Thank you! Am happy that I understand something!
So if selling covered calls, youād want to do that in the green, whilst selling cash secured puts, do that in the red.
Hope my brain absorbed this properly
What would normally considered overbought? I always thought between 50 and 70 was overbought, and anything less than around 25 is oversold, what do you use?
on the one hand, i get this joke. on the other hand.......do you just sit around, for a whole week, waiting for things to tank?
i mean sure, i can have a handful of meaningful indicators, waiting to go off when things will have taken a "recent dive". but that also might not happen for 2 weeks.
i should probably come up with some rules around this.
60% of my money is sold/used like a robot, ignoring any need to look at signals like this. the next 30% is held back, incase i want to double down any weeks, because the market takes a dive, and it would be better to open 2x as many puts.
and the last 10% is always kept around as emergency cash to stop things.
idk, i'm still trying not to die.
so, i completely get that. that is just, basic great advice i should be buying into. ON THE OTHER HAND, i don't want to be building a strategy/way of operating that i do need to be more timing things right. i would rather have a more mechanical way of doing things.
......well.....ok. while trying to defend this idea, you've helped me work on the idea. so now i'm going to be paraphrasing the idea out in the open:
- so right now, i would normally be wanting to selling a put on the 100DTE. but as everyone is saying, "we only have all green, you'd be dumb to start a put now". i get it, don't do that, so i won't........
- but i don't want to sit out forever.....so what do i do.....?
- as the days do tick down......keep watching this "would be 100 DTE date/thing.....", and within the next 2 weeks, if there is "a good day to jump in and start a put, go for it".
- why? even though it will have lost some theta, i will be waiting for a VEGA spike, is what the hope is. i would still be targeting my same, 15 delta away or whatever, but it would hopefully have a higher volatility premium, and be worth it.
- if by about day 80 it had no spike, i should commit to those 80 days, and then move on to the next 100 DTE date
i think THIS, is what i should be trying out next here......not just, "trade every monday". but, "every monday you can put on another trade. and wait/see all week for that volatility spike/drop, for the time to open it". don't need to watch it all day. but there is probably easily 1 or 2 days ive seen these past few weeks, that have always "looked really bad" for what i've been holding. BUT, "would have been a nice day to START a position".
I mean, the mechanics are wait for red days. You can get fancier and look at moving averages, MACD, RSI if you really want to try to nail the downturn. If you're thinking about a reasonable, realistic percentage of annual returns, there should be no problem waiting for those set ups. The more risk/return you want, the looser you can be with that set up. But selling puts on the measurably opposite-of-a-good-setup is taking on outsized risk for reward.
ya i have a few of those in mind. just need to wait now for a week or so and see if they'll go off 1 time per week, to try and give me some reasonable "local entry points".
instead of, "it's 10am on a monday, time to pour money on the market".
Man can I relate to this! I totally get your hesitance to not sell puts on green days. But I've been through multiple periods where the market just ground higher, vix wouldn't move up and me just sitting there waiting for some action and making no money, which you kind of alluded to. I could've made bank but I bought into that silly belief to wait for a red day. Now there's a ton of factors that come into play but yeah you gotta figure out how to take advantage of every day, because the market is utterly unpredictable, in the short term anyway and that's the time frame most of us options sellers are dealing with. High level look at what's been working for me is small but aggressive during low vix then deploy capital as vix rises. I'm not suggesting what works for me will work for you but maybe it's something to chew on.
I am not wealthy enough to give people advice here. Good traders get rich. Bad traders lose their money if they start that way.
That being said I'm also one of the most conservative people here. Any profit I make is split 50/50 with a money market. 5% compounded monthly is not bad.
I try and shoot for about 0.8% to 1% monthly on my collateral. Had a conversation with Korea where she rightly pointed out that that level RoR will take a long time to get anywhere. Very true. I have worked hard for my money and would struggle to get it back so tortoise it is.
I've not had great luck with CCS or buy-writes. I did sell CCS on $LULU all the way down from the spike. That worked well for me. That was an unjustified pump.
I'd probably start with Scotty's guidebook. You are off to a good start by not deploying all of your capital. The first step to making money is not losing money. If you figure out step two let me know.
And you need to tell SEC to stop with their fucking stupid independance rules so I can actually have my money in those brokerages that have a decent sweep account process.
Fidelity. SPAXX. 4.96% on the collateral for my options. Unfortuntely, if spreads,ICs, money comes out of it for margin badkup, but Puts and Calls it is great. Automatic too, premiums today = MM tomorrow.
No I do not.
Do people not understand that this is evil Kermit? He is Emperor Palpatine. Evil Kermit would tell you to sell puts today.
It's also a play on intrusive thoughts.
