Selling Premium - Strategy Never Discussed

Discussion in 'Options' started by robertSt, Dec 4, 2018.

  1. ironchef

    ironchef

    Don't have to get upset and thanks for sharing. Folks who cautioned you were well intentioned as there are more loser than winners in this game so it is helpful to hear them out.

    I found there is a different mindset between professionals (money managers, IB, hedge funds) and retails. For example a drawdown of >50-60% doesn't bother me as a retail and I had quite a few such events happened to me (March 2020 was one by the way).

    Someone I know very well trades full time for 15 years using a strategy similar to yours except he is even more concentrated: Only traded options on one stock, selling puts and calls on it over and over for 15 years.

    There is more than one way to skin a cat. If it works for you and you are happy, it is your money, go for it.
     
    #281     Feb 14, 2021
    Aged Learner likes this.
  2. traider

    traider

    Who is the chosen one?
    Is the stock AAPL?
     
    #282     Feb 14, 2021
    ironchef likes this.
  3. robertSt

    robertSt

    Trade 3 - Sold to open 10 FUBO Feb 19 43 puts @ 1.40 credit
     
    #283     Feb 16, 2021
  4. ironchef

    ironchef

    Over the weekend I did some analysis, simulation using BSM and did some backtest with AAPL, GOOGL.

    Under certain conditions (one of which is high IV), rolling up and out can work very well for covered calls provided you don't do it mechanically and you watch/manage your trade so the underlying won't run away from you.
     
    #284     Feb 16, 2021
  5. robertSt

    robertSt

    Trade 4 - Sold to open 10 PLTR Feb 19 28 puts @ 1.04 credit
     
    #285     Feb 16, 2021
  6. newwurldmn

    newwurldmn

    How is that unlevered if you have a 44k account and 70k of notional at risk just today
     
    #286     Feb 16, 2021
  7. robertSt

    robertSt

    Who said I had a 44K account? Destriero?
     
    #287     Feb 16, 2021
  8. robertSt

    robertSt

    And I believe the notional risk posted as of today is 115K.
     
    #288     Feb 16, 2021
  9. robertSt

    robertSt

    I said this strategy works best if you are well-capitalized. I would never place anything like my whole account into one trade. Or even 10%. I didn't have so much when I started, and that's why I know that if you are forced to take chances by taking on only a couple or three positions, when they inevitably go against you and go long term, your account can become paralyzed.
     
    #289     Feb 16, 2021
  10. destriero

    destriero


    lol he's risking $27K on PLTR alone.

    #unlevered
     
    #290     Feb 16, 2021