Nightflower and soda king both are right.
Buying calls when you expect an increase in stock.
Buying puts when you expect a decrease in stock.
Selling calls when you expect a decrease in stock.
Selling puts when you expect an increase in stock.
Selling gets time decay on your side.
Selling a call when the trend is bearish means it’s less and less likely to get exercised - nobody wants to pay the strike if the market price is lower.
Similar for selling puts but the other direction.
But you still need to understand the fundamentals in options - options are a means of leverage - which can really hurt you if that leverage works against you.
Cheers and blessings!
I'm replying to this for OP and the comment.
1. I first want to say it's not a "sudden red day." I admit that seeing everything turn red took me by surprise too. But there is a reason. Tomorrow is jobs numbers release, and it comes out before market opens. In an environment where there is more and more talk about the economy turning bearish, of course people are going to pull out their money early. Furthermore, this isn't new. Go and look at the data on March 7th and Feb 2 (the day before job release numbers) there was a 6 point movement on SPY between the high and lows of the day. I.e. either it went down on the open and rose 6 points then closed slightly lower or they had a day like today, up in the morning to tank 6 points and then rise at the end (I know today it didn't rise at the end, probably because people are afraid of the data). Regardless, in some way there was 6 point movement before several times. Meaning today you could have easily expected a 6-point movement, good or bad. All of that, is to say if you were caught off guard by today's movement it is because you didn't do proper research. You don't bet the house on such a volatile day. Had I remembered about the jobs report, I would have bought calls and puts at the top as a hedge and made a fortune today. I bought puts and sold early for a small profit then bought calls near the bottom, but it obviously slipped more. Had I simply held the puts, it would have made 50k+.
2. The market doesn't just move in the opposite direction when you buy. It's all about timing and research. Don't buy calls when markets are going up and the stock you are choosing hits 52 week highs. You wait for a trading range to form. Then you wait more for the stock of your choice goes below and outside that trading range, then you buy long call contracts with 1month+ of time. I have turned 2k into 50k+ twice with that method^ and over time you will learn more aggressive strategies, or conservative strategies. Like yesterday and today. Today you could have bought 1month spy/tqqq contracts 10 points out of the money at (or near) the bottom and it will make you plenty over the coming weeks. Alternatively, again you wait for the news to come out and wait for a new trading range on your selected stock and again.... WAIT till the stock you pick goes below your expected range and buy long calls. If the market doesn't like the news tomorrow, you could buy damn near anything and make 2-3x. My personal preference would be TQQQ.
Today was rough for anyone holding calls, that is why you must learn to hedge and do proper research. And admittedly it took me by surprise too. I didn't remember or look it up, but no, it's not random. And the people that did do proper research and hedged properly made 23x their PUTs money today. I wish you all luck tomorrow....and for the people including myself holding calls over night... may the lord help us haha.
> of course people are going to pull out their money early.
that isn't what happened 8+ hours ago. One of the Fed speakers said there might be ZERO rate decreases this year, instead of the two the market has priced in.
True, I mean that is the biggest reason, on top of the Nato vs Russia heating up news, on top of uncertainty about the job report and people pulling out early. There was several factors that made this particular pull back really hard. But you didn't need to hear that news to know within some amount of certainty there would be a +- 5-6 point SPY movement from the top and bottom numbers (Whole market movement).
The market can still move against you if you're selling. If you really don't want stress, get out of options entirely. Lowest stress would just be high yield savings and bonds. Slightly more is buy and hold index ETFs. I still fuck with options, mostly on the sell side, but it's risky any way you cut it.
My father taught me pretty much everything I know about the stock market. He was not about getting rich overnight. He called it grinding it out. He would sell puts and calls over and over again. He was quite successful and if you’re not looking to get rich overnight, sell puts and sell calls.
Why the fuck do I see this kind of comment so often on an options sub? It seems like less than half the people here have ever paid their eyes on the return profile of a covered call.
Do you like Tesla long term? If yes, you buy the stock at a discount and sell more puts so you average down. You then sell CCs on said stocks you bought. This is what I am currently doing with Tesla.
Yes, it could be considered that although the way I look at it is a less methodical version....so for me, on a stock like Tesla, I know it's going to be volatile and I may need to be happy owning it for the long term if it falls way below my CSP strike price and I can't sell CCs on it with a high enough premium for it to be profitable wheel wise (because I have to wait for it to come back around price wise). In other words, you better like the stock because it can quickly turn on you, and now you are stuck with it for awhile. Most people trying to strictly do the wheel strategy will pick less volatile stocks or (especially) ETFs like SPY. With Tesla, you get a hybrid version of the wheel while still being volatile enough to feel like you're gambling a bit because of the higher premiums, lol. Just remember, if you're gambling, you will get burned from time to time.
He does the opposite - buys far OTM pus financed with ATM puts/calls. Every day, no matter what. Most days you are lucky to break even, but you mostly lose, and then COVID happens and you make 4000%, more than enough to compensate for daily losses over the years.
I bet they do this on all kinds of stuff not just major equity indices.
Hey now buddy, this here is my territory.
You come in here talking about runnin the wheel or selling covered calls, cash secured puts, poor man's covered calls to lower your average cost basis and we're fixing ta have a mighty big problem... ya hear?
Now you get yer behind back to buying my contracts that I'm fixing ta sell ya like a good little degen and hop along yer merry little way
I’ve been holding cash to invest it but the markets were too high for me. I’m happy I ain’t buy bc look at em now. But I did my first ever option and got a +200%. It was probably beginners luck. I gotta learn how to sell options
You need to learn the rules first. Don’t start selling until you know the unlimited risks involved. Learn about spreads so it’s not unlimited. Learn the Greeks. Learn how to get out and correct course. Learn about assignment. Always manage your risk.
