re: Options Trading Thread

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Opened Iron Condors on Roku and UPST. Roughly $40 per in credit.

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Tell us your strikes.

I’m not familiar with UPST, but there’s very decent IV (I.e. premium) on ROKU. And after being filleted after that last earnings miss, it seems to have settled into the range you’ve selected for your ICs.

Good luck with those.

Good move placing a tight spread on that ROKU IC. Have you got some decent time left on that one?

Update. Roku looks like a loss(would have to jump 2 bucks), Upstart was closed at noonish for $12 so profit.

I also purchased my first 0D option. After selling my AMZN debit spread for very nice profit, I saw that AMZN puts were cheap. I felt that it would not hold all it's gains, so I purchased 3 puts at .20 and sold for .75

Will continue my quest to learn new tactics.

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Roku looks like a loss(would have to jump 2 bucks)

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And just like that… now up $2.07 intraday.

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Nice buy/sell trades.

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Thank you!

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As far as ROKU goes, like you, I expected stronger support and for it to remain in that range.

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I really did too. Today it's up to 63.20 (4%) I do have a PMCC on Roku that I sell calls on weekly or every other week.

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We’re seeing a nice pick up in the VIX today. Back above 16 and climbing with this early session sell off - so premiums are getting rich(er). Unlike last week (economic news), traders seem to be hitting the exits early today and not waiting for tomorrow’s announcement. I’m selling relatively light far OTM 0DTE SPX put spread positions into this.

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Purchased my first SPY debit spread after the sell off. Ends friday, and up 22% right now. 315/517

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Purchased my first SPY debit spread after the sell off. Ends friday, and up 22% right now. 315/517

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Nice. Any post-purchase pop in vol/VIX should be your friend. Do you have a sell target price?

With the comeback in the SPX, I threw on two fairly large lots of 0DTE SPX call spreads. I see the risk being more to the downside on a day like today. So far, so good.

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I do more of a percentage.. between 35% up. I have never been "greedy". Profit is profit. Advise on that?

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Not really. Especially with shorter dated options, gamma can get wild. So establishing an acceptable percentage profit target, and sticking to it, is certainly the wiser strategy than falling prey to greed.

The VIX is up about 7% today, finally back above 16. I don’t trade or even rely on the VIX by itself to make trades. It’s just one factor. But since I’m a premium seller and I only trade SPX options in my business account, the level or range of the VIX gives me a reference point for how much risk or account allocation I should go with.

Since Tom Sosnoff has done some extensive work in this area (and has a great deal of experience in the option selling world), I use his guidepost as general reference:

VIX is greater than 40
50% max account allocation

VIX is between 30 and 40
40% max account allocation

VIX is between 20 and 30
35% max account allocation

VIX is between 15 and 20
30% max account allocation

VIX is between 10 and 15
25% max account allocation

It applies to all types of SPX (or SPY) based net credit trades.

I trade quite a few synthetic strangles on SPX. Those are just iron condors with extremely wide wings. It would be fairly impossible for me (or most individual traders) to execute an actual strangle on SPX. So I have to buy “protective” wings to lessen the buying power reduction or margin requirement.