I would not have made it without this amazing sub, the opportunity to connect with option traders at the highest level. Thank you to those who took the time out of their day to comment, give feedback, leave encouraging words of motivation, truly an amazing group here!
Guess some things about how I trade:
- Position sizing is always small like 1-3% of port, biggest play have taken only once was 15%.
- Am a neutral trader bets will have a hedge, open with Strangle, or use double of some sort.
- Earnings are my bread and butter I use these 3 in combination reverse diagonal, double diagonal and debt spreads.
- I really, really hate gambling. I hate losing money. So am trying to trade less and less now.
The reverse diagonal covers flat price action and only works on day-of earning's selling disproportionate IV. The double diagonal covers downside and upside so if goes the losing direction will still offset good portion of my bullish play losses. Finally, the debt spreads are my bullish play in the direction think earning's will go. Same can be accomplished with call debt spread & OTM put, which is something am going to try more because flat price action occurrences are so rare with tech.
There's so many rules I follow:
- Company should report Wednesday earliest, need IV crush and expiration to happen as close as possible to extract all the premium from short legs to get as much profit as possible, any sooner in the week and short legs maintain too much life/value.
- Intrinsic value trumps all. The most important piece of the puzzle for me is estimating a safe bet for a large sized amount of intrinsic value to gain. IV crush is irrelevant on earning's if am playing for intrinsic value.
- Analysis trumps fundamentals. First half of the year thought I was a genius cause could understand earnings reports but my trades didn't reflect the fundamentals. S for example, on earning's did amazing but then sold off cause was at resistance. Someone even commented saying careful there's double hammer top, I foolishly challenged them saying earning's will be phenomenal and they were but short term analysis was right and dumped.
I want to trade earning's, then open a Strangle immediately the next day with 21-30dte, let the winning side run and start selling covered. If there's no catalyst for price to run, and I have to guess the timing when this supposed unexpected catalyst will come it becomes damn near impossible, feels like I'm guessing. So I want to trade events, when there's a catalyst and I don't have to time when the move will take place. Everyone trades differently, this is just what's most logical to me.
Nov. Marks One Year Since Starting Options, Not WSB Gains But Beating The Market.
byu/breakyourteethnow inoptions
Posted by breakyourteethnow
2 Comments
I’ve closed pretty much all my positions. Have put debt spread on AVGO $172.50/$167.50 (10/04), which I opened few days ago. Have LEAPS on HIMS and HOOD which opened back in May. Closed my RKLB position, want to reopen around $7 and sell CC’s if possible.
I’m wanting to take a really big position in shares with S after it dumps, the last earning’s was so strong and next quarter should be first quarter becoming profitable which should see big run.
DKNG has NFL season and superbowl coming up, missed my opportunity my mentor told me when price was $33.
Am looking forward to TSM earning’s, believe it’ll break $200 now, think Stranger Things S5 will get promo for Halloween which should help NFLX earning’s future guidance.
These are some ideas I have in mind for my next trades
I’ve spent so much money testing different option structures, I’ve tried everything now pretty much in almost all market conditions. Chopped for literally 3-4 months while paying for tuition, I just recently understood the relation of intrinsic value to options.
I should be like 300%+ but just lacked knowledge. See my post with FDX earning’s I opened a $260/$260 calendar as my bullish play, built no intrinsic value. Had I known what I now with Micron only on FDX, would’ve opened more $275/$260 put debt spreads instead of just one and made so much intrinsic value. However, the one which killed it unlocked my understanding, which allowed me to trade Micron beautifully. The bullish plays were BTO $97 and STO $106 call debt spreads.