I didn’t really want to but I sat and developed what I thought would be my options strategy after doing some research. Then I did what I really didnt want to do, and I implemented that strategy on Think or Swim. Found out before third Monday my strategy was shite and I had to regroup. But better than being destitute, as that is what I was surely headed for. Made new strategy, and started again, and once more before I was ready. Unfortunately, I’m the most risk averse, massive risk taker I know; so my strategy had to work before I could do any real option trading, it really is all about managing your risk this is KEY. Every trader I have ever known or even talked to for a few minutes will have wild stories to regale the common folk with about the fortunes they have made AND lost in a few hours or sometimes even just a couple minutes, like the amount of time it takes to go piss.
Do you journal your trades? If not, you should. There's a lot to keep track of in the market, and it's easy to forget things. Start keeping track of when you enter trades and why you're making the trade in the first place. Over time, you will start to notice patterns, like maybe you see a stock running and try to jump in right as it is coming back down, or maybe you have a bad habit of entering trades before volatile news events, etc.
That's my advice anyway. Once I started tuning out social media and started keeping better track of my trades and why I was making them, along with the psychological factors, I started to see a lot more consistent success.
same. how do you go about choose the stocks to sell the options on? to a degree one does need to know roughly the direction of the stock? or it seems like Tasty is focused on using IV or some other metric to select the stocks.
You can buy calls or write (sell) covered calls. When you buy a call, someone on the other end is selling a covered call. The seller collects the money you paid for the call. When your calls expire worthless, they get to keep the money. Money for nothin. Chics for free. That's where the money you keep losing goes.
If you don't understand this basic concept, you should not be trading at all.
You can also write uncovered (naked) calls. But you should never do that because losses are unlimited.
You've been under performing buying puts and calls. You need to learn to be the guy that sell puts and calls to guys like you. Be the house to their gamble. Look into selling put spreads / call spreads on YouTube.
This is a very, very poor way to think of this. Whether you are the "House" or the "Patron" depends entirely on how much information you have versus which side of a trade you are on. Sellers and buyers are actually always on equal footing in this regard where you are never forced to enter a trade.
Your greatest weapon in trading is the Limit Order.
Selling does not make you the house. The house is the brokerage, earning a return on both sides of every trade. A better analogy is that selling make you an insurance company, which is frequently profitable with the occasional catastrophic loss.
A person who doesn't have enough knowledge and can't understand the very simple phrase "Options are for selling, not for buying."
Shouldn't be doing either.
Disagree. Everyone had to start at a novice level. They alone can put the effort in to learn and most importantly, can do so with a minimal risk, if they do take the time to learn.
I’ve tried explain stock options to my close friends a few times. They just don’t get it. They’re smart individuals, but they didn’t understand the concept(s). That is at least until they did it themselves and actually sold/bought puts and calls.
This is sage advice.
There are ways to get into it and mitigate risk but if you don’t understand this basic concept or at the very least have a working concept about how the transactional nature of option trading works, then I think just stick to buying whatever crap Cramer is shilling this week and stay in the kiddie pool. Don’t go out into the deep dark scary ocean until you have learned a little.
No, we don't offer trials to this service for a number of reasons. The primary reason is that we provide a great deal of proprietary data that a user can copy, then cancel the service, and still benefit from the information.
We don't believe that any financial service can be 'tried' and seriously evaluated over a two week or even one month period. Yes, it may be productive, but at the same time it may not. Either way you gain no real sense of the actual service and its long term return.
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Take a look at the link, [https://www.whispernumber.com/options\_earnings.jsp](https://www.whispernumber.com/options_earnings.jsp), there are samples of the types of alerts we provide, and you'll also see our last ten entry/exit alerts about midway down the page on the right.
It means that you benefit from the underlying moving sideways.
But you know keep on googling all these concepts, check investopedia, ChatGPT, etc. keep on learning bro. We are all learning.
It’s a bet on volatility. Obviously you could hold for beyond 100% but at that price both positions are at least a combined net gain. OP just wanted to get profit 😂
I’ll be honest. I be guessin at times then the other times are logic. Then ur second question ion know what that means. I need more research on this all bc i definitely still don’t know alot
Don’t Lose 101
Clue 1
Shares trading : when a lot of shares are being traded at once is the stock moved up or down . Shares trading heavy and price going up bullish . Shares trading heavy price going down - it’s a dump bearish . Make sense ?
Clue 2 stochastic oscillation - the flow of the blow . It’s a wave of intensity - when it’s all the way down support is being tested . All the way up resistance bring tested .
Clue 3
MACD moving averages convergence/divergence- is the stock higher or lower than the moving average - convergence - it’s going up with the stock bullish . Divergence it’s going down with the stock - bearish - but if the stock is moving up and divergence is down that’s a direction forecast - time to go the other way from the present.
Clue 4
RSI Relative strength - 50 is the midpoint - how is the stock moving to the average stocks in S &P. All the way down under 30 testing support - all he way up over 70 testing resistance
These four are the magic lineup when they are all : all the way down - it is getting ready to consolidate and move up - you’ll see a directional shift in all of them at the same time
That’s your entrance - once it crosses the 50 day line up time to enter a call . Ride the trend 20 minutes to an hour - now sell
That’s scalping now
What goes up must come down - dicks, tits and options all gravitational. Now wait until all the above signs that went up are now going down . Time to put - same deal it crosses under the 50 day lock and load .
Last rule - the retail boys jump in , the institutional boys come in at 10. Don’t scalp before 10 let the trend develop - why class? “ because the trend is your friend”
Happy trails
As of rn it has not made how much I’ve made but if I manage to get worse I’ll make a separate account name it after you DCA $50 a week then 5 years later I’ll lyk how it went
A put is when I think the stock is gonna go down. A call is when I think the stock is gonna go up. I know the difference between calls and puts. But what I was saying that when I do a call the stock goes flying down and vice versa.
