My approach to selling puts.

Discussion in 'Options' started by tonyf, May 18, 2021.

  1. tonyf

    tonyf

    That is correct with a slight difference. I did not lose money since February when the longs were flat or lost money.
     
    #21     May 19, 2021
    shuraver and .sigma like this.
  2. tonyf

    tonyf

    This Friday will be high, c. 80% of available cash.
    Yield this month is around 4% when adjusting for assignment.
     
    #22     May 19, 2021
  3. tonyf

    tonyf

    Ps. there is nothing magical here. The only diff. is the charts-and-Greeks free approach. That's it.

    Anyone can do it if they care to forensically look at balance sheets and study events.
     
    Last edited: May 19, 2021
    #23     May 19, 2021
  4. tonyf

    tonyf

    That's what my father said 12 months ago! Market timing (calling the top) is a one off speculative and discrete event. I have no interest in that.

    Edit: I am, nonetheless, concerned from the impact of a wide sell off (black swan tail risk). I have not done anything about that yet but it is on my mind.
     
    Last edited: May 19, 2021
    #24     May 19, 2021
    .sigma likes this.
  5. HunterD

    HunterD

    selling puts work when the market goes up or rockets
    but you will lose money while the market drops
    be aware of it
     
    #25     May 19, 2021
  6. traider

    traider

    If you confident in your edge , you can hedge out some of your market beta by shorting ES futures or buying SPX puts.
     
    #26     May 19, 2021
  7. tonyf

    tonyf

    What is the rough cost of hedging a given portfolio with 20% OTM SPX puts on a monthly basis?
     
    #27     May 19, 2021
  8. newwurldmn

    newwurldmn

    What is the notional you are selling relative to your account?

    notional = Strike*quantity*100
     
    #28     May 19, 2021
    taowave likes this.
  9. tonyf

    tonyf

    today is 3.3x - but it has hit 7x at the peak.
     
    #29     May 19, 2021
  10. tonyf

    tonyf

    That's right, my thinking is that my TCSPs are backed by paper (shares) I would inherit below intrinsic value, hence why I use leverage.
    It is a global sell off that worries me on the other hand.
     
    #30     May 19, 2021