FB earnings strangle

Discussion in 'Options' started by qlai, Oct 22, 2021.

  1. qlai

    qlai

    Well, at some point you need to draw a line in the sand and go for it. Besides HFT type of trading, I haven’t found (read about) any way to find a risk-less trade ideas. Knowledge of how options work will surely improve your edge, but I doubt very much it’s an edge in itself. We are all speculating on something either moving or not moving (and magnitude). Would love to hear your take on this.
     
    #51     Oct 30, 2021
  2. qlai

    qlai

    I know what you've all been thinking ... It's only a matter of time. Well, I am not going to disappoint you :)

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    #52     Nov 5, 2021
  3. Overnight

    Overnight

    How much premium did you collect for selling that put?
     
    #53     Nov 5, 2021
  4. qlai

    qlai

    FIVE HUNDRED DOLLARS!

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    #54     Nov 5, 2021
    Overnight likes this.
  5. qlai

    qlai

    Plan of action: I bought 100 shares on Friday. Will wait for the time value of the put to evaporate and will either take assignment or roll as far down as possible. This will probably be dead money till at least the next earnings. This stock can move, so hopefully I can make something happen. I’ll keep myself posted lol
     
    #55     Nov 7, 2021
  6. Overnight

    Overnight

    It is a guarantee that the stock will go up over time. Just by changing their name to "Meta" will invite new investors as it filters down the brainstem of the traderverse. I believe that in the end, you will come out ahead. The only loss is opportunity cost I guess. No big deal, I do it all the time. :)
     
    #56     Nov 7, 2021
  7. qlai

    qlai

    Well, MVRS may go up, but I am not so sure about PTON.
     
    #57     Nov 7, 2021
  8. Overnight

    Overnight

    Peleton? I am not a stock guru, but it seems to me that they blew their load during the height of the pandemic, when everyone wanted their at-home exercise bikes. Coming out of the pandemic, they will not be seeing sales continuing to increase, but decrease.
     
    #58     Nov 8, 2021
  9. qlai

    qlai

    It doesn’t matter. Stocks go up and stocks go down. I am not playing fundamentals. As long as there’s uncertainty, there should be opportunities. Obviously, at this point, I am playing defense.
     
    #59     Nov 8, 2021
  10. qlai

    qlai

    Was holding 200 shares (so total exposure was 300 shares including the put) and closed 100 today at BE to reduce risk(defense). If I get assigned at $80, my avg price would be around $67 which is about 25% away from current price. Wishing for some good news on Christmas sales :)

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    #60     Nov 16, 2021