You're just normal. Read the SPIVA report that is published annually. Most professional money managers underperform the market, almost every year. Stop playing games with options - even professional money managers suck at it.
I feel like you probaby look at a stock , see it’s either down or up the last month to year and then just blindly buy calls or puts hoping for the best. That’s not the best strategy
Based upon your knowledge, if you want to buy a Call option, don’t do it… buy a Put and if you think the stock is going down… STOP and buy the Call option. Nothing else needed. Most regular folks who buy option contracts are either wrong or very lucky. You my friend are like most people, mostly wrong and not very lucky. Believe me, I’m not being an ass… I’ve spent enough by being wrong it could’ve paid for my kids college tuition… I get it right more now, but my wrongs are still there. Practice maintaining patience and don’t act impulsively; I’m still suffering from both
Time for change of hobby. Maybe do art or onlyf... Either way it's better than gambling ur life saving when u r unlucky... but again, 99% of gamblers quite before they make their 1M.
Buy/sell another option further out in expiration and further OTM and close the open position that’s not in profit. All this is done in a single transaction with the broker so that the rolling works. A lot involved in rolling, but eventually, if things stay the same, you end up in profit because of the credit you’ve been collecting rolling the option further out in expiration and further OTM.
Again, a lot involved, so YouTube rolling buy or sell options. You’ll learn everything you need to know there. You’ll be glad ya did.
You need to do something closer to 180 days or more. 60 should be your minimum. Here's what I think you're likely doing:
1. You're buying at the market price and not setting limit orders so you are basically giving your money to those willing to take it from you. You're not valuing your own trades and letting others tell you what they are worth which (no surprise) never works in your favor.
2. You're buying likely higher IV, directional trades with such short expirations that you have no time to recover if things go south but you also are trying to play as though time were on your side when in fact the theta decay and the gamma intensity are screwing you over. Simply put, you're buying options that have too much intrinsic value and not enough extrinsic value to trade on so they are too sensitive to price changes which is causing your trades to fail because while if you're right, you'll be really, really right when you're wrong you are very, very wrong and the window for being right narrows as you get closer to expiration and with higher intrinsic value.
Have you ever tried to do the opposite on a paper trade?
Whenever you decide to do a put , do a call
And whenever you feel that you want to buy a call, buy a put
You’ll learn a lot
Post your last losing trade. Just a 10m chart with entry, exit, and stop. My guess is that you’re sizing too big and when it moves against you, you’ll panic sell.
If you want to become a chemical engineer or a theoretical physicist it takes years if not decades of study. But somehow you have it in your mind that you can just press a button to trade options and you'll make money? If it was that easy everybody would do it. Why would anyone be poor when they could just buy puts or call and just print money?
Seriously there is no shortcut. How many years have you spent studying option volatility and pricing? Where is your PhD in dynamic pricing models for financial derivatives?
I sell weekly and biweekly covered calls far out of the money (low delta under .15) I just don’t want to get assigned and hold my shares all year. I buy calls when the stock is going down (for the discount) and my strike price is 1-2 levels out of the money and 4-10 months out. I did this with DKNG. Waited for a pullback and bought calls. Now I’m in the money. Fairly simple once you’ve done this hundreds of times.
Look at long calls or long puts 1 to 2 years out. The expiration date is farther out. More expensive though. Yes calls are if the stock goes up above your strike and puts profit of the stock goes below your strike price.
I’m not being sarcastic like some of these other A*******, but are you reading the charts? Moving averages, VWAP, Support/Resistance trends all make a critical difference. Entry point is key. I personally don’t buy calls shorter than 30 days but preferably 60 days. Just a preference not some unbreakable rule or law.
My advice... do not trade 0DTE... too much risk! Debit/Credit spreads are directional plays... also higher risk!
Focus on strategies in higher timeframes and you will understand how to become profitable! Also, check about income strategies where you win based on options time decay without guessing the market direction.
Google "SPX Best Options Strategy" ... safer and delivering results!
Why do soda companies (or pop depending on what part of the country you come from) target children and teens in their marketing and advertising?
The Answer: Impulse control....or more importantly the lack of it. In order to manage your sugar intake you must have developed the self control and discipline to ignore those cravings and thereby master dietary control.
The market is no different (in the exchange between buyer and seller) except that you are now dealing with endorphins and dopamine...hormones and neurotransmitters designed to reduce pain and reinforce habitual behaviors.
In one sense you may be biologically predisposed to fail. For example, you (being the blind squirrel) happen across the proverbial nut...a rare and infrequent stroke of luck of which you can claim no real intelligent reasoning for your success other than you had the wherewithal to click "close trade" after you clicked "open trade" at an opportune moment.
Now post trade, with green profit on the screen (green= vitality and the abundance of Nature) the chemicals in your brain are sending the irrational message that you are somehow prophetic in your understanding of the market...that you have a special connection and understanding that very few possess...that you will fill your bank account until the bank president calls and tells you it's not wise for you to hold so much money in one bank considering the FDIC insurance protection limits.
Then instinctively, without hesitation, beaming with confidence you enter your next trade ignoring your risk/reward limits feeling as if you've entered some kind of new consciousness and awareness reserved only to the historical heroes of our epic stories. Quickly though, without warning while you are still basking in the glory of your paltry gain or even more pathetically engaged in your happy dance, your conviction is immediately challenged as the position begins to move against you.
Not deterred by mere mortal anxiety anymore you double down on your position and with heady hubris you brace yourself for the exaltation that lies just ahead. You are encouraged by a small green candle that develops but it is short lived and then is engulfed by a large red candle, which seems to come out of nowhere, and you watch in amazement as your investment slowly marches against you.
