game. This is the best neutral strategy I have come across. Most people, myself included, hate to but ITM options. More expensive, but time decay and positive results are on your side. When the stock moves, so does your delta / money upwards. Thanks again. TSLA
Hello Moon. I have to say, today was a perfect example of why your system works.I had 195 c / 200p at open. This was on paper. Did 2 different scenarios. Trade 1: Sold above 200, 195c . Bought 197.5 c/ 202.5 p. Trade 2: did not sell call and rode it down to 192. Sold puts on both, and Bought 190c / 195p on both. Rode both up to 200. Sold calls, reload at 197.5 c / 202.5 p. Left it at that. Trade 1 made a little more, but both took advantage of the whip saw effect. Almost 8+ dollars each way. Going to use real money next week. TSLA
Futures are green at the moment. Nasdq 50. We shall see TSLA
So this means “ Whales” are invited to buy class D Reg offerings. I don’t think many of us retail buyers will qualify. I may be wrong, but if a company R/S, Reg D share holders are protected from it, since they can only sell or buy from each other. In any event, I think it’s a good thing, because the company believes they got a big winner here. Waiting on next financials. INND
No, I should have but didn’t. Every time I sold an option, I opened a new position. Was just practicing my speed of netting a position. Pretty sure they were profitable. Only way I can do this is to only do 1 contract at a time, as it will take a lot of money to keep buying positions. Avg cost got to be 1500.00 to 1800.00 a straddle. Just looked at a 198 pps. For 2/24 straddle: 195c / 200p cost 17.45. TSLA
Sorry, meant post for Tsla fan.
Did you sell your puts with the drop down to 210 ish?
Good for you. Hope it works out TSLA
I have been reading your comments about applying limit orders instead of market orders. If you use a market order, you are in right away, instead of waiting to get filled. Sure more expensive, but the idea is to get in at that moment, to go up or down. Doesn’t matter how much you paid , because the call or put Will immediately go up in value. By the time the pps moves back and forth and you get filled, you already missed the move and your sitting there with a better fill because of decay in the option, but no profits if you had rode the pps up or down . By using limit orders you can’t do the moon strategy correctly. Now if you are doing a swing trade, say 3 months out, than getting a good limit fill might be fine, but moon’s strategy is basically day trading. Get in, get out fast so you don’t miss the move. Hope you don’t take this post the wrong way. GLTY TSLA
So , sold the 207.5 call at the open around 213.00. Held the put. If I was to continue, would have bought 212.5 c and 215 p. Sold original put around 208, and would have sold 215 p. Held 212.5 c. Would have bought 207.5 call again and 210 p. Watched it slowly rise to 214. Would sell 212.5c and 207.5 c again. Held the 210 p. Had to stop here. This was all on paper , but would have been pretty profitable. All one needs is enough money to play continuously all day. Don’t have a day traders account( 25k), but I could still do this if I just play 1 contract at a time. Will give it a try next week. Thanks Moon strategy. TSLA
207.5 c / 212.5 p. Got this at the close. I am still paper trading. This will be my last one. I know at the open, it will move big, one way or the other. Or at least within the first half hour. Resetting after my first sell is what I have to fine tune. Or is it as simple as straddling the pps that I sold the option at? It looks that way. TSLA
Well, on paper 192.5 c / 197.5 p. Sold put 190.0. Sold call 198. I bought yesterday afternoon and was down going in today, because it traded sideways. This trade would have wound up profitable. Obviously opening bell gives you a lot of volume. I think I will take a paper position just before close. TSLA
I’m in. Waiting on annual fins and audits being done at the same time. End of March would seem to be enough time for that to happen. Looking for great revenue and audits done March 31st. Not like I am asking for a lot. Both should happen by than . INND
Looks like the Moon trade today was @ the open to 11:00 am. Wasn’t here for that. See what happens tomorrow. I am still holding the strangle from this afternoon.( on paper). Should move in the morning first thing.
Anyone know if we are getting first quarter report due February 15, or can they holdback till annual due March 30th I believe. Not sure. TIA
Sideways trading. Consolidating. Up and down getting narrower. Gonna break up or down soon, looks like. Got 192.5 call and 197.5 put, on paper. Price 17.00. Let’s see what happens.
