Alice in Optionsland

Discussion in 'Journals' started by qlai, Oct 25, 2021.

  1. qlai

    qlai

    The plan right now is to let short leg expire worthless and then wait for a down move.

    If the move is extreme enough to make the long put DITM, I may start “gamma scalping” with shares against the long put. Or simply close the trade.

    If the move down is contained, I will try selling another put as far down and as short duration as possible(something like 990/950 calendar). I would still like to have “lottery ticket” left over.

    If I get assigned at 990, I will either sell a call against shares or just try to get out at BE and wait for down move as described earlier.

    If TSLA runs up so far that I can’t get anything going, I will just try to salvage whatever I can for a BE trade.

    I don’t like rolling because it takes away “flexibility” that I have with just getting assigned shares, at least in my mind. But I assume you suggested rolling to “skew” the existing spread in my favor or something of that nature.
     
    #31     Nov 16, 2021
  2. qlai

    qlai

    Closed short leg for $0.05

    upload_2021-11-26_11-11-31.png
     
    #32     Nov 26, 2021
  3. Overnight

    Overnight

    How was that for timing eh? Someone likes Omicron. :)
     
    #33     Nov 26, 2021
    qlai likes this.
  4. taowave

    taowave

    Nice trade,you nailed that focker..
     
    #34     Nov 26, 2021
    qlai likes this.
  5. qlai

    qlai

    It’s not over yet. I’m keeping the long leg, so I scan still loose money on this trade.
     
    #35     Nov 26, 2021
  6. Overnight

    Overnight

    This is what I don't get...You are long that Jan 21 put at 990. I have not been following the trade through the thread...How much did you pay to buy that put when you did?
     
    #36     Nov 26, 2021
  7. qlai

    qlai

    $78.98 and now theta is working against me. I am hoping TSLA dumps below $1000 and says there.
     
    #37     Nov 26, 2021
  8. Overnight

    Overnight

    So you paid 7900 bux for it?
     
    #38     Nov 26, 2021
  9. qlai

    qlai

    Yes. But don’t forget that this is for a stock that is very volatile. Now I have almost ATM put at a discount with two months to go.
     
    #39     Nov 26, 2021
  10. Overnight

    Overnight

    Well shit, so in reality, the position is down ~3800 bux. Man, that sux total ass. I hate options because of shit like this.
     
    #40     Nov 26, 2021