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

[pdaignau]

(01-06-2021, 06:52 AM)NilesMike Wrote:

(01-05-2021, 06:43 PM)pdaignau Wrote:  
It seems, because AT&T was in the middle of a range and/or it was a "boring income stock", you simply bought PUTS and CALLS surrounding its current price.  Then, when the stocks price fluctuates enough, you close out positions for cheap.  I'll have to see what your thinking is on rolling these forward for small losses.

My quicky-and-easy take-a-way would be to watch the two Cash Secured Puts (CSP) I wrote for Feb. 5th for an opportunity to close them out for a fraction of the cost I made.  If lucky, I could free up my cash sooner allowing me to write more CSPs.

Thank you for sharing,
Paul

At the risk of sounding like a jerk, you need to tighten up on your usage of the terms necessary to understand what is going on with options.

I don't believe Fenders ever BUYS to open an option position. So, he never-"you simply bought PUTS and CALLS surrounding its current price." And if you bought something, you never want to-"close out positions for cheap."

When you sell to open, you receive a credit not a cost. "My quicky-and-easy take-a-way would be to watch the two Cash Secured Puts (CSP) I wrote for Feb. 5th for an opportunity to close them out for a fraction of the cost I made."

One really needs to understand this or you WILL get so tangled up. I mentioned earlier that people overcomplicate options, it's only long or short, puts or calls. You must grasp what those things mean.

I know it may have been misuse of the words but when you have skin in the game that imprecision will cost you.

You won't offend me unless I feel you are purposefully being mean or demeaning.  I do appreciate your concern about precision and being burned.  I have a decent conceptual understanding of options, but when it comes to practically applying or writing/talking about them it takes me some time to think through all the details.  Hopefully I'll get better and faster at this and figure out the standard language.

To put you at ease, I won't put any money down without a calculated plan or intent.  Plus, I know, you sometimes have to lose a little to learn (a lot).

Thank you,
Paul