(04-18-2020, 09:24 AM)john Wrote: Had my AAL 4/17 $11 put expire worthless yesterday +$32
OZK 4/17 $22.50 call expire worthless+$5
Had a WEN 4/17 call expire $16 called away that was put to me @ $12 3/23 plan on selling a put on that next down day
Bought 100 F @ $4.92 thursday then sold a 4/17 $5 Call for $10 got called away +$18
Nickle and dimeing my way to something lol
I think you're doing OK and learning the process. Just make sure you apply some self discipline, especially when selling puts. It might go perfect for six months, but at some point the market will turn on you and you'll stick yourself with a bunch of shares. I took a break from selling puts the past few weeks because nothing good is oversold. We are spoiled right now as IV is still pretty high. It's not hard to get 1-2% for a very short term expiration. When normal volatility returns you might have to sell them a month out to get 1- 1 1/2%.
If you want to play with airlines target one that won't likely go BK. I know AAL and F are cheap and easy to chase an option nickel but you are playing with fire. If the market was rational AAL would be $5 now. F may be headed for a another haircut as well. Both of them have junk debt ratings. AAL should be BK. With premiums high there is no reason to force yourself into junk.
Sorry if it sounds like I am trying to find fault in all your ideas. I wouldn't be nearly as scared to get stuck with some WEN or OZK. There are a million more stocks in similar shape.
Another tip I use when I sell puts on lower option premium stocks. Catch a boring higher yield stock on a good dip a few weeks before it's ex-div date. T-MO-DOW-MET-IP-ADM are examples of lower priced stocks that might interest you. There are many more. They usually run up just a bit or at least stabilize right before the x-div. Nobody will early assign you (put) if you are slightly in the money if a good div is coming in just a few days. I've done this literally 100 times and it usually works out. Worst case you get stuck with a pretty decent stock likely to maintain it's dividend, and get the dividend due now. Always pay attention to the x-div with EVERY option play. You'll get some bad surprises if you don't. Holding a stock like T and having your shares stolen the day you would qualify (call) for the big div stinks.