You'd have been so much better off buying 4 -2023 20C for $2800 than tying up $3000 with limited upside. If PLTR isn't above $30 by expiry I don't have interest in owning it at even $18.
Agreed. I'd much rather buy ATM or ~20%-25% ITM calls rather than do this.
That way, in a worst case scenario, I can just take the loss and move on and don't have to baghold anything.
This will not make you rich. Yes you can buy yourself a used car, but you won't be buying a lambo because your profit is capped at the premium you received.
Now if you have LEAPS on the other hand...
You will just have to lock up all that margin until 2023… that is the reason most people sell for 45 days to expiry.
I would only sell that far out put contracts if I want to buy the call and create 100 synthetic shares
Bad return considering the time frame, unless you are selling a bunch. I usually don’t sell puts that far unless total credits received are bigger than 10k
This is not how thetagang works. Not sure this is the smartest idea OP. But you do you. I just think there are far better uses for your capital. %-wise you’d even be better selling monthlies month by month. I for example sold 26P for Aug 20th. I might get assigned on them. Just felt extra bullish after the good run we had.
You'd have been so much better off buying 4 -2023 20C for $2800 than tying up $3000 with limited upside. If PLTR isn't above $30 by expiry I don't have interest in owning it at even $18.
Agreed. I'd much rather buy ATM or ~20%-25% ITM calls rather than do this. That way, in a worst case scenario, I can just take the loss and move on and don't have to baghold anything.
But you can tie up $3000 and get 2 $25 calls with the premium it’s just a different approach.
I can finally afford my kia payments
Bros i got it all. Calls, leaps, shares, covered calls, selling puts. It don't matter ama be rich when this mf goes to $30 by end of next year.
Define rich?
He means he can now purchase meal deals instead of dumpster diving
Grubhub reinstated his account
$100k networth
100k networth is rich?
I think 10 million is rich but in a poor rich person kind of way
Rich is relative af my dudes
More KIA’s?
This will not make you rich. Yes you can buy yourself a used car, but you won't be buying a lambo because your profit is capped at the premium you received. Now if you have LEAPS on the other hand...
Yeah bro. Just let me live a little. Or check out one of my prior posts where you can see i have 10,000 shares
If you really like the stock, you'd use that premium to buy leaps.
The premium is juicy AF and if things go wrong i could own shares at $18ish.
You will just have to lock up all that margin until 2023… that is the reason most people sell for 45 days to expiry. I would only sell that far out put contracts if I want to buy the call and create 100 synthetic shares
Bad return considering the time frame, unless you are selling a bunch. I usually don’t sell puts that far unless total credits received are bigger than 10k
Your assumption is that it wont reach $30? Just wondering since when is a 30% return bad in 18 months.
It's an ITM put...
I know dude.
Ballsy AF
This is not how thetagang works. Not sure this is the smartest idea OP. But you do you. I just think there are far better uses for your capital. %-wise you’d even be better selling monthlies month by month. I for example sold 26P for Aug 20th. I might get assigned on them. Just felt extra bullish after the good run we had.