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

[NilesMike]

Sold T 30C 19/FEB for $40

Sold KO 50C 5/FEB for $34

[MikeWa]

(01-15-2021, 03:07 PM)fenders53 Wrote: -Sold a PFE strike 37 put expires next Friday for $63.  I have a few more sold in the 36.50-37 range.  This is an ex-div play for the week after.

How this worked for you? I had sold put like yours and got assigned yesterday. Not sure how this works, but considering PFE price as of yesterday, whoever sold me 100 shares of PFE lost approximately $60 on this transaction. And this doesn't even take next week div into consideration.

[fenders53]

(01-23-2021, 10:53 AM)MikeWa Wrote:

(01-15-2021, 03:07 PM)fenders53 Wrote: -Sold a PFE strike 37 put expires next Friday for $63.  I have a few more sold in the 36.50-37 range.  This is an ex-div play for the week after.

How this worked for you? I had sold put like yours and got assigned yesterday. Not sure how this works, but considering PFE price as of yesterday, whoever sold me 100 shares of PFE lost approximately $60 on this transaction. And this doesn't even take next week div into consideration.

Very well the past few years with about a dozen income stocks.  I have my PFE buy and sell range for puts and calls. It sounds like it matches well to yours.  I rolled a 37 put forward.  Left the 36.50 to be assigned yesterday but it didn't happen as it closed at 36.55.  I put myself at risk of assignment near ex-div if the share price is where I like it.  I sold calls on all my PFE shares when it was near $40 but they all expired worthless over the past month.  Too low to sell any new calls now IMO.  

Not forcing trades is important.  It's why I track at least a dozen income stocks because only a few may make sense for new shares any given week.  I gradually buy shares of growth stocks with my income rather than DRIP lately.  I tell myself over time I recover some capital appreciation these income stocks won't likely deliver.

[vbin]

Closed a bunch of pltr puts sold for 60-80% profits. Sold pltr calls.

Bought pltr puts for Feb 26th( lock in expiration play) 4 times more stocks are expected to hit the market.

Has anyone played earnings buying both weekly calls and puts? If the stock moves big the gains could be multi fold. If stay flat, the position can be closed.

I bought weekly calls on both intc and ibm to.play the earnings thinking 1 should do well but both went down 10%. I actually had bought a put on ibm too but I closed it before earning thinking it should be fine but the old machime went down. Thats when it occurred that if I would have kept the put as well. I would have made 5 times my investment, lol.

Thoughts?

[NilesMike]

(01-23-2021, 08:16 PM)vbin Wrote: Has anyone played earnings buying both weekly calls and puts? If the stock moves big the gains could be multi fold. If stay flat, the position can be closed.

I bought weekly calls on both intc and ibm to.play the earnings thinking 1 should do well but both went down 10%. I actually had bought a put on ibm too but I closed it before earning thinking it should be fine but the old machime went down. Thats when it occurred that if I would have kept the put as well. I would have made 5 times my investment, lol.

Thoughts?

If it moves big enough to overcome your purchase price and the vol crush, you can make money. Otherwise you are toast.

That is the volatility crush and is what is usually the play for earnings.

Because IBM dropped, the volatility stayed up or increased, that is why you would have made money along with being directionally correct.

It is tough be long options for an earnings play. If you buy some with longer duration, you have a better shot to get out with some $$. The weeklies go POOF.

[vbin]

How long far? I did burn some money on amazon recently. Volatility was too much. With a minutes 1k profit to 2k loss.

[NilesMike]

(01-23-2021, 09:54 PM)vbin Wrote: How long far? I did burn some money on amazon recently. Volatility was too much. With a minutes 1k profit to 2k loss.

How long is the conundrum, no cut and dried answer. For me, earnings are just a roll of the dice and I usually trade after earnings air is let out.

Right now, I would buy a call vertical in IBM. 125/130 19MAR for <1.00. 125 is half gap fill and 130 is gap fill.

If it goes in your direction, very good percentage returns on a conservative trade.

[NilesMike]

Even more "forgiving" is buying a call butterfly
19MAR +110/-(2)115/+120
.90 Debit but still collecting mucho decay on the 2 sold ATM

[fenders53]

(01-23-2021, 09:54 PM)vbin Wrote: How long far? I did burn some money on amazon recently. Volatility was too much. With a minutes 1k profit to 2k loss.

You just summed it up right there if the underlying is volatile like earnings can bring.  You can protect yourself further and of course give up the get rich quick part of it.  

And you get one warning point for posting this on the conservative options thread.

  kidding.

[vbin]

(01-24-2021, 08:07 AM)fenders53 Wrote:

(01-23-2021, 09:54 PM)vbin Wrote: How long far? I did burn some money on amazon recently. Volatility was too much. With a minutes 1k profit to 2k loss.

You just summed it up right there if the underlying is volatile like earnings can bring.  You can protect yourself further and of course give up the get rich quick part of it.  

And you get one warning point for posting this on the conservative options thread.

  kidding.

That was an agressive trade which I wanted to see if can be converted to less agressive, lol.

I think another way to play is just sell put on FB. The premium is ~ 4% for 1 week. I think this will go up( mutual funds buying agressive for earnings.). If the stock does drops, I am ok holding it for growth and then sell covered calls.

[fenders53]

(01-24-2021, 01:07 PM)vbin Wrote:

(01-24-2021, 08:07 AM)fenders53 Wrote:

(01-23-2021, 09:54 PM)vbin Wrote: How long far? I did burn some money on amazon recently. Volatility was too much. With a minutes 1k profit to 2k loss.

You just summed it up right there if the underlying is volatile like earnings can bring.  You can protect yourself further and of course give up the get rich quick part of it.  

And you get one warning point for posting this on the conservative options thread.

  kidding.

That was an agressive trade which I wanted to see if can be converted to less agressive, lol.

I think another way to play is just sell put on FB. The premium is ~ 4% for 1 week. I think this will go up( mutual funds buying agressive for earnings.). If the stock does drops, I am ok holding it for growth and then sell covered calls.

I like that trade a lot better.  I know you have high conviction in FB long-term.  I preach too much but I just don't see a reason to place a big bet on any stock you aren't a little passionate about.  I spend a lot of time messing with extremely boring stocks on a dip like WBA,KO and T, but I do just as well or better selling puts on stocks like MSFT, HD, GNRC.  Stocks that have a little more room to fall if things get rocky.  

And you can convert any trade to something more conservative.  There are very well tested mechanical methods.  That's the easiest way.

[NilesMike]

Looking to buy a PUT spread on NEE this morning.

85/80 19MAR for $2.15

Target sell 2.80

Stop sell 1.10