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

Big Grin  kidding.
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(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.

Big Grin  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.
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(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.

Big Grin  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.
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Looking to buy a PUT spread on NEE this morning.

85/80 19MAR for $2.15

Target sell 2.80

Stop sell 1.10
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Did you get it done ?
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(01-25-2021, 08:26 PM)fenders53 Wrote: Did you get it done ?

Patience paid off a bit, got in for 1.85.

Same exits remain in place, just will hit them at a slightly higher price. Think this goes down to 81's
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It might. I've considered selling at least one covered call on my NEE shares but it's a core position so I try to be patient.
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(01-26-2021, 06:59 AM)fenders53 Wrote: It might.  

That's always the tricky part. Sad
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