Stock Market Options, Calls, Puts, and Spreads.

[TallMan_J]

Any brehs on this board trade Options? I’ve been a long-term investor for a long time, but I recently started making plays with spreads and Iron Condors etc.. Regarding Options, I’m not playing with big money (save that for long-term), but smaller trades. My first goal is to get up to profiting to $50.00 per trading day. To me, it’s like a hobby that you can earn money from. A little passive income.

If there isn’t a thread already active (I haven’t looked), maybe we can swap strategies and plays that we’re making. Like a more serious TheColi version of r/Wallstreetbets. If this thread doesn’t take off or a thread like this already exists, I’ll simply delete it.

Let’s get this bread, brehs!

 

[Macallik86]

I know there are a handful of option trades in the Boiler Room thread, but it isn't specific to option trading. I hear you on working on getting a consistent outcome. I'm trying to do the same thing myself. I don't trade options as much as I used to but I like the idea of diagonal spreads the most... the idea of getting paid to wait for the market to go in your direction is really appealing to me.

What about you?

 

[LV Koopa]

I trade here and there. Most of my knowledge from a few books, youtube videos, and really just understanding basic finance and economics.

The #1 thing I will say:
Do not day trade. It is a waste of time and the odds of anyone making it big are extremely low. Once you understand how stock exchanges and brokerage platforms work (ask yourself WHO is on the other side of the trade) you start to see how rigged some games are.

I use Ally Invest, but I may switch over to IB's platform sometime soon.

 

[TallMan_J]

I know there are a handful of option trades in the Boiler Room thread, but it isn't specific to option trading. I hear you on working on getting a consistent outcome. I'm trying to do the same thing myself. I don't trade options as much as I used to but I like the idea of diagonal spreads the most... the idea of getting paid to wait for the market to go in your direction is really appealing to me.

What about you?

Long terms, I buy shyt and don't even look at it. My TSP is up significantly, and my personal (for fun) portfolio is decent.

As far as short-terms, I'm new. I've been studying and learning for about 2 weeks. I use Robinhood. Bought an SPY spread that expired in a week. This was my first option trade ever. I went down the next day and I was -$34. shyt was volatile in the wrong direction and I bytched up. I told myself, that if it comes back up to $0, I was going to close the option. Later the next day, it was up +$1 and closed it at that price. Only made one dollar, but i'll take it for my first Option Trade.

My second Option Trade....Now I have 2 Iron Condors on Disney and Walmart that expire on Friday (07/24). If the Disney expires between $117-$120, I profit $60+. If Walmart expires between $130-$134, I profit $69+. Basically doubles the money that I initially invested. If either gets volatile and either drops or raises out of those margins, I simply lose the $60 or $69 that I put in. I'm expecting both prices to stay relatively the same.

It's like gambling a lil bit. I'll let you brehs know what happens. I'm hoping to make a lil $130-ish come up off of these two lil Iron Condors.

 

[TallMan_J]

What about you?

I came up off of those two Iron Condors. They expired and I gained $137 for the week. Basically double the investment. Gonna do some research and do it again with the same strategy. Gotta be smart and not invest with your emotions. I'm trying my best not to blow up this account. I'm getting the hang of it brehs.


I can post a pic if you guys want.

 

[Doomsday]

I came up off of those two Iron Condors. They expired and I gained $137 for the week. Basically double the investment. Gonna do some research and do it again with the same strategy. Gotta be smart and not invest with your emotions. I'm trying my best not to blow up this account. I'm getting the hang of it brehs.


I can post a pic if you guys want.

Post em. I eat weekly off my options. Easy money.

 

[TallMan_J]

Post em. I eat weekly off my options. Easy money.

We gon’ be alright brehs. We’ve only just begun. Let’s get this bread!


Got any tips and strategies, breh. Any plays?

 

[Doomsday]

It's a good start my dude.

The secret is to find options that expire weekly, ideally cheap stocks. Buy 100 shares, and eat off the premium from covered calls.

Easy money.

 

[Swirv]

I came up off of those two Iron Condors. They expired and I gained $137 for the week. Basically double the investment. Gonna do some research and do it again with the same strategy. Gotta be smart and not invest with your emotions. I'm trying my best not to blow up this account. I'm getting the hang of it brehs.


I can post a pic if you guys want.

Post it. I’m studying options at the moment. Id love to read more about everyone’s options experiences

 

[TallMan_J]

Post it. I’m studying options at the moment. Id love to read more about everyone’s options experiences

I took the pic down. I'll post the link again in a few. I'll let you know.

 

[TallMan_J]

Post it. I’m studying options at the moment. Id love to read more about everyone’s options experiences

I didn’t want to leave this pic up, but fukk it. I’ll leave it up for a bit. I don’t like posting gains, as it seems like bragging. But let’s consider this education and trading knowledge with my brehs.

It isn’t much, but I’m proud of it. I’ll also put a pic of the play I’m making this week once I make it later on today. It won’t go throw until the Market opens tomorrow. It’ll be another Iron Condor that’ll expire on Friday.

 

[TallMan_J]

Post it. I’m studying options at the moment. Id love to read more about everyone’s options experiences

Okay. So I made another play with an Iron Condor with Salesforce. If the price expires on 07/31 (Friday) in between $185-ish and $190-ish, I’ll double my $196. The most that I can lose is that $196 that I put in. I’m hoping that it goes down a little bit tomorrow. I’d be comfortable if it were more in the middle.

I’ve been watching Salesforce and it has not been volatile. I’m expecting it to stay in between those prices. As you can see in the pic below, it only moved $0.50 last week and only $2.50 for the entire month.

