New strategy - buy to write instead of the wheel.

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

  1. taowave

    taowave

    This aged well
     
    #81     Oct 12, 2024
  2. taowave

    taowave

    LOL!!!

    Ill admit you are months to years ahead of me in regard to timing bottoms..

    But thats not the secret sauce








     
    #82     Oct 12, 2024

  3. Update!

    I put in a market order last last Wednesday and got filled at the top of the candle lol. I was down about $1700 ($1100 including premium).

    Now I am at almost break even, and collected $600 in premium for the NOV30 $9 strike. If I get filled then I profit $1600...if not I repeat. :)
     
    #83     Oct 16, 2024
  4. poopy

    poopy

    Update!

    TL;DR?

    "almost break even" = arb.

    wxy says BW instead of starting with the put. Apply EW and buy peasant model Lambo and additional van down by the river.
     
    #84     Oct 19, 2024
    taowave likes this.
  5. I can sell a put at the price level I think it's going to. So if it's at 14 I could sell a put at 17 but then I'm possibly getting assigned at the top of the leg. I'd put rather buy at the money and sell at the top. Get in and get out. Take my pnl & premium! :)
     
    Last edited: Oct 19, 2024
    #85     Oct 19, 2024
  6. taowave

    taowave

    Cmon dum dum..

    No mention of vol/premium??



     
    #86     Oct 19, 2024