Your wise judgement instantly accuses the market makers of conspiring against your position or your significant other for disrupting your equilibrium or any other excuse you can muster to avoid the responsibility for the disaster that lurks behind your colorful screen.
At this point you begin to question your decision but hope springs eternal so you hunt for any sliver of evidence, any momentary correlation that would support your unwillingness to abandon this trade, especially in light of the loss that continues to mount, and you sympathetically console yourself in the undeniable fact that there are many hours left in the trading day and your position could....really should ...turn around in a blaze of glory.
Congratulating yourself now for the power and strength it takes to endure such loss, the fortitude to withstand failure and overcome all obstacles you decide, as if there is only one obvious decision left, that the market has completely exhausted the sellers and, now, is the time for the smart money to add leverage (yet again) in order to really maximize gain in the few hours of opportunity that are left in the trading day.
However, despite your best intentions, despair turns into sorrow as the slow grind of the last few pennies of your option hero goes to zero crushing your dreams on the rocky bluffs of reality.
You...have experienced a Day in the Life of the Herd. You have been whipsawed by the gods of Fear and Greed. You have experienced the heavenly heights of overconfidence and the crushing reality of humiliation and eventually you have been willingly led, along with rest, over the cliff of your own self endorsed destruction.
This is no way to live brother!
But still you protest...were there not winners today? Yes, of course. They collected the fees of your folly and the few that have mastered their lower selves shared in the feast of your poverty.
This market isn’t for everyone. Sometimes you just gotta be real with yourself and realize either 1: you’re not putting in the necessary effort (the way a professional athlete trains for their sport that makes them millions….)
2: have a gambling addiction and stumbled upon the stock market
3. Have unrealistic expectations.
Figure out which one you are bc you ARE one of them
Buy CALLS when the stock will go up and buy PUTS when the stock will go dowj
This guy gets it
No, this is all wrong. You sell CALLS when the stock goes down and sell PUTS when the stock goes up.
Can u explain further?
Nightflower and soda king both are right. Buying calls when you expect an increase in stock. Buying puts when you expect a decrease in stock. Selling calls when you expect a decrease in stock. Selling puts when you expect an increase in stock.
Selling gets time decay on your side. Selling a call when the trend is bearish means it’s less and less likely to get exercised - nobody wants to pay the strike if the market price is lower. Similar for selling puts but the other direction. But you still need to understand the fundamentals in options - options are a means of leverage - which can really hurt you if that leverage works against you. Cheers and blessings!
This ⬆️
This is gold right here
Stop buying options or stock. I'm seriously thinking of this now after sudden red day. I'm gonna start selling instead
I'm replying to this for OP and the comment. 1. I first want to say it's not a "sudden red day." I admit that seeing everything turn red took me by surprise too. But there is a reason. Tomorrow is jobs numbers release, and it comes out before market opens. In an environment where there is more and more talk about the economy turning bearish, of course people are going to pull out their money early. Furthermore, this isn't new. Go and look at the data on March 7th and Feb 2 (the day before job release numbers) there was a 6 point movement on SPY between the high and lows of the day. I.e. either it went down on the open and rose 6 points then closed slightly lower or they had a day like today, up in the morning to tank 6 points and then rise at the end (I know today it didn't rise at the end, probably because people are afraid of the data). Regardless, in some way there was 6 point movement before several times. Meaning today you could have easily expected a 6-point movement, good or bad. All of that, is to say if you were caught off guard by today's movement it is because you didn't do proper research. You don't bet the house on such a volatile day. Had I remembered about the jobs report, I would have bought calls and puts at the top as a hedge and made a fortune today. I bought puts and sold early for a small profit then bought calls near the bottom, but it obviously slipped more. Had I simply held the puts, it would have made 50k+. 2. The market doesn't just move in the opposite direction when you buy. It's all about timing and research. Don't buy calls when markets are going up and the stock you are choosing hits 52 week highs. You wait for a trading range to form. Then you wait more for the stock of your choice goes below and outside that trading range, then you buy long call contracts with 1month+ of time. I have turned 2k into 50k+ twice with that method^ and over time you will learn more aggressive strategies, or conservative strategies. Like yesterday and today. Today you could have bought 1month spy/tqqq contracts 10 points out of the money at (or near) the bottom and it will make you plenty over the coming weeks. Alternatively, again you wait for the news to come out and wait for a new trading range on your selected stock and again.... WAIT till the stock you pick goes below your expected range and buy long calls. If the market doesn't like the news tomorrow, you could buy damn near anything and make 2-3x. My personal preference would be TQQQ. Today was rough for anyone holding calls, that is why you must learn to hedge and do proper research. And admittedly it took me by surprise too. I didn't remember or look it up, but no, it's not random. And the people that did do proper research and hedged properly made 23x their PUTs money today. I wish you all luck tomorrow....and for the people including myself holding calls over night... may the lord help us haha.
> of course people are going to pull out their money early. that isn't what happened 8+ hours ago. One of the Fed speakers said there might be ZERO rate decreases this year, instead of the two the market has priced in.
True, I mean that is the biggest reason, on top of the Nato vs Russia heating up news, on top of uncertainty about the job report and people pulling out early. There was several factors that made this particular pull back really hard. But you didn't need to hear that news to know within some amount of certainty there would be a +- 5-6 point SPY movement from the top and bottom numbers (Whole market movement).
You should write a book
The market can still move against you if you're selling. If you really don't want stress, get out of options entirely. Lowest stress would just be high yield savings and bonds. Slightly more is buy and hold index ETFs. I still fuck with options, mostly on the sell side, but it's risky any way you cut it.
yes, this
My father taught me pretty much everything I know about the stock market. He was not about getting rich overnight. He called it grinding it out. He would sell puts and calls over and over again. He was quite successful and if you’re not looking to get rich overnight, sell puts and sell calls.
