1. "Should i go further out of the money"

  2. SOFI announce good earning Monday and is on a slow and steady rise. At a much lower price than it was at this time in 2022. It’s on the rise and looks good. That’s the backstory.

  3. MANY got burnt trying to catch that falling knife, so we’ve been hesitant about fintech, especially SOFI. My personal bags are heavy, nearly a year old with what looks like another assigned lot from August. So I’m about ready to close out 2022. This is a welcome trend after a long and painful SOFI year.

  4. If it always worked everyone would do it. Don’t forget that

  5. This particular bit of trading wisdom is escaping many this earnings and Fed announcement week with this extremely short volatility play. Somebody got a tip on Discord and this has been touted as the next coming of the Messiah a couple of different places.

  6. Ya I tried it a few times last year after it worked one time and I thought I was a genius. Lost money every other time trying to repeat then just stopped trying

  7. Yes, of course. We try things, they don’t work, we stop doing them. But when we tell others what happened, and it’s ignored because there’s a good batch of hopium in the neighborhood, well … we did our job and didn’t keep the secret. I learned something with kids: Don’t get too specific about some of the messed up things I’ve done; they become more curious than cautious. ;)

  8. No screen shot necessary. I dumped 100 shares of F today at 13.35. Seemed like a good idea, car loans aren’t taken out by people who are struggling. So, I think it’ll drop a little.

  9. Worse than that. Assets journaled in margin will be frozen, you’ll be margin called, and you’ll either have to add $$ to the account to bring the account balance above $25k again, or drop margin and have everything journaled back to cash.

  10. In options, the only really important stuff is delta + theta, IMO. The rest is just fringe unless you want to get fancy. Most people trade options directionally and simply buying a call or a put, so delta + theta (and maybe gamma) are all you really need to worry about.

  11. Agreed. I’m partial to displaying the whole chain on a vertical monitor. It really isn’t that hard to see where the MM see trouble, boredom or extreme volatility. Then it’s just about making a decision and managing them. I call it, “shopping at Walmart.”

  12. The post asked if anyone does this. I do and I explained how I do it. That was the purpose of the entire post. You told me to report back with my trade and I did that too lol

  13. Great. You do this. How many posts did that take to announce? Why are you addressing me? I don’t do this. I have a low opinion of it as a sustainable form of profit. You act as if this a brand new Infinite Money Glitch previously overlooked by ~52 years of American options trading. I’m ok with you believing that. Now you might want to go back and compare notes with somebody who does this. Duh.

  14. Me and you definitely don’t see eye to eye. I imagine you keep a mask on at all times as well. I bet you think it works too

  15. You can imagine all you want. Do people wearing mask offend your warped sense of individual rights? Tough shit. A lot of us are too valuable to others to get sick and quarantine for 5 days, something I’m sure the science denying clowns aren’t very religious about.

  16. Real talk though. I appreciate the chat. I enjoy hearing out other people’s view on things. We don’t agree. So what? I know you wish people who don’t will die but instead of writing people off take time to listen and accept you see it different. No reason to hate anyone

  17. Dying still happens and will happen. Anti vax is heavily connected with republican politics, and what started as parity is now 2:1 deaths. Whatever. Not my fault. I’ve been taking vaccinations my entire life. Not a huge issue. Have been Covid vaccinated 5 times. Sore arm and tired for a day twice. It’s not the killer. Covid is.

  18. I’m aligning heavily this week, and this week only, with Orville Redenbacher’s 30 pack of microwaveable buttered popcorn.

  19. Pro move is getting their kernels and making stove-top popcorn 🤌

  20. Dammit! Now I’m a microwave popcorn bag holder.

  21. 1 & 2dte anything don’t usually pay that well. No guarantees what direction, if any, earnings would send an underlying.

  22. ummm...1 & 2dte pay the most don't they?...a further dated position will always payout less % gains than a 2dte position would opened at the same time

  23. Not in my experience. Quick look at any option chain layered vertically by date will show this. Look at your desired strike. Now look at your desired strike an additional week out. Time decay gets viscous in the short frame as you describe WITH AN OSCILLATING UNDERLYING, and intraday traders can sometimes make profit on that in those ensuing micro fluctuations. But that’s a whole different kind of options trading, and one where your projections probably still wouldn’t be realized.

  24. My dogs don’t like it either. But now there’s so many toys, it takes a couple loads to get them all. So they just get others.

  25. A common early misconception about rolling is that loss is escaped. It isn’t, it comes out of whatever option that’s rolled to.

