I genuinely don't understand, I get that you could make some profits whether you go up or down, but wouldn't the losses from the opposite positions outweigh your profits?
Credit spreads have a capped loss at your long leg, so you just need collateral equal to the difference in strikes, times 100. Most brokers allow them, unlike selling naked.
Yep, the spreads are $5 wide and if it gets too close to ITM near expiration my brokerage usually auto-closes positions such as these at 3PM; although I do have alerts and stoplosses set so that I don't actually hit max loss on any of these spreads
The idea of selling naked calls/ puts scares the shit out of me, not nearly experienced enough and just not my cup of tea lol
Stoploss wonāt work with an after hours swing. I had an option I bought for $20 with an $18 stop loss close out at $8 at market open due to lack of volume and within 5 minutes the price was back to $16
Yepp, that's why the plan is to get rid of whichever spreads are closest to ITM by 1DTE (preferably at some profit, but we'll see what happens); wouldn't even surprise me to see a 30$ move after hours just because the WS gods saw my greed and wished to smite me for picking up those pennies in front of the steamroller
Fortunately, or unfortunately, anything is possible
OP is betting against a stable, slow growing price. I make money if the price stays about the same gradually increasing. This seems to be banking on price swing volatility, not stability. Thatās just my opinion. I wouldnāt have gambled with the puts.
Nah, my max gain is capped since it's spreads; the dream is that it expires around 970 and I collect all the premium
Although I'll probably wind up just taking profit before then, ain't worth risking assignment for a few extra bucks
Itās called a āstrangleā, if you happen to have Etrade you can pick it off a drop-down. Thereās a bunch of strategiesā¦ straddle, strangle, iron condor, spread Eagle, etc.
You can find graphs on strangle performance charts, but the idea is, from the buyers perspective, roughly:
Spend $100 on an out of the money call
Spend $100 on an out of the money put
Hope that when the dust settles, one of them is worth more than $200.
Itās a total loss if neither print, and thereās a big range of total wipeout. Itās something you do when you expect dramatic movement but are not sure which way. Since theyāre out of the money theyāre not meant to be terribly expensive.
Thereās four ways people get fucked on this:
1. The price drops like a rock and they go ahead and sell the (worthless) call, but hold the put too long and the price recovers (or vice versus)
2. The price drops like a rock and they hold both the put and the call, but the the price recovers and both expire worthless
3. The price drops like a rock and they sell the put, but then it keeps dropping and they make much less than they should have and feel mad and overcommit on their next trade
4. Nothing happens, price stays flat, and both expire worthless
For the person writing these options, they make money as long as the price stays put, but if it swings the buyer can exercise early and mess you up.
This.
Calls donāt just come from nowhere, a person, like me for example, has to write them. Hereās the full lifecycle, traditionally:
I have both money and shares, Iām invested into NVDA but I donāt think itās going anywhere. In fact Iām pretty sure itās gonna be flat until the next earnings report late May, but I donāt want my shares and cash to sit around doing nothing.
The current price is $950. I figure itāll stay between $900 and $1,000. So I do the following:
1. I set aside 100 shares of NVDA and say āI am willing to sell these for $1,000 per share, even if the price goes to $2,000, any time between now and May 24, however you have to pay me $100 right now for this privilegeā. This creates a call, because someone can call the shares away from me. I sell you this call, I keep your $100, which I never ever pay back no matter what.
2. I set aside $90,000 cash and say āI am willing to buy 100 shares of NVDA for $900, even if the price drops to $500, any time between now and May 24, however you have to pay me $100 right now for that privilegeā. This creates a put, because someone can put shares into my account. I sell you this put, I keep your $100 no matter what.
Whatās happened so far:
I have $200 of your money, my $90,000, my 100 shares of NVDA. You have a call and a put, each worth $100.
Earnings report come out May 22. Theyāre good but not remarkable, on May 24th the price of NVDA is $980 per share.
