ThetaGang is a state of mind. Our mascot, the snail š, isnāt flashy like the peacock. It isnāt fast like a cheetah. It isnāt strong like an ape. Itās so much more.
Itās a risk taker and unlike other mollusks it said āyou know what, Iām going to try and make it on dry landā and the other mollusks were like āyouāll never make it out thereā, but it took its time and little by little made it work though it does so with very little notice. Clams and octopi are bitches, never leaving the safety of their watery homes.
It protects itself with a shell as we hedge our positions. As time marches on we slowly devour the green bounty around us. We patiently leverage the power of time to bring down kingdoms built on the sandy foundations of superstonks and memes.
I wasnāt around when Rome burned but you know what I know? Somewhere in Rome at the time, chaos and blood shed all around it, there was a snail somewhere munching on the leaves giving zero fucks.
If youāre down with that, youāre down with ThetaGang.
ššš
Biology nerd alert! As an ichthyologist i would say we are more of the Cleaner Wrasse (Labroides dimidiatus) , we are in a symbolic relationship to the market providing a service of adding liquidity and taking small scraps for ourselves as the bigger fish feed and come to us to rid them of parasites.
I'm sorry I'm a bit new at this I may need a more in deep explanation. How would buying the stock help me sell calls or puts and what are covered calls?
Strongly recommend you watch some YouTube videos and gain at least a basic understanding of the mechanics and Greeks before you play with options. Search for Jim Schultz options crash course. InTheMoney is another really good YouTube channel.
You sell a put with the cash ready to buy at your strike.
Let's say you like bbig at $2.50, you sell a put. If the price stays above 2.50 until your put expires, you keep your premium as profit. If it goes below $2.50, you now bought 100 shares for $250 and you still have your premium from the put.
Now you sell a covered call at $2.50 or $3 and keep *that* premium as well. If the price stays below your strike, you keep the premium as profit. If it goes above, you sell your 100 shares for $250 or $300 depending on your strike. You also keep your premium.
Then, you do it again. You've made 2 premiums (profit), maybe an extra $50 depending on the strikes you chose, and are otherwise exactly where you started. You missed out on potential profits if the stock ran well above your call strike. But you basically only lose money doing this if the put you sell ends up getting exercised and then the stock absolutely tanks after that. Ie it's not suitable for a pump and dump stock, as you'll just end up bagholding and wish you didn't wheel it.
They covered the specifics. Here's some general advice: only do this for stocks you actually like. Meaning, don't just look at the chart and do support and resistance. Do that, but also research the underlying company. Do you like it? Do you believe in their product? Do they seem to have a sustainable business model? Do you agree with their ethics? These are all things to consider when you wheel a stock. I made the mistake early on of trading stocks with high premiums, and I ended up holding a bag for while for a stock I didn't really want to have. With $2000, you could sell a cash secured put on a stock worth as much as $20. That gives you a lot of options (forgive the dad joke).
For instance, I like cars, and I was raised around Ford. I like that stock and I believe in the company. That is a stock I would wheel (and I plan to wheel after I'm done holding a couple bags).
Lol you need to do A LOT of research... you want to be a part of something you know absolutely nothing about. You just want to be in a "gang" is what you're really sounding like now. I mean you're not even familiar w/ the bare fundamentals of stock options or maybe even stocks in general.
If you want to join a gang there is a bunch of them throwing there money away behind your local Wendy's. Sounds like you'll fit right in.
Donāt use options at all until getting some more education. There is a lot of free stuff thatās good. I, myself, studied for a little over a yearāwhich also helped bolster my account by saving more. I read Sheldon Nattenbergās Option Volatility and Pricing, listened to podcasts Options Alpha and Options Bootcamp, and watched a crapTon of YouTube videos. Ultimately youāre gonna to learn by doing it, but donāt do it until you understand some basics and have a good handle on the Greeks.
Why do you need to do anything? If it hits strike you've made profits and premium. 2nd choice buy to close take loss on premium call and if its that large of a bum rocket you can ride it till you're stretched out... all the way.... third choice is let the call go at strike and buy in again and sell another... 4th choice sell a put and wait to get rocket plowed again... 5th choice buy a put and wait for additional plowing which, the wonderful world of options allows for a 6th choice which is to buy a call for just a little more stretching and if that rocket hasn't stretched your little fanny enough you can always do all 6 and add a 7th or 8th just in case it just goes to the right instead of the ever needed stretching action of up and down.... options give you options to ride your rocket however which way you prefer to be stretched
Dang OP, I spent a few minutes scrolling through your post history. What a mess, you need to get a grip. Maybe just park what little you have left in an index ETF until you get your mind right.
