New strategy - buy to write instead of the wheel.

Discussion in 'Options' started by wxytrader, Oct 10, 2024.

  1. poopy

    poopy

    lol!
     
    #51     Oct 11, 2024
  2. It's the only question. I am not buying and selling an atm call...although that doesn't sound like a terrible strategy for income... In your scenario I would be buying @ 100 and selling a 118 call for example.
     
    #52     Oct 11, 2024
  3. poopy

    poopy






    Why is this so hard for you?
     
    #53     Oct 11, 2024
  4. I was just about to ask the same question lol.

    The difference is how the position plays out. If I buy 1000 SHIT stock @ 25, and sell 1 30 call for .60 the I collect $600. If the stock gets called away I make an additional 5k in profits.

    If I sell 1 25 put then I collect the premium, but have no other profit potential. :)
     
    #54     Oct 11, 2024
  5. taowave

    taowave

    Lol!!!!!
    Say WUT????

    Dam Bro, that is one f-cked up example you gave..

    Better edit it before Poopy reads that gem

    You are special

     
    #55     Oct 11, 2024
  6. poopy

    poopy


    lolwut?

    10 to 1? You're irredeemable. Truly.

    Buy 100 SHIT -> sell 1 30C

    <or>

    Sell 1 30P

    What's the difference?
     
    #56     Oct 11, 2024
  7. poopy

    poopy

    And it's not quoting the 25P vs 30C. Equivalence. Same strike. My 20yo could explain this to lay-people after a 20 minute primer.
     
    #57     Oct 12, 2024
  8. It is different lol because I'm not buying and then selling an ATM call.

    I know what you are trying to say that on a pnl chart +stock - call = - put
     
    #58     Oct 12, 2024
  9. poopy

    poopy


    Buy 100 shares and selling 1 30C on a single complex order ticket is equivalent to selling 1 30P.
     
    #59     Oct 12, 2024
  10. poopy

    poopy

    stock - call

    OR

    - put

    It's not two calls you wanker. C, P.
     
    #60     Oct 12, 2024