Using OTM options for the “ Moon Strategy “, does not seem like a good idea. The delta is much higher on ITM options, thus allowing a quicker/ greater price appreciation. When you take a profit, the other option winds up OTM, but not as far as if you started there. And in the event of pps reversing, will recover faster than if you started OTM. I can see why you need very high volatility for this to work. I used OTM options 3 times on paper, and 1 time buying options at different times , basically chasing the price, resulted in losing money. Going to try some paper trades, at different times of the day, ITM options, to put it to the test. Going to Doctor this morning, so can’t do anything till later. GLTY TSLA
Moon, just read this post a couple more times. From what I can see, even if I take profits early, the new straddle takes over from that point. Also, it seems you leave the old leg and start the new straddle fresh. Okay, I will stop now TIA
Hello again Moon. Apparently I have been doing the exact opposite when i did some paper trades. Been doing just otm puts and calls. Example: pps 200, call 205 and put 195. I have done this 3 times. I can see why your strategy, even much more costly, is more reliables for a profit. Mine not so much. My biggest question: do you play pivot points , MAs, old resistance and supports, etc. for an idea when to take profits, or just watch when the stock is starting to reverse, which in itself is hard. I have tendency to take profits early. But when I do, using my strategy screws me. Next week ITM options. On paper first. Oh yah, one more question. You are always adjusting your straddles, as in, building a new one and leaving the leg from the old one, or rolling it over in your new one? Thanks for indulging me. Grasshopper only seeks knowledge. TIA
So just before close, I bought C 230.00 2 /17 exp. Even though pretty far OTM, delta moves up quick when pps runs 5 to 7 dollars in minutesWill sell tomorrow if it pops at open. If it doesn’t, will buy some puts for insurance. The trend is up, and I used to try to out smart it by going against. I do both puts and calls, but at different times bought. Going up AH already. Next week i may do a true straddle if volume stays hot. Right now last 3 days have scalped nice profits right at the first 20 minutes or so. Love the way this is trading. TSLA
Amen to that. TSLA
I didn’t do a straddle, but did buy put insurance at 202. Are you in 2/10 options?
Where did you get in today? I got 212.50, yes 2 / 10 exp. Went against my rule. Bought the dip at 206 and got out 212. It will probably go to 220 now that I am out. What tremendous volume. Moon must be back in.
So your new order is also for 2 / 10 options? You might get it at 8.00 if it trades sideways for awhile. Myself, I would be Leary of this weeks options, as just a little over 2 days is left. GLTY
Yes, I agree. I would not have used 2 /10 options, starting today. My rule on weeklies is current week only to Tuesday, than go to next week after that. Decay will get you, especially when volume slows down. Was just curious what options were being used. Today I got out too early again, still made a profit, but left some on the table. Hey, a profit is money gained, no matter how much. TSLA
I meant expiration. Sorry
Tsla fan, are you using the 2/10 expectation options?
Good morning Moon. I sold my calls a couple minutes after open. I am staying out the rest of the day to reset. Do you buy your position at the close usually? I think I read that at one point. TIA
If / when we gap Monday, could be tough to get in at your limit price. You may have to do a market order. This could run right off the bat, due to Elon’s court victory. But I’ve been wrong before. Many times. Lol enjoy the weekend. Monday will come soon enough. TSLA
Hello Moon. After Fridays whip saw action, I will make sure I have both ends covered. Buying both at the same time is going to be different for me, but I can see how it would be beneficial, especially when the stock moves like TSLA does.
I did okay with my trading this week, but left A LOT of profit on the table for one reason: I did not buy puts when I should have. Even when you are correct on the direction, disaster can strike in a blink of an eye, especially on high volume, and expiration day. Once again I said to myself, why waste money on puts. I will sell when it tops out. When it started dropping I thought it would bounce back, like it did all day. Wrong! Went down 5.00 bucks before I pulled the trigger. Puts would have evened out the fall, and nullified my incorrect emotional thoughts. The more I read Moon and your posts, the more I need to actually apply the neutral 50/50 trading approach, and take out my high risk/ reward. Have’t done paper trades in a long time, but will do a few to test. Right now I have 202.50 calls. Too far otm for this strategy. Will buy some puts at open. Just below opening pps. Need to clean this up and start over. GLTY. TSLA
I hear you. You make a good point. My next order , I think, will be a combination at the same time. Will let you know how it turns out. GL , TSLA
Yes. Chart says pivot points are: 186; 192; and 200 for today. So almost to 3rd resistance. TSLA
Hello tsla fan. So at the open I sold the 192.5 for a nice profit. I sold my puts yesterday for a substantial loss. I already bought 202.5 calls for next week.I like to buy 10 contracts at a time. So you buy them at the same time, puts and calls. I usually wait to add the other leg. But you know what? Buying at the same time, a true strangle or straddle seems more prudent, a better neutral strategy. How many contracts, if you don’t mind saying, do you usually buy?
I have been doing the same type strategy, though not as well. I have 192.5 calls, and sold my 165 puts for a loss. I was too far otm when I bought them, as premium was being sucked out for the last 2 days. Hopefully we will have an up day tomorrow. Meta hit it big after hours. If you don’t mind saying, do you buy close to, or in the money options? TIA, good luck tomorrow. If we hit 190 I am golden
Nice call! 98.00 close enough!
DG, any thoughts on CPI numbers tomorrow, and what they may do to pps?
You are spot on about audits. Let me interject an observation that is becoming irritating. There is a lot of continued, let’s say, bad mouthing about the company selling shares to enrich themselves. This couldn’t be farther from the truth. As far as dilution goes, that’s what is paying for acquisitions, and advertising. This is what real companies do. Also, real companies are audited. The share selling narrative of self enrichment is at least 5 years old. It is not what is going on now. 2023; everyone who is reading this knows what that year is going to do. INND