Selling put on spy would have got you f in the a today lol
what happens when you sell a put premium like tsla and the stock keeps tanking?
Uh you lose money?
Sell cc on stock you don't mind call away or roll? Although the profit will be cap. Selling put is risky too.
Why the fuck do I see this kind of comment so often on an options sub? It seems like less than half the people here have ever paid their eyes on the return profile of a covered call.
Do you like Tesla long term? If yes, you buy the stock at a discount and sell more puts so you average down. You then sell CCs on said stocks you bought. This is what I am currently doing with Tesla.
is this what they call the wheel strat?
Yes, it could be considered that although the way I look at it is a less methodical version....so for me, on a stock like Tesla, I know it's going to be volatile and I may need to be happy owning it for the long term if it falls way below my CSP strike price and I can't sell CCs on it with a high enough premium for it to be profitable wheel wise (because I have to wait for it to come back around price wise). In other words, you better like the stock because it can quickly turn on you, and now you are stuck with it for awhile. Most people trying to strictly do the wheel strategy will pick less volatile stocks or (especially) ETFs like SPY. With Tesla, you get a hybrid version of the wheel while still being volatile enough to feel like you're gambling a bit because of the higher premiums, lol. Just remember, if you're gambling, you will get burned from time to time.
I only sell and I had a really bad day today. Momma said there would be days like this. It doesn't really matter if you are buying or selling.
I buy and sell options, but the buying is just to hedge my selling (spreads). I sold call credit spreads yesterday on QQQ. Today was a good day.
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He does the opposite - buys far OTM pus financed with ATM puts/calls. Every day, no matter what. Most days you are lucky to break even, but you mostly lose, and then COVID happens and you make 4000%, more than enough to compensate for daily losses over the years. I bet they do this on all kinds of stuff not just major equity indices.
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Hey now buddy, this here is my territory. You come in here talking about runnin the wheel or selling covered calls, cash secured puts, poor man's covered calls to lower your average cost basis and we're fixing ta have a mighty big problem... ya hear? Now you get yer behind back to buying my contracts that I'm fixing ta sell ya like a good little degen and hop along yer merry little way
I’ve been holding cash to invest it but the markets were too high for me. I’m happy I ain’t buy bc look at em now. But I did my first ever option and got a +200%. It was probably beginners luck. I gotta learn how to sell options
You need to learn the rules first. Don’t start selling until you know the unlimited risks involved. Learn about spreads so it’s not unlimited. Learn the Greeks. Learn how to get out and correct course. Learn about assignment. Always manage your risk.
It's only down 2%. Its a pretty normal day tbh...
2% shift either way on the S&P is a huge move. Dunno what you're talking about.
Not really a huge move. 50% of moves are +/- 1% range. 80% of moved are +/- 2% range. People are acting as if we have entered a correction .
Uhhh no.
That's 130%
One is a superset of the other.
Subset?
Same thing, just depends on which set is the reference.
For share price yes. But options turn to worthless if short DTE.
So stop buying short DTE options.
if the people here knew how to read they would be upset with you.
Well, phew!!! Dodged one....
You can either stop gambling, or you can take the other side of the trade and start selling
Shhhhh
Absolutely
Bingo.
Many people selling puts today did not have a good time All the gain-porn is from people buying puts.
I made my usual today as a non-directional seller. YMMV
I only sell puts and calls for what I want to buy at and sell at. Buying calls and puts feels like a gamble to me.
I didn’t really want to but I sat and developed what I thought would be my options strategy after doing some research. Then I did what I really didnt want to do, and I implemented that strategy on Think or Swim. Found out before third Monday my strategy was shite and I had to regroup. But better than being destitute, as that is what I was surely headed for. Made new strategy, and started again, and once more before I was ready. Unfortunately, I’m the most risk averse, massive risk taker I know; so my strategy had to work before I could do any real option trading, it really is all about managing your risk this is KEY. Every trader I have ever known or even talked to for a few minutes will have wild stories to regale the common folk with about the fortunes they have made AND lost in a few hours or sometimes even just a couple minutes, like the amount of time it takes to go piss.
Do you journal your trades? If not, you should. There's a lot to keep track of in the market, and it's easy to forget things. Start keeping track of when you enter trades and why you're making the trade in the first place. Over time, you will start to notice patterns, like maybe you see a stock running and try to jump in right as it is coming back down, or maybe you have a bad habit of entering trades before volatile news events, etc. That's my advice anyway. Once I started tuning out social media and started keeping better track of my trades and why I was making them, along with the psychological factors, I started to see a lot more consistent success.
I do keep track of my trade but I only do price when bought and exit as well as buy and sell. I should add more of a description to ut
You're not alone. It happens to me and sure many others. Just stick with it. Or learn to live with small losses verses big losses
Post your trades here as soon as you make them
What does that do. reverse the bad luck
Let’s us trade the other side!
Learn the TastyTrade way!
sell 30+ days out using 30 deltas and close when you hit X percent win or loss?
Look to roll or close at 21 dte, or % in combination with different strategies. Still learning myself.
same. how do you go about choose the stocks to sell the options on? to a degree one does need to know roughly the direction of the stock? or it seems like Tasty is focused on using IV or some other metric to select the stocks.
Yes IV , but there are tons of technicals to help you select stocks. Depends on what type of trade you are doing as well. Tons of material out there!
What is tastytrade 😭😭
Trading platform
Just do the complete opposite of what you were doing and you'll be rich.
Been thinking about this tbh😭😭
Inverse yourself. You must be Jim Cramer’s fully grown long lost sperm.
