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(06-08-2022, 07:17 PM)NilesMike Wrote: (06-01-2022, 09:42 AM)NilesMike Wrote: STO
MO 17JUN 52.50 put for .89
If it gets put to me, dividend of .90 June 14
Looks like Morgan Stanley is going to put more MO to me. 
I've been out of MO awhile. Missed the last 5% of the run. Sold a new put yesterday but just one until MO settles down. Selling oil puts is still 80% of what is going well. Not stretching that any farther than July 4th without heavy meditation. Most of my open options are so far out of the money now they look safe but we never know.
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Bought (oh my) SPY C spread 27JUN22
377/385 for turnaround Tuesday. Looking for 50% in a few days.
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Got out with 30% before FOMC
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Anatomy of a bad trade. My final single name option trade, indices only going forward. Too much risk w/single name.
June 1 MO is $54, sold a 52.50 put figuring it will hold up going into dividend. Not so much, it tumbled and got assigned, price at the time was 45. Not good, not horrible, I'll hold it and sell call(s). Sold a 47.50 call, total collected premium from put and call was around $1.40 so I'll continue to fight, it was small(thankfully) size.
FDA comes out today and FLUUUUUUUSH.
Final lesson, well learned.
Good luck to all.
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(06-22-2022, 07:59 PM)NilesMike Wrote: Anatomy of a bad trade. My final single name option trade, indices only going forward. Too much risk w/single name.
June 1 MO is $54, sold a 52.50 put figuring it will hold up going into dividend. Not so much, it tumbled and got assigned, price at the time was 45. Not good, not horrible, I'll hold it and sell call(s). Sold a 47.50 call, total collected premium from put and call was around $1.40 so I'll continue to fight, it was small(thankfully) size.
FDA comes out today and FLUUUUUUUSH.
Final lesson, well learned.
Good luck to all.
I had a put open on MO as well. Not as high as yours but I got bit. I am having my worst put selling month ever. Oddly enough, mostly on ETFs. I leaned into oil a little too hard. I sold WAY out of the money and a couple weeks out. Didn't matter. I can not believe how hard it fell on no big change in fundamentals. Your point is taken though. An oil index is highly likely to bounce some from way oversold. MO? It could be 6+ months of churning around low. Individual options are especially risky now but some of the analysts estimates are still stuck in 2021 and need adjusted down 25%. The market never likes that.
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So quiet in here that I thought I'd post today's trade. I put this on every 30ish days ( I like to use a down day). Ties up between $500-1,000 margin. Generates $50 income with the potential for the rare big hitter if it expires within the "bear trap"
/MES
Bought 3810P, Sold 3760P (50 point wide) Sold 3690P
Net credit $10.25 x /MES multiplier of 5 = 51.25
90% probability of expiring OTM but actually plays out much better.
EZ to manage as well.
Stole the trade idea, it's the 1-1-1
Good luck and happy holidays to all here.
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It’s been real quiet here
I sold a few puts here and there for the stocks I am ok to hold
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I've been considering selling some covered calls on a (small?) portion of my MO. It feels blasphemous, I know. It has so many DG fanboys, and any time someone expresses concern (over on SA mostly), they're met with a wall of "of course MO is fine how dare you even mention it." But I'm losing confidence, and calls will help me generate a little extra from the position while (likely) trimming it to a size I'll worry about less...
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(11-28-2022, 08:42 PM)NilesMike Wrote: So quiet in here that I thought I'd post today's trade. I put this on every 30ish days ( I like to use a down day). Ties up between $500-1,000 margin. Generates $50 income with the potential for the rare big hitter if it expires within the "bear trap"
/MES
Bought 3810P, Sold 3760P (50 point wide) Sold 3690P
Net credit $10.25 x /MES multiplier of 5 = 51.25
90% probability of expiring OTM but actually plays out much better.
EZ to manage as well.
Stole the trade idea, it's the 1-1-1
Good luck and happy holidays to all here.
I am surprised nobody had anything to say about this setup, maybe it wasn't broadly understood. A FB group that I'm in has been deploying this trade for better than 2 years, almost 3 years now, and other than fat fingers NO ONE HAS TAKEN A LOSS!
The premise is to buy a put debit spread, that's the bear trap.
Sell 1 or 2 puts well below the trap to collect an overall credit.
The trade that I just completed was +(1) 3930 PUT -(1) 3900 PUT -(2) 3590 PUT
Credit collected was $74 on April 4. On April 14 I closed the 2 lowest puts for $21, keeping $53 and having a free put debit spread in place in case the market ends up there.
