The Put Seller's Journal

Discussion in 'Journals' started by earth_imperator, Jul 16, 2022.

  1. The Put Seller's Journal

    This journal is about collecting ideas & infos around Put Selling (ie. Put Writing).
    Especially "Covered Put" (aka "Cash-Secured Put") in a Cash Account,
    but can be done as well in a Margin Account.

    Also, extending it to Bull Put Spread and Bear Put Spread (see also this).

    FYI: Pattern Day Trading (PDT) rule does not apply to Cash Accounts, which is of course good news for small traders.

    It's not necessarily about posting trades and account values.
    Occasionally some on-topic trade ideas for discussion & exchange of opinions can be posted.

    See also the related thread "11 cases a Put seller should know".

    Constructive participation is welcome.
    Spammers will be reported & blocked.

    short_put_variant_1b.png
     
    Last edited: Jul 16, 2022
    MACD likes this.
  2. ffs1001

    ffs1001


    Reported to who? Do you really think the mods here give a damn, with the amount of abusive/trollish posts around?

    Constructive participation?

    Okay, firstly, pls don't start threads like these as they highlight your own lack of knowledge about the subject. A post like this would have been fine in the mid 90's when most people had no idea of what a put option is. Not today. You may think you are adding some sort of value, but it's quite cringe actually.

    Secondly, your chart is deceptive - it is showing a massive profit zone to the RHS, but subtly hides the enormous losses on the LHS if the stock falls. The chart should be more like this :

    upload_2022-7-16_11-20-45.png


    Thirdly, do you actually trade, or are you just an armchair copy-and-paste merchant?
     
    fullautotrading and sysdevel99 like this.
  3. I don't think it's up to you whether I or someone else opens a specialized journal.
    Just accept & tolerate it, or else simply don't read nor participate. That easy.

    This just shows that it's in fact you who does not know much. I can show you trades with a much much better P/L diagram. It all depends on the input parameters of the trade (esp. IV and DTE).

    Sure I am making real trades. But why does it bother you whether one makes real trades or paper trades for studying? It doesn't matter. One can learn from both cases.

    What about you and your qualification? Oh, better write that in your own journal instead of spamming my journal with your such non-constructive garbage c-rap! Thx... :)
     
    Last edited: Jul 16, 2022
    MACD likes this.
  4. ffs1001

    ffs1001

    Ohhhh....touchy. Someone is a sensitive little boy. You ask for constructive participation, and when you get it, you double down on displays of ignorance.

    Go ahead - show me a trade where selling a short OTM put has a greater max profit than max loss.


    Good luck with your 'journal'.
     
    fullautotrading likes this.
  5. Blah blah blah --> ignored.
    Why suddenly limiting to OTM? I'm not sure whether the one I mean was OTM or rather ITM, but now thinking twice about it I think this should not matter. I'll check & post.
    Here watch this P/L diagram from the above mentioned real trade idea regarding ticker BBBY:
    BBBY_PL_dia.png

    I also had mentioned in the initial posting the extension to Bull and Bear Put Spreads: with them the loss side can be capped...

    Yeah, same to you... :)
     
    Last edited: Jul 16, 2022
  6. zghorner

    zghorner

    selling puts in a bear market? the nards on this guy lol.
     
    piezoe likes this.
  7. It depends on the expiration date (ie. how big DTE is), for example Jan-2023 and Jan-2024...
    No margin-call danger b/c using cash account... :p
     
  8. ET180

    ET180

    Some stuff is down quite a lot. If you find something at a discount and are ok acquiring it at a discount to current prices, it might make sense to sell puts. For example, I got a ratio on in Google (put on for a small credit) that brings down my cost basis to around 1700 if I were assigned. Would I buy Google at roughly half off where it was a year ago? Sure.
     
  9. ffs1001

    ffs1001

    With respect, replace 'Google' for NFLX in the above sentence and imagine it's Oct 2021.
    Perception of what is a good price to pay for a stock can change very quickly.
    I accept that GOOG is not NFLX.

    PS - aren't GOOG doing a stock split?
     
    #10     Jul 16, 2022