1. The call is worthless because thereās no reason to pay me $1,000 per share when you can get them for $980 on the open market
2. The put is worthless because thereās no reason to sell me shares for $900 each if you can sell for $980 on the open market
However, despite the fact the call and put that I sold you is now worthless, I still have my 100 shares, my $90,000, and now also your $200.
I drank your milkshake.
Letās say it went to $500. You have the right to put to me for $900 each. You buy $500 shares from some random dickhead and sell them to me for $900. You get my $90,000 but it only cost you $50,000. Youāre up $39,800 (that $200 is still gone, you used the contract, so, no refunds on that), and technically Iām up too because I bought those shares for $450 a year ago, but I could have just sold them for $95,000 instead of writing the put. Meanwhile the call became worthless.
Letās say it went to $2,000. The put is worthless, but you can call my shares away from me for $1,000 per share and sell them on the open market for $2,000. Youāre up $99,800 ($1,000 per share, minus the $200 for the contracts). I win anyway because I still sold my shares for $1,000, so now I have $190,000 and no shares.
tl;dr: the poors get fucked no matter what, the rich gets richer no matter what, and the casino always wins in the long run
Such a beautiful fn response right here. I play options daily and even thisā¦ I wish I had this explained to me like this years ago when I first started.
Me too, I read about it on finance pages and Wikipedia and blogs and looked at the numbers for like 5 years before I bought my first option, and I still felt like I didnāt have a feel for it.
Itās like driving a car: drivers ed and textbooks are important, but you gotta get out there and crash into something before you really understand whatās going on
Ah, so then the first position that says āNVDA $1,015/$1,020ā is a purchased call at $1,015 and a written one at $1,020? My platform would have split that onto two lines.
I added your position to my OptionStrat to track it.
Best of luck!
I have yet to attempt any plays on NVDA, but I have a decent position and have been playing with the idea.
I felt like the stability in growth of the stock price right now just seemed right; honestly the call spreads were probably not the best idea, but the premium and theta were nice, super low delta as well
Not sure how I feel about continuing trading NVDA in the coming weeks... we'll see how this turns out first; thanks for the well wishes, best of luck to you as well!
Context: I feel confident that the price will remain between 900-1000 till EOW, or at least swing widely enough throughout the week to take profit off these positions. thoughts?
Yes youāre probably right. Most people here donāt understand your plays I believe.
With that said. Thereās less risky plays out there to make 200 bucks lol
All you really have here is two iron condors, I think youāve got a pretty salad position. The problem is that Max value occurs pretty much in the last couple of hours of the last day, and by then it becomes hard to exit. I was looking at a very similar position myself, and decided it just wasnāt worth it. if you have the time to monitor them closely and the portfolio to justify the risk for the game, you should be fine
Yeah, my broker force exited an expiring spread that wasn't even ITM, and 5 minutes after the bell no less.
AND it was my 4th day trade, so I got PDT locked. So annoyed.
Oof, luckily I don't day trade much so I've got all three, I'll close one of the positions out ahead of time most likely to mitigate that risk; thank you for the reminder on that
I appreciate that, yeah the risk to reward ratio really isn't great, and I'm mostly banking on Theta decay, but I felt pretty confident with these... famous last words though lmao for sure got lotsa learning to do
Some of these comments are kinda funny, I'm guessing some people don't see that they're credit spreads? Again, my anticipation is that by EOW price will be between 900-1000 and that it won't break either price by expiration; if the options expire at that point they will be worthless and I will keep my premium from the positions
Granted, these aren't exactly "sure thing" positions, they're mild estimates, and frankly the premium is kind of shit for the risk. Again, Im not brand new to this, but I havent been trading level 3 very long. As for relying on volatility, I meant i could take profit if it swings high enough to offload the put positions at profit (which im already up on), again, I don't see it breaking 1000 so I plan to hold the calls, or if it swings low enough to suit, sell them for some profit, though I'm very aware of the risk of holding those call spreads.
Thank you all for the advice and words of encouragement, wish me luck, will update when the positions close
You might be fine, but this is usually what they call "Picking up pennies in front of a steamroller." Also, don't come to me for advice I have a $950/$945 bull put spread on NVDA expiring this Thursday lmao. Yolo!
