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Conservative option strategies, what did you buy or sell today?
(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.
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You are correct Mike, I rarely buy an option. It is the inverse of selling and in theory I should be just as successful but I am not. Always room for improvement. I haven't given up on the idea. For whatever reason my account proves I am better at picking bottoms than tops. That works as I am looking for a good entry for long positions. But yes I will cash out when the market quickly offers a gift, and that happens often in a bull market.

You are right that terminology is important. We may come off harsh at times but I know we are trying to help others succeed. I am rough on John because he stops by occasionally and shares clearly impulsive trades. You just can't force trades and do what you wish you had done last week. You will lose money. You attempt to put the odds in your favor or just leave options alone. Every move should make sense and this requires some experience as you refine a strategy that works with your personal risk tolerance. There is no room for overly emotional moves.
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Looks like Georgia might make my ACB $11.5 calls in the money this week
another impulsive/speculative/profitable trade..
All tongue in cheek Fenders lol
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(01-06-2021, 08:17 AM)john Wrote: Looks like Georgia might make my ACB $11.5 calls in the money this week
another impulsive/speculative/profitable trade..
All tongue in cheek Fenders lol
We just scold you because we we love you and want you to retire early.   I wish somebody had grabbed me by the ear in 1999 lol.  Big Grin
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Ok, so the market doesn't actually give a damn who wins the election. Who knew lol??? Many of the puts I sold the last week or so need closed already. And do what with the money? I am thinking a new muscle car and pork belly futures. Smile
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Bought CRSP Bull Call spread135/140 16JUL21

Paid 2.45, max profit 2.55

Breakeven price 137.45 @ expiration

Anyone see a 28.00 drop by July?
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(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
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You do need to risk a few bucks to learn. When the market gets roughed up snd VIXX IX higher find a 20 stock that moves as around some but is profitable and maybe a dividend. You can get some real experience on how fast the premium moves around and decays. I have several favorites but they have all run up so no good no good now.
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(01-05-2021, 06:43 PM)pdaignau Wrote: [quote='fenders53' pid='23176' dateline='1609770001']
PUT Strike  28  EXP 1/15  Premium received 51.  Currently 41   Up 10
PUT Strike 29  EXP 1/8        57/86  Down 29
CALL Strike 29 EXP 1/15      60/65  Down 5
CALL Strike 30 EXP 1/8        38/11  Up 27
CALL Strike 32.50  EXP 1/22 54/3   Up 51

This is all about consistent income for me.  I have no emotional attachment to T.  T pays a div this week so that is mostly locked in.  I have collected $260 premium up front on these contracts and the extrinsic values should fall rapidly as expirations approach.  This doesn't have to work out perfectly to be a win.  We'll see what happens.    
Paul,

I just lost a long post here. I rolled two options forward and up and will repost details later.
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(01-06-2021, 06:33 PM)NilesMike Wrote: Bought CRSP Bull Call spread135/140 16JUL21

Paid 2.45, max profit 2.55

Breakeven price 137.45 @ expiration

Anyone see a 28.00 drop by July?

Sold it out today for 3.10

25% profit, 1 day= good enough for me.
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