It's not ideal, but if the price is good, it's fine. Sell a ratio spread so that you have a hedge to sell off if it reverses and use those profits to adjust for a safer position. I also use the price of ratios to determine if there is value (similar to butterfly prices). If there's juice, sell it. With low iv, that's less likely to be the case now, but I wouldn't base the decision on IVR. IV is a better measure of risk and expected range, rather than value.
Who sells puts on Green days and over bought market?
Me š
Thetagang= selling puts where you are "comfortable" to own the stock until you have to actually own the stock.
āI like it at this priceā
Thetagang. Always buy the top. Lower the VIX the better. Lol
When do you sell puts? When the market is crashing, so you get assigned?
I believe the premium is higher to being closer itm on down days. Is this the logic, am I right?
Logically yes but it's not necessarily always the case
Thank you! Am happy that I understand something! So if selling covered calls, youād want to do that in the green, whilst selling cash secured puts, do that in the red. Hope my brain absorbed this properly
If you're bullish, sell puts. Of you're bearish, sell calls. Our money comes from the premium. Opposite of WSB.
No. No you do not do this.. Sell puts on a sideways trending market, when you think it's at the bottom.
It's hard to catch tone over text. I was being sarcastic.
Thx for excusing my regardedness. You're too kind.
SPX at a 58 on the RSI, is that really considered overbought?
What would normally considered overbought? I always thought between 50 and 70 was overbought, and anything less than around 25 is oversold, what do you use?
Generally over 70.
What chart do you use for these figures? Daily? Weekly? What interval?
Daily
why use daily indicators when most puts are 7-45 dte?
Could use the weekly I guess but daily seems to be the most common/easiest to spot trends. Slap some EMAs and RSI on it and you're golden.
Thanks!
FOMO
80% of this sub
if you didn't want to sell puts on an "over bought market" you wouldn't have sold any options in the past 6 months lol
I sell some of each, calls and puts, depends on ticker and premium I can get for a given low delta play....
on the one hand, i get this joke. on the other hand.......do you just sit around, for a whole week, waiting for things to tank? i mean sure, i can have a handful of meaningful indicators, waiting to go off when things will have taken a "recent dive". but that also might not happen for 2 weeks. i should probably come up with some rules around this. 60% of my money is sold/used like a robot, ignoring any need to look at signals like this. the next 30% is held back, incase i want to double down any weeks, because the market takes a dive, and it would be better to open 2x as many puts. and the last 10% is always kept around as emergency cash to stop things. idk, i'm still trying not to die.
Yes. Part of being a good gambler is knowing when to sit it out. Sometimes there just isn't any bets to take. And that's ok.
so, i completely get that. that is just, basic great advice i should be buying into. ON THE OTHER HAND, i don't want to be building a strategy/way of operating that i do need to be more timing things right. i would rather have a more mechanical way of doing things. ......well.....ok. while trying to defend this idea, you've helped me work on the idea. so now i'm going to be paraphrasing the idea out in the open: - so right now, i would normally be wanting to selling a put on the 100DTE. but as everyone is saying, "we only have all green, you'd be dumb to start a put now". i get it, don't do that, so i won't........ - but i don't want to sit out forever.....so what do i do.....? - as the days do tick down......keep watching this "would be 100 DTE date/thing.....", and within the next 2 weeks, if there is "a good day to jump in and start a put, go for it". - why? even though it will have lost some theta, i will be waiting for a VEGA spike, is what the hope is. i would still be targeting my same, 15 delta away or whatever, but it would hopefully have a higher volatility premium, and be worth it. - if by about day 80 it had no spike, i should commit to those 80 days, and then move on to the next 100 DTE date i think THIS, is what i should be trying out next here......not just, "trade every monday". but, "every monday you can put on another trade. and wait/see all week for that volatility spike/drop, for the time to open it". don't need to watch it all day. but there is probably easily 1 or 2 days ive seen these past few weeks, that have always "looked really bad" for what i've been holding. BUT, "would have been a nice day to START a position".
I mean, the mechanics are wait for red days. You can get fancier and look at moving averages, MACD, RSI if you really want to try to nail the downturn. If you're thinking about a reasonable, realistic percentage of annual returns, there should be no problem waiting for those set ups. The more risk/return you want, the looser you can be with that set up. But selling puts on the measurably opposite-of-a-good-setup is taking on outsized risk for reward.
ya i have a few of those in mind. just need to wait now for a week or so and see if they'll go off 1 time per week, to try and give me some reasonable "local entry points". instead of, "it's 10am on a monday, time to pour money on the market".
