IronFist's beginner option trading journal

Discussion in 'Journals' started by IronFist, Mar 29, 2021.

  1. The price of my puts has increased. I am going to roll into future dated, hopefully will get a good price.
     
    #11     Apr 9, 2021
  2. Got nasty price. Rolled into 30th april 1.50 puts. Sold for bought for .51, sold for .51, net loss after commission, why do I have to go so ahead to find a higher price?
     
    #12     Apr 9, 2021
  3. caroy

    caroy

    Looking forward to following this journal. Best of luck.
     
    #13     Apr 10, 2021
  4. why are some spreads so bad on cerain prices? user.png
     
    #14     Apr 13, 2021
  5. BKR88

    BKR88

    No reason to be short the 1.50 Puts. Tiny premium is lost in the spread.
    Same loss potential as owning the stock & less profit potential.
    Easier to exit the stock & no rolling at expiration.
    After purchasing stock, place sell limits @ ___, ___, ___ to scale out. Price just needs to pass through your orders by .01 & you're out. With the short Puts, price needs to close above 1.50 on Apr. 30th. If price goes to 1.60 Apr 20th then closes below 1.50 Apr 30th you're still in.

    ***Thought you agreed the last time I suggested this. :)
    https://www.elitetrader.com/et/thre...you-change-strike-prices.357242/#post-5352883
     
    #15     Apr 13, 2021
  6. I missed your post before until I had rolled.

    So should I let them expire and take assignment?
     
    #16     Apr 16, 2021
  7. BKR88

    BKR88

    Yes, let them expire.
    After assigned the shares, place limit orders to sell.
    I think your break-even is around 1.30 ..... so depends upon what you expect from this trade but you could do sell limits 100@1.25, 100@1.30, 100@1.35, 100@1.40.
    This will get you out of this trade much easier than trying to get the options to expire worthless.
    Stocks in the single digits are difficult to sell puts or roll out. Too much distance (%) between the strike prices.
     
    #17     Apr 16, 2021
  8. These options are so annoying.

    April 23 1.50 options, ask is .66.

    Ok, let's see how far out we have to go to roll them to make money...

    April 30 1.50 options, bid is .66 (loss after commission)

    May 7 1.50 options, bid is .66 (loss after commission)

    May 14 1.5 options, bid is .66 (loss after commission)

    May 21 1.5 options, bid is .68
     
    #18     Apr 23, 2021
  9. Justrade

    Justrade

     
    #19     Apr 23, 2021
  10. Thinking about letting them expire as @BKR88 suggested earlier.
     
    #20     Apr 23, 2021