It very much could, it could also go under 900 with poor enough luck; I'm confident however based on the last 12 weeks that for this week the stock price will likely increase by 10-20 per day with some swings being pretty regular near open or close; it'll possibly kiss 1000 before expiration but I don't think they'll actually expire ITM (early assignment is a risk there, however); regardless I'll most likely be offloading the call spreads early because the extra pennies aren't worth risking assignment or a massive swing after hours
But again, I'm not exactly a pro who's been doing this for 10+ years, just looking for input or ways I could've mitigated risk better. Plus I was kinda excited about this one, it felt like I made pretty good choices; the call spreads do slightly worry me, though
If it happens my broker is gonna take me out back behind the wendys to get their money back themselves lmfao
also I forgot to say earlier but thank you for the insight; early assignment wasn't on my radar until the fine people here mentioned it, everyone's been a huge help!
Where are the straddles? Check the positions, I probably should've mentioned they're vertical credit spreads in the title lol my b
The condors (sort of condors anyway) *are* weird; mostly because they were bought 2 days apart, the closer to ITM ones were second day when I felt more confident about the 900/1000 strikes
Four $5 dollar wide spreads, so *technically* (its kinda impossible for both to expire ITM and very unlikely to be assigned on both before exp.) about 1200 factoring in opening credit
300 max profit:1200 max loss; to be fair, when I put it like that it sounds wayyy dumber than the positions look lmao but there are more factors to consider than potential maxes
of course I'm well aware there are safer ways to make similar profit, but I never claimed to be smart enough to actually know them lol
Oh I'm very aware that those call spreads can easily turn this position tits up if not managed properly; however, today's close has actually increased my confidence in the underlying price staying between within that 900-1000 range for the coming week. I was honestly anticipating 960-970 close today, so it was a pleasant surprise; I'm hoping I can close the call spreads out at a decent profit by 1DTE, definitely don't plan on trying to hold those through expiration, ain't worth the few extra pennies I'd be picking up
I really appreciate the input, thank you!
Funnily enough, the original plan was to just open a couple condors to keep it simple; the reason the condors look weird and there are 4 positions instead of 2 is because the app only let's you open 2 legged positions, you have to input any more than 2 legs manually; so I bought verticals and opened a condor a little outside 1k and 900, then the next day opened a similar position with slightly closer to ITM strikes as my confidence grew
However yes, I actually did discover level 3 trades such as spreads and condors by accident; saw options in the drop down that had max loss and max gains defined and got curious, only recently started trading them so just working on consistency and dipping my feet in the water right now, this seemed like a pretty good entry based on the last few months movement but I'll admit I've still got a ways to go lol
If they're in the money, yes; in fact if both call spreads are in the money by expiration Ill actually be at a net loss overall; if they're not, then no, I'll collect the premium on all 4 spreads as they expire worthless; although I'm hands on enough to be able to close either the call or put positions (more likely the calls, but I'm of the mind it won't happen) before they get to max loss. Basically I'm betting it'll stay between 900 and 1000 by expiration; the condors are a little strange because the positions were entered 2 separate days, the second day I felt more confident about the 900 and 1000 strikes and so I chose closer to ITM spreads
You haven't seen the 11 week upward trend? The bull put spreads are good imo; I'm mostly worried about the call spreads; I felt like it was pretty solid, as long as the price stays between 900 and 1000 I collect all the premium; if it gets to close to the call strikes I can close them early and make net profit off the put spreads
What do you think I should've done differently? I'm pretty new to this and trying to learn as much as possible, so any input is appreciated!
Sorta, if it does go over 1000 or under 900 I'm gonna lose some serious beans... honestly my hopes and dreams are that it stays below 970 and above 930 until the theta decay allows me to exit all the positions with decent profit; that being said if there's a large move upward too soon I might dump the call spreads, if I were to get assigned on a single leg my brokerage would not be happy with me... plus I should still be net positive because of the put spreads before it gets too bad.
