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  1. #26
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    got it thanks. good luck to you too man. we all gonna need it.
    Quote Originally Posted by up an down View Post
    I am not trading any options... Just holding onto bond etfs and 0% stocks.....what I don't like about selling options during a volatile market is the possibility of margin calls...I have bought and sold corn and soybean options in the past..as well as the futures...the exchange can increase the margin requirements with very little notice...and.. Your broker could also increase the margin requirements..so...you may have to have some very deep pockets if you want to hold onto your trades if they go against you..And of course the advantage of buying options is no margin calls... So you can do it with a smaller amount of $ compared to selling...And probably with less stress....but... You know more about your strategy than I do... I wish you good luck!
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  2. #27
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    wow, was watching DOW $30 3/20/20 puts this morning, some traded stupid rich. like 6-10% of notional for an 11 day period. calmed down a lot, now 5% even though stock down a lot. realize the delta had a lot to do with it but geez. that's were the money is on this stuff but gotta be fast and perhaps able to hedge the delta quickly
    Last edited by kokomas; 03-09-2020 at 09:59 AM.
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  3. #28
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    Sold the DOW $25 3/20 puts for $0.65 this morning. the stock at $30 is down 50% from the highs and yielding over 9% now.
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  4. #29
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    not looking so hot on the first sales. currently in the money by $3.50 on DAL with expiry tomorrow (thanks the Donald) and near strike on Dow for next Friday. glad I posted here and downsized to begin with, appreciate it mags
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  5. #30
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    Been glancing at DAL with your numbers...Stress, man. WTF did it open +5.3 from yesterday's close? Who's buying it overseas?

  6. #31
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    Delta was up with the rest of the market on global policy response and expectation for stimulus in the US. Too little too late. I'm the proud new owner of 200 Delta shares at $40. Since I have set aside the cash to cover these puts I'm alright, just a little shuffle getting the cash in the account from my high yield savings. Will look for a market pop on any Trump airline bailout and in the meantime look at selling calls struck above 40 if there is any juicer there to generate some more income while I wait.

    Dow puts are on strike of $25 for next Friday, not looking great either.

    My buddy did a better job by keeping it to JPM, MSFT, AAPL and he squeezed by Friday without getting put
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  7. #32
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    Oct 2003
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    Quote Originally Posted by kokomas View Post
    Delta was up with the rest of the market on global policy response and expectation for stimulus in the US. Too little too late. I'm the proud new owner of 200 Delta shares at $40. Since I have set aside the cash to cover these puts I'm alright, just a little shuffle getting the cash in the account from my high yield savings. Will look for a market pop on any Trump airline bailout and in the meantime look at selling calls struck above 40 if there is any juicer there to generate some more income while I wait.

    Dow puts are on strike of $25 for next Friday, not looking great either.

    My buddy did a better job by keeping it to JPM, MSFT, AAPL and he squeezed by Friday without getting put
    Bummer.... Better luck next time!!...remember to try to learn something from every trade..win or lose.
    what's so funny about peace, love, and understanding?

  8. #33
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    Quote Originally Posted by kokomas View Post
    Delta was up with the rest of the market on global policy response and expectation for stimulus in the US. Too little too late.
    Even the specialists are wandering in the woods here...

  9. #34
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    airlines getting bid up on this bailout rumor/news. I just sold DAL $40 calls (1 that expires Friday and the other 1 expiring in 3 wks) against my new stock position, taking in $2.10 against the whole position. If called out of my stock position i'll have taken out $2.75 per share and have my capital back to look at more put sales. If don't get called I will look to sell more. Don't want to sell any calls struck below my entry price if I can help it in order not to lock in a loss on the underlying (in case it rallies hard). did it a bit too soon, stock rallied from 35.80 to 37 after/while I was in; would be nice if I had a better technical read.
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  10. #35
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    DOW was up over 20% today at one point, supported by positive comments about china business ramping up as well as CEO buying shares. Runup intensified just as Trump started speaking probably on fiscal stimulus hopes. Tried to buy back those 3/20 $25 puts for $1 to lock in a $0.35 loss but just couldn't get filled before the market softened. going to be a rocky road sitting right on strike with three days to go

    Edit: left the order in the market and got filled at $1.00. overpaid there because I was doing work and not watching. oh well, a $0.35 loss on these puts means I will not get put on Friday and have the capital for more put sales when the bump in US cases comes
    Last edited by kokomas; 03-17-2020 at 12:36 PM. Reason: got filled
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  11. #36
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    Quote Originally Posted by kokomas View Post
    DOW was up over 20% today at one point
    No, maybe up 7% or so at the highs

