Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Conservative option strategies, what did you buy or sell today?
#81
(04-05-2019, 10:53 AM)fenders53 Wrote:
(04-05-2019, 08:06 AM)crimsonghost747 Wrote: Fancy indeed!
I sold another Tesla put @ $242.5
That sounds conservative to me Crimson.  It's amazing a put that far out of the money is worth the trade.  

Well. I can tell you one thing: I'm not going to get assigned on a tesla put! Big Grin

Yeah the premium in yesterdays opening panic was nice enough. Strike date was April 12th. 
I just bought it back for $37 since I just can't justify holding onto a tesla put for a week for a small amount like that. Who knows if Elon remembers his twitter password again next week?!  Big Grin
Reply
#82
(04-05-2019, 07:57 AM)fenders53 Wrote: Gotcha, I look forward to following along. Do I understand the goal of this TSLA trade correctly? You hope to catch TSLA very near 260 after some time value erodes? Then close it.

The goal is that TSLA moves down to or near my strike (260) and close it for 25% of the max profit.

Butterfly trades are slow to move so it doesn't require a lot of time to monitor them.
Reply
#83
(04-05-2019, 06:19 PM)NilesMike Wrote:
(04-05-2019, 07:57 AM)fenders53 Wrote: Gotcha, I look forward to following along.  Do I understand the goal of this TSLA trade correctly?  You hope to catch TSLA very near 260 after some time value erodes?  Then close it.

The goal is that TSLA moves down to or near my strike (260) and close it for 25% of the max profit.

Butterfly trades are slow to move so it doesn't require a lot of time to monitor them.
That qualifies as conservative enough IMO.  I had to refresh myself on the butterfly strategy.  I've decided to let you do this on my thread lol.  I know you were worried about that.  Smile
Reply
#84
(04-05-2019, 12:28 PM)crimsonghost747 Wrote:
(04-05-2019, 10:53 AM)fenders53 Wrote:
(04-05-2019, 08:06 AM)crimsonghost747 Wrote: Fancy indeed!
I sold another Tesla put @ $242.5
That sounds conservative to me Crimson.  It's amazing a put that far out of the money is worth the trade.  

Well. I can tell you one thing: I'm not going to get assigned on a tesla put! Big Grin

Yeah the premium in yesterdays opening panic was nice enough. Strike date was April 12th. 
I just bought it back for $37 since I just can't justify holding onto a tesla put for a week for a small amount like that. Who knows if Elon remembers his twitter password again next week?!  Big Grin
I think you're good unless Elon starts posting naked pics of the judge on Facebook.  And if he does, well then I guess Mike's butterfly trade is gonna work out just fine lol.  If Elon of Trump ever lose Twitter access I am going to buy Twitter puts with my entire retirement account.   Smile
Reply
#85
TSLA down $10 pre market. Let's see the flush.
Reply
#86
(04-11-2019, 06:19 AM)NilesMike Wrote: TSLA down $10 pre market. Let's see the flush.

Was it so that your max profit is when/if it hits $260?

There is a lot of worrying news around Tesla currently. But I might still sell another put around that $245 mark.
Reply
#87
(04-11-2019, 06:35 AM)crimsonghost747 Wrote:
(04-11-2019, 06:19 AM)NilesMike Wrote: TSLA down $10 pre market. Let's see the flush.

Was it so that your max profit is when/if it hits $260?

There is a lot of worrying news around Tesla currently. But I might still sell another put around that $245 mark.

Expiring at $260 would be max profit, but I'm only looking 25% of max. $125 per on $10 buy.

I have NO IDEA where TSLA or any other name will wind up but I like the R/R
Reply
#88
Looks like it will turn out to be a good play Mike. The only thing that seems certain going forward is that TSLA will be volatile. Sure it could make a round trip to $230 and back. I fail so see an upside catalyst that launches this thing high in the short term. The US demand thesis is broken. If it gets better starting today, the data is not collected and reported 10 days from now.

Be careful here Crimson. TSLA might be a wonderful long term hold. We just don't really know. But this bird is winged and the negative media will be ruthless and wear out the coverage on anything negative for now. TSLA vaguely reminds me of the first decade of AMZN. But Bezos is stable and that is an important difference. Elon is getting in trouble when the sky looked fairly bright. I think that's an important difference. Just sharing thoughts, and trying to be helpful. I know I pretend to "know" a lot of things. Maybe it's because I have been so wrong over the years and learned a few hard lessons on these high fliers when the helium finally gets out of the balloon. Smile
Reply
#89
Selling 17MAY19P 20 Strike in DAN for .70, 3.6% if expires OTM. Hoping to scoop it up in the 19.30 price though.
It has some room to go and 2.0% dividend isn't the worst thing in the world.
Reply
#90
Here are a few recent success and potentially a fail story to share. I sold puts on DIS, PRU, BWA, several airline stocks and my usual batch of UTES. Very quick profit on most of them and the UTEs are doing well enough. My CVS put sell is hanging in there.

My UNH 235 put is in peril big time and it happened fast, REAL fast. That stock dropped 20 points in a few days with the Bernie plan getting attention. Ill ride it out, and roll it forward if I need to. Selling more time cures most of y problems. I am truly OK with going long UNH, but I prefer not to pay $25 above market if I can avoid it. Nobody said this was always easy lol.

Opinions welcomed on playing health insurance providers at this time. It was obviously a real bad idea this week. Smile

Still hoping AAPL pulls back $10 so I can tap dance and not give away my long position. Cramer has been warning me not to trade AAPL for 5 years. Not the first time he was right on this subject.

You having any problems on any positions right now Mike? Hopefully not. I'll check out DAN. I'm not familiar with the ticker.
Reply




Users browsing this thread: 1 Guest(s)