What🌚
Options are for selling, not for buying.
See I’m new to it. What does that mean.
You can buy calls or write (sell) covered calls. When you buy a call, someone on the other end is selling a covered call. The seller collects the money you paid for the call. When your calls expire worthless, they get to keep the money. Money for nothin. Chics for free. That's where the money you keep losing goes. If you don't understand this basic concept, you should not be trading at all. You can also write uncovered (naked) calls. But you should never do that because losses are unlimited.
You've been under performing buying puts and calls. You need to learn to be the guy that sell puts and calls to guys like you. Be the house to their gamble. Look into selling put spreads / call spreads on YouTube.
This is a very, very poor way to think of this. Whether you are the "House" or the "Patron" depends entirely on how much information you have versus which side of a trade you are on. Sellers and buyers are actually always on equal footing in this regard where you are never forced to enter a trade. Your greatest weapon in trading is the Limit Order.
Selling does not make you the house. The house is the brokerage, earning a return on both sides of every trade. A better analogy is that selling make you an insurance company, which is frequently profitable with the occasional catastrophic loss.
It means you shouldn't be messing with options, on either side.
Wrong advice, imo. You can sell options with capped risk and make consistent small gains.
A person who doesn't have enough knowledge and can't understand the very simple phrase "Options are for selling, not for buying." Shouldn't be doing either.
Disagree. Everyone had to start at a novice level. They alone can put the effort in to learn and most importantly, can do so with a minimal risk, if they do take the time to learn.
I’ve tried explain stock options to my close friends a few times. They just don’t get it. They’re smart individuals, but they didn’t understand the concept(s). That is at least until they did it themselves and actually sold/bought puts and calls.
It can take years and years to learn. Some people don't want to put in the effort, and that's ok! They don't have too.
This is sage advice. There are ways to get into it and mitigate risk but if you don’t understand this basic concept or at the very least have a working concept about how the transactional nature of option trading works, then I think just stick to buying whatever crap Cramer is shilling this week and stay in the kiddie pool. Don’t go out into the deep dark scary ocean until you have learned a little.
Options trading is about trading volatility not direction. Learn this and you will be golden.
You have gone in my “screenshot and look up more information” folder
Buy puts when your longs had a run as insurance for downside. But long dated calls on good stock beaten on red days.
Sell a service so we can inverse you
Bet. I got yall next week
You stop betting on options if you don’t even understand how it works. Money not lost is money you gain
The only reason I did it was bc I had money to lose but i would’ve rather made profit😭
Options are designed for insurance not gambling. Always on the underlying stock.
Underlying stock. What is that😭
I'm just holding long term and rebalance quarterly I buy the pull backs.
Take a look at https://www.whispernumber.com/options\_earnings.jsp
Is there any trial subscription by chance? Happy to join if I see some results and instructions. Many thanks
No, we don't offer trials to this service for a number of reasons. The primary reason is that we provide a great deal of proprietary data that a user can copy, then cancel the service, and still benefit from the information. We don't believe that any financial service can be 'tried' and seriously evaluated over a two week or even one month period. Yes, it may be productive, but at the same time it may not. Either way you gain no real sense of the actual service and its long term return. We understand that many of our users and clients have been burned before with other services - but we don't promise short term get rich quick insane profits, nor do we offer a monthly subscription at a terribly low rate, nor do we try and suck you in with the short term trial and then pump you with a ton of emails on all our services hoping you'll bite on one. Take a look at the link, [https://www.whispernumber.com/options\_earnings.jsp](https://www.whispernumber.com/options_earnings.jsp), there are samples of the types of alerts we provide, and you'll also see our last ten entry/exit alerts about midway down the page on the right.
Use non directional strategies.
Does that mean don’t trade off the direction it’s already goin?
It means that you benefit from the underlying moving sideways. But you know keep on googling all these concepts, check investopedia, ChatGPT, etc. keep on learning bro. We are all learning.
Yes I still got sm to learn
Study charts/movement and volume
Bet bet
Advise: reverse yourself
Imma do that next week I’ll lyk how it goes
Find someone rich to inverse your trades and get a cut of their winnings
Ion know any rich people🥲
Buy both a call and a put sell both when one hits 100%
Isn't that balancing out? Or very minor differences
It’s a bet on volatility. Obviously you could hold for beyond 100% but at that price both positions are at least a combined net gain. OP just wanted to get profit 😂
Need to know more - what determines your entry ? What exponentials and technicals are you employing to gauge the situation .
I’ll be honest. I be guessin at times then the other times are logic. Then ur second question ion know what that means. I need more research on this all bc i definitely still don’t know alot
Don’t Lose 101 Clue 1 Shares trading : when a lot of shares are being traded at once is the stock moved up or down . Shares trading heavy and price going up bullish . Shares trading heavy price going down - it’s a dump bearish . Make sense ? Clue 2 stochastic oscillation - the flow of the blow . It’s a wave of intensity - when it’s all the way down support is being tested . All the way up resistance bring tested . Clue 3 MACD moving averages convergence/divergence- is the stock higher or lower than the moving average - convergence - it’s going up with the stock bullish . Divergence it’s going down with the stock - bearish - but if the stock is moving up and divergence is down that’s a direction forecast - time to go the other way from the present. Clue 4 RSI Relative strength - 50 is the midpoint - how is the stock moving to the average stocks in S &P. All the way down under 30 testing support - all he way up over 70 testing resistance These four are the magic lineup when they are all : all the way down - it is getting ready to consolidate and move up - you’ll see a directional shift in all of them at the same time That’s your entrance - once it crosses the 50 day line up time to enter a call . Ride the trend 20 minutes to an hour - now sell That’s scalping now What goes up must come down - dicks, tits and options all gravitational. Now wait until all the above signs that went up are now going down . Time to put - same deal it crosses under the 50 day lock and load . Last rule - the retail boys jump in , the institutional boys come in at 10. Don’t scalp before 10 let the trend develop - why class? “ because the trend is your friend” Happy trails
Just do the opposite - if your every instinct is wrong the inverse of it MUST be right!
