Take it easy everybody! If you care to know what I did (in terms of XOM) ... Today I sold 5 x 123C with a March 10 expiration date. XOM 03/10/2023 123.00 C I'm still holding the 5 put contracts expiring this Friday XOM 02/03/2023 111.00 P When JP farts tomorrow maybe the markets go down, take XOM with it, and I sell my PUTS. (And make some money) I will eventually learn more options strategies, nomenclature, etc. But for now I'm doing the best that I can, to do what I think is best. What books should I read?
You were right in that I did not FULLY understand what the hell I did. Thank you for helping me think about it.
@newwurldmn and I are friends. Long stock x long puts x short calls: You are long the diagonalized synthetic call spread. In reality the 111s are going to go off worthless and you'll end up with the March CC.
Your quote has (mine) and MsDawn's text commingled. Our DNA cannot touch... Anyway, I have only read Hull in the space but I hear good things about Natenberg; also Baird's Option Market Making.
Good that newwurldmn is a friend, at least I understood the acronym WTF. Today is Tuesday. Fed decision tomorrow. Powell speaks tomorrow. How do you know that my put will go off worthless?
You need 3-4% for the put to go ITM and the co had a solid beat and closed on the high. I would think the SPX would have to drop 3% to touch 111 and we have tech reporting later in the week (AAPL, GOOGL, AMZN). Reaction to Fed should be 1-1.5%. Any reaction >2% on Fed should be faded.