over the last 4 or 5 months i have been doing a lot of option writing. on stocks . mostly out of the money straddles on stocks. tsla. nvda, aapl, msft, nflx, amzn, goog, zoom, ba,3 and others. i'm using short dated usually less than a week. depending on the issue i write puts and calls about 5% out. usually 80% expire worthless.
i also sometimes write covered calls. buying the underlying stock and selling calls about 3% out. again short dated, 4 or 5 days. I do the same with selling puts and shorting the stock.
this strategy is working very well. occasionally markets move violently against me i was recently short tsla calls when they were announced they were joining sp 500. covered my losses that next morning and moved on since then i have pounded the tesla options selling puts and calls and collecting the premiums on a weekly basis.
i like writing options. its like i'm an insurance company collecting premiums. its nice to watch them expire worthless.
short dated is best because the time premium erodes rapidly. sometimes i have positions in 5 stocks. it helps being well capitalized so you can cover the margin requirements.
this has been a very profitable few months. prosperity greenman
Merry Christmas! Great to hear from you again!
I sold some options for the first time and have done so over the last couple months. Mostly successful. I wish I had done it sooner.
Writing options is a great vehicle, but you want to be well capitalized. The upside is clearly defined and limited while the downside is not. Have your exit/defense strategies clearly defined.
Hi Tim I haven't been by this forum for a few yrs. Glad I stopped by today, I have been playing with the option selling and buying on paper and I am liking the results. My question is are u using a broker or doing it yourself threw an app like Robin Hood or an online brokerage firm. Any help would be appreciated.
Great Christmas present/topic for MarketForum's trading section!
Especially wonderful to read from some of our posters that have been quiet for awhile.
Keep it coming!
https://www.investopedia.com/articles/optioninvestor/09/selling-options.asp
TV meteorologist wxgrant was a frequent poster here for quite awhile..............generously sharing his weather expertise and real time trades.
One of his favorites was selling/writing options:
Moderna(MRNA)
14 responses |
Started by wxgrant - June 3, 2020, 4:38 p.m.
Hiya Sarge Shultz.
I use a broker. I seldom write options anymore other than very sepcific setups. I like writing puts on stocks where I am bullish because the worst case of getting assigned on a long term bullish position adds premium. Stuart (S.A.) Johnstons "Trading options to Win" is my bible. Known as SAJ here on MF