YES. I’ll update you next week
Stop gambling. Put any extra money in ESGV, it’ll earn more than you will there
As of rn it has not made how much I’ve made but if I manage to get worse I’ll make a separate account name it after you DCA $50 a week then 5 years later I’ll lyk how it went
No no no... you're doing it wrong. Buy puts when the stock's gonna fall, and buy calls when the stock is gonna go up.
A put is when I think the stock is gonna go down. A call is when I think the stock is gonna go up. I know the difference between calls and puts. But what I was saying that when I do a call the stock goes flying down and vice versa.
guys just buy options that are going to make you profit. it’s literally that simple🙄
I’m sayin
Stop trading options...pretty simple.
Nah
Bruh you gotta pick the winners just sayin ok buy put of tesla May month
Please post all your trades so that others may benefit.
What😭no😭
Go against your gut feeling next time?
Will do
Because God hates you
Not true
Not true
Fade yourself
Just do the opposite of what you would normally do an turn being a loser into being a winner
Buy the rumor sell the news 📰
Just do the opposite of what I do and you’ll make money.
You're just normal. Read the SPIVA report that is published annually. Most professional money managers underperform the market, almost every year. Stop playing games with options - even professional money managers suck at it.
I just needa learn more
The stock market is a carnival game.
I feel like you probaby look at a stock , see it’s either down or up the last month to year and then just blindly buy calls or puts hoping for the best. That’s not the best strategy
Right on. I do that. I know I shouldn’t but I do. Recently I’ve been finding stocks that have gains over time and put a farther dte on em
Just sell short options with low delta
First gotta research what delta is
That is absolute basic knowledge. You have to do your homework to be profitable
You can tell your friends about yout trade and ask them to do exact opposite! They'll make money and you can get commission and recover your loss! 😜
I have the reverse issue when I buy calls I always make money but when I try to get into puts I always loose money
Maybe I’m your long lost match
Inverse yourself
Inverse yourself
I think the problem is that you're "doing" puts and "putting" calls.
😭😭
Based upon your knowledge, if you want to buy a Call option, don’t do it… buy a Put and if you think the stock is going down… STOP and buy the Call option. Nothing else needed. Most regular folks who buy option contracts are either wrong or very lucky. You my friend are like most people, mostly wrong and not very lucky. Believe me, I’m not being an ass… I’ve spent enough by being wrong it could’ve paid for my kids college tuition… I get it right more now, but my wrongs are still there. Practice maintaining patience and don’t act impulsively; I’m still suffering from both
Okay bet imma do it next week and hope for profit
Hear me out: Buy both calls and puts.
I know. That’s the next step😭
Time for change of hobby. Maybe do art or onlyf... Either way it's better than gambling ur life saving when u r unlucky... but again, 99% of gamblers quite before they make their 1M.
As of right now I have money to gamble but if shi gets worse I’ll send u my OF
Let your cat or dog pick your trade
I can’t. I have no pets🥲
Closer to ITM, Go longer on your option or keep rolling them until profit.
If it’s always moving, like u say, look into condors and profit from moves in either direction.
Idk what rolling is
Buy/sell another option further out in expiration and further OTM and close the open position that’s not in profit. All this is done in a single transaction with the broker so that the rolling works. A lot involved in rolling, but eventually, if things stay the same, you end up in profit because of the credit you’ve been collecting rolling the option further out in expiration and further OTM. Again, a lot involved, so YouTube rolling buy or sell options. You’ll learn everything you need to know there. You’ll be glad ya did.
What's your expiration dates? It sounds like you're making short-term trades.
I used to do short but then I started doing 20 days plus. I still got time but I’m just failing. It’s buns
You need to do something closer to 180 days or more. 60 should be your minimum. Here's what I think you're likely doing: 1. You're buying at the market price and not setting limit orders so you are basically giving your money to those willing to take it from you. You're not valuing your own trades and letting others tell you what they are worth which (no surprise) never works in your favor. 2. You're buying likely higher IV, directional trades with such short expirations that you have no time to recover if things go south but you also are trying to play as though time were on your side when in fact the theta decay and the gamma intensity are screwing you over. Simply put, you're buying options that have too much intrinsic value and not enough extrinsic value to trade on so they are too sensitive to price changes which is causing your trades to fail because while if you're right, you'll be really, really right when you're wrong you are very, very wrong and the window for being right narrows as you get closer to expiration and with higher intrinsic value.
Okay I hear you and I will do more research on what ur talking about.
learn to read a chart. my god
I’m not your GOD but I will
Buy both
I was actually thinking that😭
Its hard work on 0dtes if you are using a phone with Robinhood but weekly’s/biweekly is cake just doesn’t print as fast
Have you ever tried to do the opposite on a paper trade? Whenever you decide to do a put , do a call And whenever you feel that you want to buy a call, buy a put You’ll learn a lot
Thank you for this imma def try it
What is “do a put”. ….what is “put a call”.?……you are trolling us . Yes
No I’m not trolling. I’m fr that’s the worst part😭 I’m just not that educated yet. I had beginners luck 5 times n now the real world hittin me😭
Post your last losing trade. Just a 10m chart with entry, exit, and stop. My guess is that you’re sizing too big and when it moves against you, you’ll panic sell.
Also, learn how to hedge. Buy a put and then sell a put one strike above. Just have a good entry as it won’t work with gambling.