This is THE ONLY option trade I do anymore. Why? Bear trap self hedges the trade, my naked position is 15% below the market when entered, the market avoids single name risk ( If S&P falls 15% in a month, how will your option trades look?) trades 23 X 5 for flexibility and capturing 2-3% per month like clockwork is nice.
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(04-17-2023, 06:15 PM)NilesMike Wrote: (11-28-2022, 08:42 PM)NilesMike Wrote: So quiet in here that I thought I'd post today's trade. I put this on every 30ish days ( I like to use a down day). Ties up between $500-1,000 margin. Generates $50 income with the potential for the rare big hitter if it expires within the "bear trap"
/MES
Bought 3810P, Sold 3760P (50 point wide) Sold 3690P
Net credit $10.25 x /MES multiplier of 5 = 51.25
90% probability of expiring OTM but actually plays out much better.
EZ to manage as well.
Stole the trade idea, it's the 1-1-1
Good luck and happy holidays to all here.
I am surprised nobody had anything to say about this setup, maybe it wasn't broadly understood. A FB group that I'm in has been deploying this trade for better than 2 years, almost 3 years now, and other than fat fingers NO ONE HAS TAKEN A LOSS!
The premise is to buy a put debit spread, that's the bear trap.
Sell 1 or 2 puts well below the trap to collect an overall credit.
The trade that I just completed was +(1) 3930 PUT -(1) 3900 PUT -(2) 3590 PUT
Credit collected was $74 on April 4. On April 14 I closed the 2 lowest puts for $21, keeping $53 and having a free put debit spread in place in case the market ends up there.
This is THE ONLY option trade I do anymore. Why? Bear trap self hedges the trade, my naked position is 15% below the market when entered, the market avoids single name risk ( If S&P falls 15% in a month, how will your option trades look?) trades 23 X 5 for flexibility and capturing 2-3% per month like clockwork is nice.
I'm intrigued, but don't honestly understand the trade. Can you spell it out like I'm nine years old? Or point me to a lay-person explanation?
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(04-19-2023, 01:15 PM)Kerim Wrote: (04-17-2023, 06:15 PM)NilesMike Wrote: (11-28-2022, 08:42 PM)NilesMike Wrote: So quiet in here that I thought I'd post today's trade. I put this on every 30ish days ( I like to use a down day). Ties up between $500-1,000 margin. Generates $50 income with the potential for the rare big hitter if it expires within the "bear trap"
/MES
Bought 3810P, Sold 3760P (50 point wide) Sold 3690P
Net credit $10.25 x /MES multiplier of 5 = 51.25
90% probability of expiring OTM but actually plays out much better.
EZ to manage as well.
Stole the trade idea, it's the 1-1-1
Good luck and happy holidays to all here.
I am surprised nobody had anything to say about this setup, maybe it wasn't broadly understood. A FB group that I'm in has been deploying this trade for better than 2 years, almost 3 years now, and other than fat fingers NO ONE HAS TAKEN A LOSS!
The premise is to buy a put debit spread, that's the bear trap.
Sell 1 or 2 puts well below the trap to collect an overall credit.
The trade that I just completed was +(1) 3930 PUT -(1) 3900 PUT -(2) 3590 PUT
Credit collected was $74 on April 4. On April 14 I closed the 2 lowest puts for $21, keeping $53 and having a free put debit spread in place in case the market ends up there.
This is THE ONLY option trade I do anymore. Why? Bear trap self hedges the trade, my naked position is 15% below the market when entered, the market avoids single name risk ( If S&P falls 15% in a month, how will your option trades look?) trades 23 X 5 for flexibility and capturing 2-3% per month like clockwork is nice.
I'm intrigued, but don't honestly understand the trade. Can you spell it out like I'm nine years old? Or point me to a lay-person explanation?
Underlying from smallest to largest (all S&P based) /MES (Micro Emini futures), /ES (Emini futures), SPX
Go to option chain with about 40-45 DTE
Buy a PUT around 150 points below the current price (current example = 4000)
Sell a PUT 30 points lower.
Cost of this trade is around $5.75-7.00
Go lower and find the PUT priced @ $10.00 (currently 3690) sell 2 of those for $10.00@
Net credit around $13-14.00
What I do is either let entire trade expire and keep the credit or close the naked puts when I have >70% of the credit in the bag, leaving the "free" debit spread on in case market falls to that level. Sometimes there is a chance that market drops and one can close the entire trade for more than 100% of the credit initially received.
The trade is a combo of bullish (naked puts) and bearish with Put debit spread. The only time it gets antsy if there is a pretty big drop right after entering trade. Otherwise it is extraordinarily quiet.
Lance has a pretty good video for starters. https://www.youtube.com/watch?v=kRXwdrzXeDo
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