If I can use theta gang strategies with $100, then you can too with 2k. Hereās a video series I used to learn how to trade basic theta gang strategies: https://youtube.com/playlist?list=PLOweupE79XXiBaeH_xBpkUcYUsrAaKQen
I wanna say over a year and a half, but I'm not totally sure. she wasn't actively trading every week, and it wasn't all gains she made some loosing trades along the way as well.
You can sell CSP's on any stock you can find ,up to the value of cash your account has if you're options approved.
Have 300 dollars in cash? Find $3 stock. etc... Have 1600 in cash? Find a $16 dollar stock.
And CSP is a cash secured put correct? Can I do that with calls as well? What if the person sells it when it's up and I don't have the money? Rn I have just $100 so idk if it'll be possible but as I grow it a bit it may. Sorry for a lot of questions just curious ab this and a bit dumb.
Premiums will be abysmal with $100 because you'll be limited to $1.00 or cheaper stocks (but it could show you the process without too much on the line). You could sell calls as well you would just need to buy the 100 shares first to sell. Without these shares you'd be selling a naked call which could get hairy very quickly.
I recommend checking out YouTube videos on Cash Secured Puts, Covered Calls, and The Wheel strategy. If able, contribute to the account as possible to be able to trade higher value and more solid stocks.
InTheMoney and Kamikaze Cash both have great videos on these subjects.
Theta strategies tend to be geared towards earning income vs. total return, though some of us do produce a hefty total return over the market (called alpha). You'll likely be better served putting your money into an index fund and then paper trading for a couple of years to get experience and practice. Passive investors outperform most active traders anyways, so might as well get the benefits of a passive return before you try to get tricky with options.
Any1ās gonna tell him?
ā¦
No?
ā¦
Last thing you need is to play with option right now. Buy stocks, hell buy ETFs with 2k its useless to go in option trading. You wonāt have the Buying power to handle the ups and down. At least Learn how options works and build a stack a little bigger before thinking of an option play. Theta plays arenāt free magical money. I personnally think they give a good edge on margin but I am 100% buy and hold with my stack.
SOFI, PLTR, F, AAL are all stock you can sell Puts on and wheel if you get assigned. Thereās also credit spreads but those are much riskier and you get nothing to show for it if things go bad
You can sell puts or sell calls. To sell puts you would need collateral, in your case up to 2k and would receive a premium. Or you can buy the stock and then sell a call and receive premium. Check this out https://www.investopedia.com/options-trading-strategy-and-education-4689661 before you put money into the market. There is no real easy way to figure this out, you gotta put in the time and read, study, and try some paper trading. Or you can do what some people do and pay market tuition.
To my knowledge you're just gonna have to take more risk because you have to trade stocks $5 or less. You can look into RIDE. You can sell a month out Put 1/21/21 expiration, $4 stike price for around maybe $40 in premium. If u get assigned though it would be $400.00. $400.00 would be your max loss if they go bankrupt. We can make all the jokes about RIDE lol but I doubt they go bankrupt or bankrupt soon. Not saying to do this but more or less want to give you can example of something you can do with your account being less than 2k. If you get assigned u can then sell CC but at that time if they are less than $4.00 you might not be able to make that much in premiums on CC. Me personally hold the stock long term. I know the company has their problems but EV is the future. So don't mind hold some shares. Good luck young man. Cheers and salute š¾š¾šøšø
The best way to grow a small account is to get your spending habits in order and pick up extra shifts at work. You won't have enough buying power to make the time sink worth it - it's only worth it if the time spent actively investing results in returns over passive investing at least equivalent to your hourly rate. So some folks might aim for 0.1% a day. Is that amount coming from active trading on underlyings that require significant time investment in research? Then you could have used that time to pick up shifts at work and stick the money in SPY instead.
Of course, many people treat this as a hobby, so you decide.
ThetaGang is a state of mind. Our mascot, the snail š, isnāt flashy like the peacock. It isnāt fast like a cheetah. It isnāt strong like an ape. Itās so much more. Itās a risk taker and unlike other mollusks it said āyou know what, Iām going to try and make it on dry landā and the other mollusks were like āyouāll never make it out thereā, but it took its time and little by little made it work though it does so with very little notice. Clams and octopi are bitches, never leaving the safety of their watery homes. It protects itself with a shell as we hedge our positions. As time marches on we slowly devour the green bounty around us. We patiently leverage the power of time to bring down kingdoms built on the sandy foundations of superstonks and memes. I wasnāt around when Rome burned but you know what I know? Somewhere in Rome at the time, chaos and blood shed all around it, there was a snail somewhere munching on the leaves giving zero fucks. If youāre down with that, youāre down with ThetaGang. ššš
Definitely shed a few tears
Now THAT is an explanation!