  12. #37
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    Quote Originally Posted by 4matic View Post
    No, maybe up 7% or so at the highs
    DOW the company, that's what I traded puts on
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  13. #38
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    Well there lesson I learned is not to own an airline heading into a depression. $40 calls expired today on Delta, rolled them to 3week $35 calls to take out a buck. Think the market is going further south and am holding off on further put sales for now. Will keep selling otm calls against the DAL to monetize the rich vol and make myself feel better
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  14. #39
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    Quote Originally Posted by kokomas View Post
    Well there lesson I learned is not to own an airline heading into a depression. $40 calls expired today on Delta, rolled them to 3week $35 calls to take out a buck. Think the market is going further south and am holding off on further put sales for now. Will keep selling otm calls against the DAL to monetize the rich vol and make myself feel better
    .. for what it's worth you need to realize that you are trading during what is possibly the most volatile time In the history of the USA stock market.. whipsaw moves are an everyday occurrence.. This will be one for the history books.. Best wishes and good trades to you

    Sent from my Pixel 2 XL using TGR Forums mobile app
    what's so funny about peace, love, and understanding?

  15. #40
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    The premiums being paid got volatility right now are eye popping! But you're learning and somewhat capping your risk so well done

  16. #41
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    Sell premium when there is no one left to sell it. Until then, enjoy the show.


    Sent from my iPhone using TGR Forums

  17. #42
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    sold 45 puts on VZ yesterday and was looking at ABBV 60's today but just couldn't get anyone to bite. targeting big dividend names I want to add through this downturn regardless.

    DAL rallying hard, challenging my $35 4/9 calls. oh well if I get called the trade will be close to a wash. if not i'll still keep clipping call premium

    bought a couple $3, three week calls on MFA on a lark as well
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  18. #43
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    i'm short covered DAL $35 4/9 call and it is now atm. thinking about selling a calendar spread out to 4/16 to take out another 75 cents before I get called (implied vol is still pretty high a week further out). but brain is not working right, what is downside of doing this? I guess basically just holding the DAL stock for an extra week
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  19. #44
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    yeah I guess its a pretty crappy position to be in, I have a lot of downside and no upside for two weeks. probably not worth extending that any further, just have to ride out. or I guess I could sell some futures to make the position delta neutral. this would lock in some loss on the underlying but could potentially extract vol premium by delta hedging the rest of the way. hmm

    time value = $5
    option delta = 0.58
    I could lock in a loss of $2.1 on the underlying if I sold 42% of my DAL shares now, but could earn $5 if the stock stopped gyrating. but historical vol very high
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  20. #45
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    Quote Originally Posted by kokomas View Post
    i'm short covered DAL $35 4/9 call and it is now atm. thinking about selling a calendar spread out to 4/16 to take out another 75 cents before I get called (implied vol is still pretty high a week further out). but brain is not working right, what is downside of doing this? I guess basically just holding the DAL stock for an extra week
    Do you use a P/L graph for each trade before you make a decision?
    what's so funny about peace, love, and understanding?

  21. #46
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    explicitly no, but I have a pretty good handle on option payouts from years in Eurodollar and tsy option mkts
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  22. #47
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    Quote Originally Posted by kokomas View Post
    explicitly no, but I have a pretty good handle on option payouts from years in Eurodollar and tsy option mkts
    I believe you.. But sometimes brain farts happen...nothing beats looking and reading accurate data to double or triple check yourself
    what's so funny about peace, love, and understanding?

  23. #48
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    you have a good tool to recommend? stuff on schwab is somewhat limited.

    sold a Dow $25 4/03 put just now on the downdraft. don't see any news on the stock. rest of market biased upwards until this qtr end rebal flow behind us
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

  24. #49
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    Quote Originally Posted by kokomas View Post
    you have a good tool to recommend? stuff on schwab is somewhat limited.

    sold a Dow $25 4/03 put just now on the downdraft. don't see any news on the stock. rest of market biased upwards until this qtr end rebal flow behind us
    No I don't..sorry...I have traded futures often and sometimes options.....But never enough to ever make it worth the money to invest in software like that..but..maybe the platform that you use with your broker has something that you could use?... If not search for recommendations on Reddit or Google.
    what's so funny about peace, love, and understanding?

  25. #50
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    Aug 2007
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    sold some deep otm calls to lock in 2x profits on long MFA call position, still have some upside there, just need rates market to stay stable and Fed to keep buying mtgs
    Day Man. Fighter of the Night Man. Champion of the Sun. Master of Karate and Friendship for Everyone.

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