Conservative option strategies, what did you buy or sell today?

[NilesMike]

(11-13-2019, 11:15 PM)fenders53 Wrote:

(11-13-2019, 07:55 PM)NilesMike Wrote: Getting some love on DE

If I wasn't distracted this morning it would be closed while I am still ahead.  I closed most of my puts a few days ago.  Waiting for the dip that never comes for the next round.  Selling CCs continues to be my nemesis with the everlasting bull run.    Just have to take the good with the bad in an income strategy.  The income has certainly been there.

Whether the DE spread works out or not, you were right it wasn't a great idea at this time.

Right? Wrong? Who knows but I just am never comfortable calling tops. Futures are up nicely as I write.

[fenders53]

I know you well enough to know that would be your response.

Short of a very disciplined DCA strat (which I should employ on a few core long holdings) , most every strategy I employ is an attempt to determine an approximate top or bottom. I don't have to get it perfect, but I don't just randomly sell puts or calls at any valuation or point in a stock's trading range (if it has one).

I would never sell a spread on a significant number of stocks at the same time, but a few serve as a hedge to my overall port. No matter if the market crashes or flies to the moon, I always have something making money to temper the overall ports volatility. Anyway the DE trade represents a miniscule amount of my port. Just one contract, which made it barely worth the trouble of following the price almost daily. MAX loss potential $300. My port usually swings that much in the time it took to type this post and that is no exaggeration.

On another subject, I am going to be a put selling madman next week as I am about to get exercised on quite a few CCs today. Some have just ran too high to make it worth the bother to roll them forward.

[NilesMike]

(11-15-2019, 06:49 AM)fenders53 Wrote: I would never sell a spread on a significant number of stocks at the same time, but a few serve as a hedge to my overall port. No matter if the market crashes or flies to the moon, I always have something making money to temper the overall ports volatility.

Great advice.

[fenders53]

It is for a person in my stage of his investing life. What I do now, and what made sense 20yrs ago differs greatly. The lack of context on forum post isn't helpful to others, and the reason I probably type too much justifying my strategy.

[fenders53]

And DE gets a downgrade on expiration day. I can't believe everybody didn't know that was going to happen lol. They should outlaw analysts calls after market opens on expiration day. It smells some imo.

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[fenders53]

Went short on a couple DE contracts the afternoon before earnings, and two days before expiration. That's not particularly conservative but DE running up with the market before the earnings report was the height of insanity with the macro situation. It boggles my mind anyone could believe that earnings call was going to be positive.

[fenders53]

I continue to get lucky with my put sale timing. I sold a DEC 27 BA 325 strike put on Friday and today brings good BA news. The market thinks so anyway. But lets not talk about my covered call selling. I clipped my own wings WAY too many times in 2019. I wish someone had warned me the market was going up every day for months at a time.

[Otter]

I have decided to try my hand at living dangerously. Considering buying a March 2021 TSLA Put with a $300 strike price.

[fenders53]

(01-09-2020, 10:10 AM)Otter Wrote: I have decided to try my hand at living dangerously. Considering buying a March 2021 TSLA Put with a $300 strike price.

My last 500 or so option positions have been sales because I insist on being the house, but I have to admit that sounds like fun.  If you are a stock market addict, you have no choice but watch the TSLA show.  I just don't know what to think anymore.  There is no doubt TSLA is insanely overvalued, but Elon is keeping the dream alive.  The China move was smart.  It will keep the show going a good while longer.  The cult reminds me somewhat of the bitcoin crowd.  They overall market doesn't rattle them much.       

On another subject I have effectively shorted DE about five times the past few months.  Not really a short, but a vertical call spread so the potential loss is very limited.  I'm only profiting about $100 to $250 so not a big bet.  I got out a couple days ago and won't re-enter unless it runs on the trade deal signing.

[Otter]

Hehe. I went and did it. TSLA Mar 19 2021 300 Put.

Looks like I'll be spending at least part of the next 14 months at the Roulette table.

[fenders53]

(01-10-2020, 10:45 AM)Otter Wrote: Hehe. I went and did it. TSLA Mar 19 2021 300 Put.

Looks like I'll be spending at least part of the next 14 months at the Roulette table.

It will surely be volatile. You'll have to contemplate your exit strategy.  That's the tricky part with option buying as time is not your friend.  You've now had a good look at how far it can run up or down in a few months.  I'll put your option on my watch list. 

[Otter]

(01-10-2020, 10:58 AM)fenders53 Wrote:

(01-10-2020, 10:45 AM)Otter Wrote: Hehe. I went and did it. TSLA Mar 19 2021 300 Put.

Looks like I'll be spending at least part of the next 14 months at the Roulette table.

It will surely be volatile. You'll have to contemplate your exit strategy.  That's the tricky part with option buying as time is not your friend.  You've now had a good look at how far it can run up or down in a few months.  I'll put your option on my watch list. 

Yeah. I don't even really consider it an investment (am willing to risk the entire stake, otherwise I wouldn't have bought it). It is an entertainment expenditure. I've badmouthed TSLA financials for a long time. Figured I ought to have some skin in the game. Emphasis on game.