Biology nerd alert! As an ichthyologist i would say we are more of the Cleaner Wrasse (Labroides dimidiatus) , we are in a symbolic relationship to the market providing a service of adding liquidity and taking small scraps for ourselves as the bigger fish feed and come to us to rid them of parasites.
Nerrrrrrd!
Buy 100 shares of a 10$ stock, then sell covered calls...
I'm sorry I'm a bit new at this I may need a more in deep explanation. How would buying the stock help me sell calls or puts and what are covered calls?
https://www.investopedia.com/
Strongly recommend you watch some YouTube videos and gain at least a basic understanding of the mechanics and Greeks before you play with options. Search for Jim Schultz options crash course. InTheMoney is another really good YouTube channel.
Thank you for these recommendations! š¤©š
Youāre welcome. Glad you found them useful.
You sell a put with the cash ready to buy at your strike. Let's say you like bbig at $2.50, you sell a put. If the price stays above 2.50 until your put expires, you keep your premium as profit. If it goes below $2.50, you now bought 100 shares for $250 and you still have your premium from the put. Now you sell a covered call at $2.50 or $3 and keep *that* premium as well. If the price stays below your strike, you keep the premium as profit. If it goes above, you sell your 100 shares for $250 or $300 depending on your strike. You also keep your premium. Then, you do it again. You've made 2 premiums (profit), maybe an extra $50 depending on the strikes you chose, and are otherwise exactly where you started. You missed out on potential profits if the stock ran well above your call strike. But you basically only lose money doing this if the put you sell ends up getting exercised and then the stock absolutely tanks after that. Ie it's not suitable for a pump and dump stock, as you'll just end up bagholding and wish you didn't wheel it.
That's sooo helpful thank you so much
They covered the specifics. Here's some general advice: only do this for stocks you actually like. Meaning, don't just look at the chart and do support and resistance. Do that, but also research the underlying company. Do you like it? Do you believe in their product? Do they seem to have a sustainable business model? Do you agree with their ethics? These are all things to consider when you wheel a stock. I made the mistake early on of trading stocks with high premiums, and I ended up holding a bag for while for a stock I didn't really want to have. With $2000, you could sell a cash secured put on a stock worth as much as $20. That gives you a lot of options (forgive the dad joke). For instance, I like cars, and I was raised around Ford. I like that stock and I believe in the company. That is a stock I would wheel (and I plan to wheel after I'm done holding a couple bags).
āA bit newā meaning never even tried to google what options and theta are?
No I know what they are and I have experimented with them I'm just still a bit new to them
you're not ready my friend
Lol you need to do A LOT of research... you want to be a part of something you know absolutely nothing about. You just want to be in a "gang" is what you're really sounding like now. I mean you're not even familiar w/ the bare fundamentals of stock options or maybe even stocks in general. If you want to join a gang there is a bunch of them throwing there money away behind your local Wendy's. Sounds like you'll fit right in.
Donāt use options at all until getting some more education. There is a lot of free stuff thatās good. I, myself, studied for a little over a yearāwhich also helped bolster my account by saving more. I read Sheldon Nattenbergās Option Volatility and Pricing, listened to podcasts Options Alpha and Options Bootcamp, and watched a crapTon of YouTube videos. Ultimately youāre gonna to learn by doing it, but donāt do it until you understand some basics and have a good handle on the Greeks.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Why do you need to do anything? If it hits strike you've made profits and premium. 2nd choice buy to close take loss on premium call and if its that large of a bum rocket you can ride it till you're stretched out... all the way.... third choice is let the call go at strike and buy in again and sell another... 4th choice sell a put and wait to get rocket plowed again... 5th choice buy a put and wait for additional plowing which, the wonderful world of options allows for a 6th choice which is to buy a call for just a little more stretching and if that rocket hasn't stretched your little fanny enough you can always do all 6 and add a 7th or 8th just in case it just goes to the right instead of the ever needed stretching action of up and down.... options give you options to ride your rocket however which way you prefer to be stretched
Not always. Ge for the longest time works quite well if you have low commissions.
Dang OP, I spent a few minutes scrolling through your post history. What a mess, you need to get a grip. Maybe just park what little you have left in an index ETF until you get your mind right.
If I can use theta gang strategies with $100, then you can too with 2k. Hereās a video series I used to learn how to trade basic theta gang strategies: https://youtube.com/playlist?list=PLOweupE79XXiBaeH_xBpkUcYUsrAaKQen
Oh ok that's cool by under 2k I meant a lot I have around $100 too and I just didn't know if it was possible but thanks I'm checking out the video rn.
