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

[fenders53]

(06-08-2022, 07:17 PM)NilesMike Wrote:

(06-01-2022, 09:42 AM)NilesMike Wrote: STO

MO 17JUN 52.50 put for .89

If it gets put to me, dividend of .90 June 14

Looks like Morgan Stanley is going to put more MO to me.

I've been out of MO awhile. Missed the last 5% of the run. Sold a new put yesterday but just one until MO settles down.  Selling oil puts is still 80% of what is going well.  Not stretching that any farther than July 4th without heavy meditation.  Most of my open options are so far out of the money now they look safe but we never know.

[NilesMike]

Bought (oh my) SPY C spread 27JUN22

377/385 for turnaround Tuesday. Looking for 50% in a few days.

[fenders53]

Hope you are right

[NilesMike]

Got out with 30% before FOMC

[NilesMike]

Anatomy of a bad trade. My final single name option trade, indices only going forward. Too much risk w/single name.

June 1 MO is $54, sold a 52.50 put figuring it will hold up going into dividend. Not so much, it tumbled and got assigned, price at the time was 45. Not good, not horrible, I'll hold it and sell call(s). Sold a 47.50 call, total collected premium from put and call was around $1.40 so I'll continue to fight, it was small(thankfully) size.

FDA comes out today and FLUUUUUUUSH.

Final lesson, well learned.

Good luck to all.

[fenders53]

(06-22-2022, 07:59 PM)NilesMike Wrote: Anatomy of a bad trade. My final single name option trade, indices only going forward. Too much risk w/single name.

June 1 MO is $54, sold a 52.50 put figuring it will hold up going into dividend. Not so much, it tumbled and got assigned, price at the time was 45. Not good, not horrible, I'll hold it and sell call(s). Sold a 47.50 call, total collected premium from put and call was around $1.40 so I'll continue to fight, it was small(thankfully) size.

FDA comes out today and FLUUUUUUUSH.

Final lesson, well learned.

Good luck to all.

I had a put open on MO as well.  Not as high as yours but I got bit.  I am having my worst put selling month ever.  Oddly enough, mostly on ETFs.  I leaned into oil a little too hard.  I sold WAY out of the money and a couple weeks out.  Didn't matter.  I can not believe how hard it fell on no big change in fundamentals.  Your point is taken though.  An oil index is highly likely to bounce some from way oversold.  MO? It could be 6+ months of churning around low.  Individual options are especially risky now but some of the analysts estimates are still stuck in 2021 and need adjusted down 25%.  The market never likes that.

[NilesMike]

So quiet in here that I thought I'd post today's trade. I put this on every 30ish days ( I like to use a down day). Ties up between $500-1,000 margin. Generates $50 income with the potential for the rare big hitter if it expires within the "bear trap"

/MES

Bought 3810P, Sold 3760P (50 point wide) Sold 3690P
Net credit $10.25 x /MES multiplier of 5 = 51.25

90% probability of expiring OTM but actually plays out much better.

EZ to manage as well.

Stole the trade idea, it's the 1-1-1

Good luck and happy holidays to all here.