Options trading

Uber
zxysjeth

Go to company page Uber

zxysjeth
Jul 6, 2021 20 Comments

Looking to hear from someone who has continuously done options for years. I am currently practicing cc and csp. Looking into getting into wheel strategy on spy/tsla. It seems simple enough to automate and possibly 0.5% return per week.

#personalfinance #options

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TOP 20 Comments
  • Amazon
    itsatrapx

    Go to company page Amazon

    itsatrapx
    Don’t kid yourself. There is nothing called guaranteed return.
    Jul 7, 2021 0
  • lol 0.5% per week. I've got some amazing snake oil I can sell you that'll give you 2% per week!
    Jul 7, 2021 0
  • Apple
     stonk

    Go to company page Apple

     stonk
    0.5%? wut buy fds
    Jul 6, 2021 7
  • Adobe
    OpqF38

    Go to company page Adobe

    OpqF38
    Awww young and wishful
    Jul 7, 2021 0
  • Google
    dogefather

    Go to company page Google

    dogefather
    Lol. So much misinformation on this thread itself.

    So you are in the right direction. CC is your way to guaranteed no-worse scenario - but it does not guarantee gain as you can still lose if prices of stocks fall lower than premiums you collected.

    For CC, you should be aware of somethings:

    1. The price of weeklies is very low. You will do better with 2% in premium for monthlies than 0.5% for weeklies. So choose carefully.

    2. The CC premiums are wild for highly volatile companies. So will have to track them for few months to identify what works. Each stock has own behaviour.

    3. Automation is the way forward. I use IBKR APIs to automate most of the trades.
    Jul 7, 2021 1
    • New
      porange

      New

      porange
      1) would you actually get 4x premium for monthlies vs weeklies? I’d expect more like 3x premium for monthlies, given high theta decay in the last week
      3) Do you roll or just let them expire/assign?
      Jul 7, 2021