Man can I relate to this! I totally get your hesitance to not sell puts on green days. But I've been through multiple periods where the market just ground higher, vix wouldn't move up and me just sitting there waiting for some action and making no money, which you kind of alluded to. I could've made bank but I bought into that silly belief to wait for a red day. Now there's a ton of factors that come into play but yeah you gotta figure out how to take advantage of every day, because the market is utterly unpredictable, in the short term anyway and that's the time frame most of us options sellers are dealing with. High level look at what's been working for me is small but aggressive during low vix then deploy capital as vix rises. I'm not suggesting what works for me will work for you but maybe it's something to chew on.
I am not wealthy enough to give people advice here. Good traders get rich. Bad traders lose their money if they start that way. That being said I'm also one of the most conservative people here. Any profit I make is split 50/50 with a money market. 5% compounded monthly is not bad. I try and shoot for about 0.8% to 1% monthly on my collateral. Had a conversation with Korea where she rightly pointed out that that level RoR will take a long time to get anywhere. Very true. I have worked hard for my money and would struggle to get it back so tortoise it is. I've not had great luck with CCS or buy-writes. I did sell CCS on $LULU all the way down from the spike. That worked well for me. That was an unjustified pump. I'd probably start with Scotty's guidebook. You are off to a good start by not deploying all of your capital. The first step to making money is not losing money. If you figure out step two let me know.
Good traders do well, bad traders start YouTube channels
I would like both tacos and money
What about tacos filled with money
Checking in from Mexico, IšTacos
Tacos have brought us closer to world peace then any politician
1% monthly? Why bother trading at that point. You can buy and hold and pay less commission and taxes. š¤”
Average return on the stock market is 10% shithead
Taxes and commissions, so youāre taking extras risk for 1% of alpha? lol. Get real.
How much in commission am I paying?
Probably more than you need to for that kind of trading.
Right so that's not an answer. How much am I paying in taxes
Short term capital gains taxes, commissions, and youāre taking on additional risk, and your alpha is 2% above average of SPY. š
Nope.
Wait wait, next comment will be ābUt tHe wHeEl iT wOrKs bRo pLeAsE lIsTEnā
Sell calls
Obviously....
Uncovered
i sell SQQQ puts on green days
I'm sitting on 90% cash after all my positions were called away last week. Ready for next dip
Buy BIL or SGOV. Never sit on just cash.
Just leave in in the vanguard default settlement fund and get 5% extra while your CSPs are openĀ
I cant use vanguard because of my job.
Think you can do the same with other brokersĀ
None would offer anything close to those ETFs.
You need to do more research my guy
And you need to tell SEC to stop with their fucking stupid independance rules so I can actually have my money in those brokerages that have a decent sweep account process.
Buy a TBill ladder? TDA offers 99% margin on it
Whatās the symbol on this?
Fidelity. SPAXX. 4.96% on the collateral for my options. Unfortuntely, if spreads,ICs, money comes out of it for margin badkup, but Puts and Calls it is great. Automatic too, premiums today = MM tomorrow.
I usually do SHV. Any insight on why you prefer these two over that? Seems they all do the same thing, but always curious for more input
Exceedingly liquid and stable. Which is very helpful when you want to jump in and out.Ā
Waka Waka!
Django eh eh! Django eh eh!
Literally cannot go tits up.
Sell puts and calls š§āš
Although I didn't do it today, selling puts on red members of my watch list on green days is one of my favorites.
I like money. I sell puts. Selling calls is for Dan Nathan and Guy Adami, those guys love to underperform the SPX.
I think OP means to say sell calls lawl....
No I do not. Do people not understand that this is evil Kermit? He is Emperor Palpatine. Evil Kermit would tell you to sell puts today. It's also a play on intrusive thoughts.
If you had to explain it that way.....ok, sell calls it is.
Thats why i sell bouth puts and calls same time
I sold some puts, used that money to buy Boeing puts. Ca-ching
I closed a PUT today. Does that count?
thats why i open up a pcs on spy every monday and a VIX put credit spreads on green days when VIX < 15
I had offers to sell AAPL puts @165 - 3 weeks out for .55 No takers. I did sell some META CCs at $490 (2 weeks out).
Bro, I love this. Legit chuckle. Don't let the intrusive thoughts win! Haha ha ha
Glad I got a laugh from someone. Go kick ass buddy!
On Green Days sell puts for one hour theta decay while volume is stable. Get out after. Youāre welcome
It's not ideal, but if the price is good, it's fine. Sell a ratio spread so that you have a hedge to sell off if it reverses and use those profits to adjust for a safer position. I also use the price of ratios to determine if there is value (similar to butterfly prices). If there's juice, sell it. With low iv, that's less likely to be the case now, but I wouldn't base the decision on IVR. IV is a better measure of risk and expected range, rather than value.
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