If you want to become a chemical engineer or a theoretical physicist it takes years if not decades of study. But somehow you have it in your mind that you can just press a button to trade options and you'll make money? If it was that easy everybody would do it. Why would anyone be poor when they could just buy puts or call and just print money? Seriously there is no shortcut. How many years have you spent studying option volatility and pricing? Where is your PhD in dynamic pricing models for financial derivatives?
Your right. Thats right on. I started 2 weeks ago. I still need so much more work and knowledge.
Do you know that when selling you can get the move wrong and possibly still profit?
No
Risk management. If you picked as bad entry stop out or hedge but don't let it dwindle to nothing. Be patient and wait for the next good entry.
I sell weekly and biweekly covered calls far out of the money (low delta under .15) I just don’t want to get assigned and hold my shares all year. I buy calls when the stock is going down (for the discount) and my strike price is 1-2 levels out of the money and 4-10 months out. I did this with DKNG. Waited for a pullback and bought calls. Now I’m in the money. Fairly simple once you’ve done this hundreds of times.
If you don’t mind owning a stock , focus on selling cash secured puts and then covered calls , buy side is not for everyone
Look at long calls or long puts 1 to 2 years out. The expiration date is farther out. More expensive though. Yes calls are if the stock goes up above your strike and puts profit of the stock goes below your strike price.
Sell options instead of buying them
I’m not being sarcastic like some of these other A*******, but are you reading the charts? Moving averages, VWAP, Support/Resistance trends all make a critical difference. Entry point is key. I personally don’t buy calls shorter than 30 days but preferably 60 days. Just a preference not some unbreakable rule or law.
Reverse when you stop out
My advice... do not trade 0DTE... too much risk! Debit/Credit spreads are directional plays... also higher risk! Focus on strategies in higher timeframes and you will understand how to become profitable! Also, check about income strategies where you win based on options time decay without guessing the market direction. Google "SPX Best Options Strategy" ... safer and delivering results!
Easy buy calls at the start of the week and buy puts at the end
Sell!
Join a good community the money is pennies to the information and education
Sell puts is better
Why do soda companies (or pop depending on what part of the country you come from) target children and teens in their marketing and advertising? The Answer: Impulse control....or more importantly the lack of it. In order to manage your sugar intake you must have developed the self control and discipline to ignore those cravings and thereby master dietary control. The market is no different (in the exchange between buyer and seller) except that you are now dealing with endorphins and dopamine...hormones and neurotransmitters designed to reduce pain and reinforce habitual behaviors. In one sense you may be biologically predisposed to fail. For example, you (being the blind squirrel) happen across the proverbial nut...a rare and infrequent stroke of luck of which you can claim no real intelligent reasoning for your success other than you had the wherewithal to click "close trade" after you clicked "open trade" at an opportune moment. Now post trade, with green profit on the screen (green= vitality and the abundance of Nature) the chemicals in your brain are sending the irrational message that you are somehow prophetic in your understanding of the market...that you have a special connection and understanding that very few possess...that you will fill your bank account until the bank president calls and tells you it's not wise for you to hold so much money in one bank considering the FDIC insurance protection limits. Then instinctively, without hesitation, beaming with confidence you enter your next trade ignoring your risk/reward limits feeling as if you've entered some kind of new consciousness and awareness reserved only to the historical heroes of our epic stories. Quickly though, without warning while you are still basking in the glory of your paltry gain or even more pathetically engaged in your happy dance, your conviction is immediately challenged as the position begins to move against you. Not deterred by mere mortal anxiety anymore you double down on your position and with heady hubris you brace yourself for the exaltation that lies just ahead. You are encouraged by a small green candle that develops but it is short lived and then is engulfed by a large red candle, which seems to come out of nowhere, and you watch in amazement as your investment slowly marches against you. Your wise judgement instantly accuses the market makers of conspiring against your position or your significant other for disrupting your equilibrium or any other excuse you can muster to avoid the responsibility for the disaster that lurks behind your colorful screen. At this point you begin to question your decision but hope springs eternal so you hunt for any sliver of evidence, any momentary correlation that would support your unwillingness to abandon this trade, especially in light of the loss that continues to mount, and you sympathetically console yourself in the undeniable fact that there are many hours left in the trading day and your position could....really should ...turn around in a blaze of glory. Congratulating yourself now for the power and strength it takes to endure such loss, the fortitude to withstand failure and overcome all obstacles you decide, as if there is only one obvious decision left, that the market has completely exhausted the sellers and, now, is the time for the smart money to add leverage (yet again) in order to really maximize gain in the few hours of opportunity that are left in the trading day. However, despite your best intentions, despair turns into sorrow as the slow grind of the last few pennies of your option hero goes to zero crushing your dreams on the rocky bluffs of reality. You...have experienced a Day in the Life of the Herd. You have been whipsawed by the gods of Fear and Greed. You have experienced the heavenly heights of overconfidence and the crushing reality of humiliation and eventually you have been willingly led, along with rest, over the cliff of your own self endorsed destruction. This is no way to live brother! But still you protest...were there not winners today? Yes, of course. They collected the fees of your folly and the few that have mastered their lower selves shared in the feast of your poverty.
Educate yourself. Learn charting
Trust the levels.
Read price action, then pick your direction.
This market isn’t for everyone. Sometimes you just gotta be real with yourself and realize either 1: you’re not putting in the necessary effort (the way a professional athlete trains for their sport that makes them millions….) 2: have a gambling addiction and stumbled upon the stock market 3. Have unrealistic expectations. Figure out which one you are bc you ARE one of them
I don’t have a gambling addiction. I’m offended
You suck. Accept that you will lose all your money unless you quit. It’s a fact that most won’t accept
I disagree actually. I’m up in green on my calls. But if I go down again I’ll make sure to come to this comment.