Stupid, ain't it? That's why I feel so....can't think of the word. Oh, and I'm a VFR pilot, so I'm looking outside the airplane.
I learned the eyes-out-the-window flying lesson the hard way. Let my medical lapse but want to get back into being PIC. Meanwhile, I muse about the flight school lessons for options trading.
Well thanks, but the problem is that it's been all luck, just dumb luck. I don't feel any skill in the least, just lucky. I feel like a deer in the headlights when things move against me. My knowledge on what to do as far as adjusting my position is non existent. I feel like I'm playing musical chairs only selling bull put credit spreads, waiting for the music to stop and I'll have nowhere to sit down.
You have articulated the situation well. When I was the manager of a technical team we used to use the STAR system. (SiTuation, Action, Result). What action do you want to take?
Well, at least you have a 30% gain to work with now. My dad used to always say that what made Vegas so tough was you would always start down and spend hours just trying to break even! I have had the same experiences with Vegas BTW - I lose $300 or whatever and spend hours and sometimes luckily hit 2222 or something and win $300 back and leave even! I never start with the 2222 (Dueces Wild Poker) and then have the houses money. Back on topic though, I play weeklys sometimes, but I actually like to do them on the last day - therefore no overnight risk. Yes, you have to go closer to the money, but it's easier for me to manage even during a workday :eek: For example, today with the weak open, I looked at SPY and I think you could have got about 10-12 cents credit for the 130/129 bull put spread (only 1 point). I didn't do it, because today I was bothered with other issues, but I figured the market would bounce enough to keep that and it did, even though it might have got scary later in the day (probably could have been closed very cheap though mid-day). I did do a similar spread a few weeks ago for 15 cents credit and later in the day bought back for 3 cents. It can also be OK with individual stocks like AAPL, AMZN, etc. For example, if AMZN is at $195.75 one morning, you might get decent money with the 195/190. Again, the good news being since it is Friday morning already, there is no overnight risk. Sometimes I even do Long Iron Condors such as if AAPL is $350 you do : -350 Straddle +355 Call +345 put. One time I actually opened this at 7:00 AM Pacific time for about $180 credit and sold at 7:40 for $150 for a nice $30 gain per spread on a 10 qty! Risky for sure though - you have to watch them close. What I like is having risk for a few hours, and no overnight / morning risk compared to several days of risk with overnight / morning risk. Something to think about anyway. JJacksET4
Maverick isn't the thread starter and certainly has more knowledge and experience in the subject matter. Markets aren't bound by touch probabilities. He sold the weekly vertical.
So basically, we need to help the thread starter understand that he is selling Tail Risk and that he has pin risk on his upper strike. how can he manage his pin risk. Well if he sees the market coming off he might have to buy some shorter dated puts ATM or something. Or if the market comes crashing he should probably lift a leg on his put spread or even sell into his negative gamma. The thread starter doesnt really understand the complete risk of his transaction. lets give him some advice.
What's that expression about selling naked options.... ??? Ummmm .... You get to eat like a bird and shit like an elephant?