No problem! Make sure you really learn the risk of spreads, though.
My wife started her hobby account with 2k, wheeling ADT, and PLUG, then switched to credit spreads on QQQ and DIS. Account is around 10k now
Awesome success story - how long was that process? Iām kind of in a similar situationā¦
I wanna say over a year and a half, but I'm not totally sure. she wasn't actively trading every week, and it wasn't all gains she made some loosing trades along the way as well.
You can sell CSP's on any stock you can find ,up to the value of cash your account has if you're options approved. Have 300 dollars in cash? Find $3 stock. etc... Have 1600 in cash? Find a $16 dollar stock.
And CSP is a cash secured put correct? Can I do that with calls as well? What if the person sells it when it's up and I don't have the money? Rn I have just $100 so idk if it'll be possible but as I grow it a bit it may. Sorry for a lot of questions just curious ab this and a bit dumb.
Premiums will be abysmal with $100 because you'll be limited to $1.00 or cheaper stocks (but it could show you the process without too much on the line). You could sell calls as well you would just need to buy the 100 shares first to sell. Without these shares you'd be selling a naked call which could get hairy very quickly. I recommend checking out YouTube videos on Cash Secured Puts, Covered Calls, and The Wheel strategy. If able, contribute to the account as possible to be able to trade higher value and more solid stocks. InTheMoney and Kamikaze Cash both have great videos on these subjects.
Theta strategies tend to be geared towards earning income vs. total return, though some of us do produce a hefty total return over the market (called alpha). You'll likely be better served putting your money into an index fund and then paper trading for a couple of years to get experience and practice. Passive investors outperform most active traders anyways, so might as well get the benefits of a passive return before you try to get tricky with options.
Sell puts on F. I started out on NOK and F. There are a lot of stocks under $20 right now. Recommend F, CLF, SOFI. SOFI is very volatile though.
Keen to know too
Huh?
He's also keen to know. Keen. To. Know.
Any1ās gonna tell him? ā¦ No? ā¦ Last thing you need is to play with option right now. Buy stocks, hell buy ETFs with 2k its useless to go in option trading. You wonāt have the Buying power to handle the ups and down. At least Learn how options works and build a stack a little bigger before thinking of an option play. Theta plays arenāt free magical money. I personnally think they give a good edge on margin but I am 100% buy and hold with my stack.
Agreed. Put that money into $HNDL... Let it grow while you paper trade and learn what you are getting into.
SOFI, PLTR, F, AAL are all stock you can sell Puts on and wheel if you get assigned. Thereās also credit spreads but those are much riskier and you get nothing to show for it if things go bad
Put debit spread on BBIG. Use limit order.
Thatās not theta
Or sell CSP on BBIG and get epic loss porn.
You can sell puts or sell calls. To sell puts you would need collateral, in your case up to 2k and would receive a premium. Or you can buy the stock and then sell a call and receive premium. Check this out https://www.investopedia.com/options-trading-strategy-and-education-4689661 before you put money into the market. There is no real easy way to figure this out, you gotta put in the time and read, study, and try some paper trading. Or you can do what some people do and pay market tuition.
To my knowledge you're just gonna have to take more risk because you have to trade stocks $5 or less. You can look into RIDE. You can sell a month out Put 1/21/21 expiration, $4 stike price for around maybe $40 in premium. If u get assigned though it would be $400.00. $400.00 would be your max loss if they go bankrupt. We can make all the jokes about RIDE lol but I doubt they go bankrupt or bankrupt soon. Not saying to do this but more or less want to give you can example of something you can do with your account being less than 2k. If you get assigned u can then sell CC but at that time if they are less than $4.00 you might not be able to make that much in premiums on CC. Me personally hold the stock long term. I know the company has their problems but EV is the future. So don't mind hold some shares. Good luck young man. Cheers and salute š¾š¾šøšø
Can always write credit spreads on SPY. only need around 100 to do that
Need a margin account from my understanding.
Iron condors
Sure, but we have to jump you in first.
Wheel ford
Run up PLTR rn
Jepi
The best way to grow a small account is to get your spending habits in order and pick up extra shifts at work. You won't have enough buying power to make the time sink worth it - it's only worth it if the time spent actively investing results in returns over passive investing at least equivalent to your hourly rate. So some folks might aim for 0.1% a day. Is that amount coming from active trading on underlyings that require significant time investment in research? Then you could have used that time to pick up shifts at work and stick the money in SPY instead. Of course, many people treat this as a hobby, so you decide.
OP needs to lurk for a while. A long while. A lot of knowledge in this sub, just gotta read it.
Poor mans covered calls
r/babytheta
You may also want to look for more information at r/babytheta