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Conservative option strategies, what did you buy or sell today?
(10-16-2019, 04:48 PM)NilesMike Wrote:
(10-16-2019, 12:59 PM)fenders53 Wrote: Almost ready to try the SPX thing Mike.  I practiced on something simpler today.  Vertical call spread on Deere.  Sold the NOV 175s, bought the 180s.  Collected $170 net premium.  Like taking candy from a baby.  Smile  OK maybe not, but my downside max risk is $500 if DE goes parabolic.  DE is running up on trade war soybean prayers.

Risk is 330 since you collected 170

You're correct of course, but the $170 cash is already in my account so it's down $500 from here if I mess this up.  Smile  I am comfortable with the risk reward.  

To anyone reading this, it only qualifies as anything close to "conservative" if you are very selective.  I won't be doing this with a stock that routinely moves 5% in a day.  Most of my port is inappropriate because it is boring DGI low beta so that you can't collect a premium that makes the risk reward work.  When the market is right I think I will occasionally do put spreads now and then on oversold stocks I intend to purchase at some point.  If I get upside down I can transition to my long position and make the best of it.  MMM, CAT, HON are future candidates, but at the wrong end of the trading range right now.
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Messages In This Thread
RE: Conservative option strategies, what did you buy or sell today? - by fenders53 - 10-16-2019, 07:37 PM
T puts ? - by john - 03-17-2020, 09:33 AM
RE: T puts ? - by fenders53 - 03-17-2020, 10:32 AM
RE: WEN options update - by john - 03-23-2020, 09:53 AM
RE: WEN options update - by fenders53 - 03-23-2020, 10:40 AM



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