  26. No. Common standard options contracts are for 100 shares.

  27. Why not in the positive? Are you only saying that because there is a risk of the stock going even lower?

  28. It’s called Downside Protection. Subtract the premium you collected up front and subtract it from the strike. That’s the break-even point for that short put minus a few cents for SEC fees and the closing fee if your brokerage has that.

  29. The draw back to csp.. Let say you wanted to own tesla at 110 back when it was trading at you tossed out a csp for 30 days, tesla moved on and is now trading 170.. Your csp expires worthless and you lose out on the upside VS if you just bought shares.

  30. Worthless as that applies to options nomenclature, however the seller keeps the premium. There’s also nothing stopping outright stock purchase in addition to having a CSP.

  31. I have level 1 in my Roth and was told I can not sell puts. I can buy calls/puts and sell CCs but no CSPs

  32. That is ridiculous! Short puts are fairly safe. If you don’t mind my asking, who are you with?

  33. I started in Usenet. This is Usenet for the masses/stupid with markup

  34. Psychologists, lawyers, doctors, constitutional scholars. We’re a very talented bunch.

  35. Thank you, I was looking at it, knowing it wasn't right, but for the life of me couldn't remember this spelling. Getting older is fun, really.

  36. The other one is queue. Means line, row, order. Not used a lot in America.

  37. Sell half your position. Psychologically easier to cope with. If it pumps on youre still gaining. If it drops you know you at least secured som profits.

  38. That’s better than losing it all. Good suggestion.

  39. Take gains. Thinking things will go higher is usually wrong. The few times you’ll be right will not even out the losses. And eventually you’ll be too broke to play. Fix that quirk or perish. I give this speech about once a week. I’m on my 3rd trading partner in a year.

  40. J/k. I don’t really want them to know who I am. Even proxy notifications bug me. Like … save that tree. I’m not voting.

  41. Buying a company's stock doesn't do anything to help or hurt that company. Have they sold more goods because you bought that stock? Are their customers more satisfied?

  42. Depends on the size of the float and how much has not been sold. But I’m interested in other points of view about this.

  43. NOT true. There are free ride violations that could trigger trading even on a cash marked account. Per the SEC's guidelines on the rule this has nothing to do with trading on cash in an account.

  44. Good Faith Violations pertain to buying but then also selling with Cash Available to Trade but not yet settled cash. This has everything to do with Cash accounts. Having margin negates the need to worry about this, the mistake simply becomes a margin debit.

  45. Correct. The term refers to a non-margin account.

  46. Well it’s like naked shorting. I’ve read very clear and well thought out defenses of it. From the people who hate it, there’s really no legitimate critique I’ve ever heard. Just sounds like a mob with torches and pitchforks to me.

  47. Naked shorting is illegal and rare, and deserves punishment wherever it occurs. No equivocation necessary.

  48. Ahh well, I think I’m confusing terms. I’ve shorted a few stocks and I assumed naked shorting was just shorting without hedging.

  49. No, naked shorting is the selling of stocks where there is no clear legal availability.

  50. You really don’t know how inflation is calculated. All I had to do was Google CPI when I suspected I wasn’t asleep last year and there was something wrong with your numbers. There’s no need to know precisely how CPI is calculated. In addition to citing a CPI-U chart, you used CPI as the standard of inflation measure. Fine. So did I, and none of it points to your assertion that a 2% annualized guesstimate is a valid inflation metric outside of your calculation. 3% may indeed be doable by Q4, but 2% is not where we are at or what we are experiencing.

  51. You could’ve just said “I don’t understand how inflation is calculated” instead of posting all that lol

  52. Yet that wasn’t the issue, even though it’s pretty obvious you don’t know how inflation is calculated. You tossed out a patently erroneous statement about what kind of inflation we’re presenting experiencing.

  53. I have seen several strategies, including always selling calls at the SAME strike as the cash-secured put; selling above adjusted cost basis; and selling at a low delta like 0.16 as mentioned above. I understand your approach might be more fluid, but are any of these particularly superior to the others?

  54. Everything works until it does not. As you caught on, I’m not a fan of rigid strategies much outside of a technique with fluid decisions within. The market is fluid, stock prices are fluid, option prices are fluid. Something somewhere whether it be price reversal, trend reversal, time frame considerations, bad earnings, interest fluctuations, world politics, domestic politics … something somewhere changes and the rigid strategy fails. I cannot speak to that which I do not know, that being daytrading 0dte SPY or other, perhaps rigid strategy works better there for longer. But they do not work without adjustment for very long in a constantly changing market.

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