If I get any doubt, I can opt out and sell it before expiration for a gain or for a loss, depending on the price of Salesforce at the time I decide to opt out. When the market opens tomorrow morning, my order will go through.

Scared money doesn’t make money, but I still don’t want to blow up this account. You win some, and you lose some. The goal is to win more than you lose. These are modest plays, and I’m not afraid to lose that $196.

I’m new to short term investing, myself. I’m only showing you brehs one of my strategies. THIS IS NOT FINANCIAL ADVICE, and I’m not an expert/advisor or guru. This is only a hobby and investing for ME that happens to provide some additional passive income.

 

[Swirv]

Okay. So I made another play with an Iron Condor with Salesforce. If the price expires on 07/31 (Friday) in between $185-ish and $190-ish, I’ll double my $196. The most that I can lose is that $196 that I put in. I’m hoping that it goes down a little bit tomorrow. I’d be comfortable if it were more in the middle.

I’ve been watching Salesforce and it has not been volatile. I’m expecting it to stay in between those prices. As you can see in the pic below, it only moved $0.50 last week and only $2.50 for the entire month.

If I get any doubt, I can opt out and sell it before expiration for a gain or for a loss, depending on the price of Salesforce at the time I decide to opt out. When the market opens tomorrow morning, my order will go through.

Scared money doesn’t make money, but I still don’t want to blow up this account. You win some, and you lose some. The goal is to win more than you lose. These are modest plays, and I’m not afraid to lose that $196.

I’m new to short term investing, myself. I’m only showing you brehs one of my strategies. THIS IS NOT FINANCIAL ADVICE, and I’m not an expert/advisor or guru. This is only a hobby and investing for ME that happens to provide some additional passive income.

I appreciate you posting your play, I don’t need to see your account balance.

So as the option holder if the price of the option increases and the underlying stock price doesn’t enter the sweet spot, it doesn’t matter because you can make money selling to someone else since it’s before expiration?

 

[TallMan_J]

I appreciate you posting your play, I don’t need to see your account balance.

So as the option holder if the price of the option increases and the underlying stock price doesn’t enter the sweet spot, it doesn’t matter because you can make money selling to someone else since it’s before expiration?

No worries. That's just my RobinHood account. It doesn't show my personal information or anything.

This particular option spread and strategy is called an "Iron Condor". There are plenty of Youtube videos that explain Iron Condors thoroughly and better than I can. As time passes and gets closer to expiration, as long as the price of the stock stays in between those numbers (in the green), the value of your option increases. If the price goes up or down too much (in the red), you will lose money. You can play it safe and sell it before expiration for a smaller profit (or smaller loss), or you can wait until expiration for the full profit (or full loss). Iron Condors are for if you think the stock price will stay relatively the same during a certain amount of time.

There are other ways to play options and spreads. If you think that the stock will go up, you buy and sell calls. If you think the price will go down, you buy and sell puts. There are also ways to limit your risks and rewards, and ways to increase your risks and rewards. My advice is to watch Youtube videos/channels, checkout Reddit, and learn as much as you can. When you get a little confidence, try out a small spread on a smaller stock. Start with like $30 and try to double it in a week.

Trade smart. If you go on Reddit r/wallstreetbets , you will see a lot of those guys making $100k+ plays. Sometimes they win, and sometimes they lose. They often call it "YOLO" or whatever. I don't recommend doing that, but we're all grown men and are different. Examples below.

Dude lost $200k+ in one week.



Or this guy made $100k+ in one week...




It's all about how you want to trade, breh. I like playing it safe and being more strategic. I don't like to lose my hard earned money so fast. I'd rather slowly and steadily build up wealth. Let me know what you decide to do and how it goes, win or lose.

 

[Swirv]

No worries. That's just my RobinHood account. It doesn't show my personal information or anything.

This particular option spread and strategy is called an "Iron Condor". There are plenty of Youtube videos that explain Iron Condors thoroughly and better than I can. As time passes and gets closer to expiration, as long as the price of the stock stays in between those numbers (in the green), the value of your option increases. If the price goes up or down too much (in the red), you will lose money. You can play it safe and sell it before expiration for a smaller profit (or smaller loss), or you can wait until expiration for the full profit (or full loss). Iron Condors are for if you think the stock price will stay relatively the same during a certain amount of time.

There are other ways to play options and spreads. If you think that the stock will go up, you buy and sell calls. If you think the price will go down, you buy and sell puts. There are also ways to limit your risks and rewards, and ways to increase your risks and rewards. My advice is to watch Youtube videos/channels, checkout Reddit, and learn as much as you can. When you get a little confidence, try out a small spread on a smaller stock. Start with like $30 and try to double it in a week.

Trade smart. If you go on Reddit r/wallstreetbets , you will see a lot of those guys making $100k+ plays. Sometimes they win, and sometimes they lose. They often call it "YOLO" or whatever. I don't recommend doing that, but we're all grown men and are different. Examples below.

Dude lost $200k+ in one week.



Or this guy made $100k+ in one week...




It's all about how you want to trade, breh. I like playing it safe and being more strategic. I don't like to lose my hard earned money so fast. I'd rather slowly and steadily build up wealth. Let me know what you decide to do and how it goes, win or lose.

I appreciate the explanation. I was confused about who the parties were. I thought those buying calls were being underwritten by those buying puts. Just realized nah the buyers of calls are being underwritten by the sellers of calls. Same for puts. Now I see how each side contributes to the iron condor.

before I start trading I need to have a firm grasp on the Greeks now. I’m watching the thread for updates on your plays though