All things STOCKS

#12,529
#12,529
They tricked me. I decided I would wait for the move down and then buy a little bit of UPRO in a couple of accounts. That 2nd move down, bang, lost 5% in 20 minutes. :eek:

Oh well.
 
#12,542
#12,542
Thunder Good-Oil said:
DOG is a short themed ETF for about $35. So shorting the short makes it a bullish DOW position. Buy PUTS. Buy the ETF and sell covered CALLS.
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Interesting. Looks like it resets daily, though, and thin volume/doesn't have weekly options, so not an ideal vehicle for my idea.
 
#12,543
#12,543
Velo Vol said:
Interesting. Looks like it resets daily, though, and thin volume/doesn't have weekly options, so not an ideal vehicle for my idea.
Click to expand...

The daily volume of the underlying isn’t too thin - a million or two shares a day. But true, it isn’t a weekly. Options volumes and spreads are a lot different than stocks. The spreads are very different imo. When I want to sell a contract I set the limit just a bit below the ASK and it usually executes soon after.
 
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#12,545
#12,545
Velo Vol said:
Interesting. Looks like it resets daily, though, and thin volume/doesn't have weekly options, so not an ideal vehicle for my idea.
Click to expand...

Yes. The leveraged ETFs aren’t generally buy and hold securities. After they fall by a huge percentage they’re not getting close to back at the same place when the underlying security returns to the level it was before the fall. Honestly, most seem to almost always trend toward zero. Seem like short candidates, but the margin interest could add up. Better to buy puts I guess.

However I have had CURE as a buy and hold for many years and it has done well. Sold half a couple of years ago. CURE might be the rare exception. Great industry. Great demographics.

LABU puts are a “derivative of a derivative” that I have in my toy box. I haven’t been assigned yet, but I’ve not sold many put contracts either. I might sell that put soon though. If it looks like there’s not going to be another near term huge sell off.
 
#12,546
#12,546
Velo Vol said:
I'm looking into credit spreads.
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Multi-legged options aren’t on my radar. The simple singles are hard enough to follow the logic. I’ve selected “sell to close” option positions more than once when my intent was to buy to close. The broker’s platform alerted me that it was an impossible order. I only sell to open. I buy to close every time. It’s slowly getting easier to keep up with. After about 60 trades and assignments.
 
#12,547
#12,547
Thunder Good-Oil said:
Multi-legged options aren’t on my radar. The simple singles are hard enough to follow the logic. I’ve selected “sell to close” option positions more than once when my intent was to buy to close. The broker’s platform alerted me that it was an impossible order. I only sell to open. I buy to close every time. It’s slowly getting easier to keep up with. After about 60 trades and assignments.
Click to expand...
Looks like I need to get a higher tier authorization at Fidelity first, so I can't see if it's a simple few clicks or not. On paper it's not a complex strategy. You just got to make sure you're buying and selling the right thing on the order.
 
#12,550
#12,550
Velo Vol said:
I'm looking into credit spreads.
Click to expand...

I am just so theta gang. I can't shake it. And I know why. I never did have the crystal ball delusion, and I can't make myself have it. I am very sure that I have no clue. I've demonstrated it many times.
 
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