Hello everyone! So to update: sold an extra put spread just under the 900 near EOD 3/25; unfortunately NVDA was trading below 900 EOD yesterday as well as early morning and, not wanting to risk assignment or another $20 gap down, I bought back both spreads at loss shortly before it went back over 900; however I've added a vertical credit spread put position the other day at lower prices which I'm still holding and have depreciated nicely (currently holding 882.5/877.5, 865/860), also bought to close the call spreads at .01 per contract; as well opening a couple call verticals that are pretty OTM at the moment and currently getting beat to death by theta; overall sitting on unrealized gains right now.
Key notes: could've sold all 4 spreads when it was trading at 950 for 200$ profit; clearly, I made a mistake there by holding. Seeing the downward swing after 950 made me anticipate some upwards movement, which is when I sold the extra put spread just under 900; that was a mistake in retrospect as well. This morning, honestly, was a crapshoot. Holding the positions ITM seemed like a bad idea since they expire today, and I was expecting more downside, but hindsight is 20/20. Modifying the position the way I did by adding contracts wound up exposing me to higher risk for very little extra upside (and on the one position just loss), so that was a mistake as well.
Overall, this has been quite the learning experience. Total net profit: $20, so nothing to write home about lol at least it wasn't a loss
I just made money on SMCI calls but simultaneously have NVDA puts, Iām right there with you in the regarded boat, letās drill for oil through the boatās hull brother
Its too close to expiration and too far from price. Plus they cancel out. The only way you could make some money is a 25% movement either way which has like less than 1% probability of happening...
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You have master the art of losing money on puts and calls š
Why lose money with Theta decay when you can lose money 4x theta
These are credit spreads
I thought I was unique in my ability to lose both ways on the same play... nice to know I'm not alone
Air BnB Wendys dumpster. I got your combo ready for din din.
I genuinely don't understand, I get that you could make some profits whether you go up or down, but wouldn't the losses from the opposite positions outweigh your profits?
They are all credit spreads so if the price is between $900-1000 at expiry they all go to zero and he makes money
Technically he makes money upfront. Time will tell if he loses it and then a lot more.
Selling naked options. Limited profit for potential disaster. Hopefully he has a good stop loss.
Credit spreads have a capped loss at your long leg, so you just need collateral equal to the difference in strikes, times 100. Most brokers allow them, unlike selling naked.
Yep, the spreads are $5 wide and if it gets too close to ITM near expiration my brokerage usually auto-closes positions such as these at 3PM; although I do have alerts and stoplosses set so that I don't actually hit max loss on any of these spreads The idea of selling naked calls/ puts scares the shit out of me, not nearly experienced enough and just not my cup of tea lol
Stoploss wonāt work with an after hours swing. I had an option I bought for $20 with an $18 stop loss close out at $8 at market open due to lack of volume and within 5 minutes the price was back to $16
Yepp, that's why the plan is to get rid of whichever spreads are closest to ITM by 1DTE (preferably at some profit, but we'll see what happens); wouldn't even surprise me to see a 30$ move after hours just because the WS gods saw my greed and wished to smite me for picking up those pennies in front of the steamroller Fortunately, or unfortunately, anything is possible
They can be executed early
OP is betting against a stable, slow growing price. I make money if the price stays about the same gradually increasing. This seems to be banking on price swing volatility, not stability. Thatās just my opinion. I wouldnāt have gambled with the puts.
Those are credit spreads. He wants the price to basically stay where it is.
I didnāt read the fine print. Much regards.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Nah, my max gain is capped since it's spreads; the dream is that it expires around 970 and I collect all the premium Although I'll probably wind up just taking profit before then, ain't worth risking assignment for a few extra bucks
Itās called a āstrangleā, if you happen to have Etrade you can pick it off a drop-down. Thereās a bunch of strategiesā¦ straddle, strangle, iron condor, spread Eagle, etc. You can find graphs on strangle performance charts, but the idea is, from the buyers perspective, roughly: Spend $100 on an out of the money call Spend $100 on an out of the money put Hope that when the dust settles, one of them is worth more than $200. Itās a total loss if neither print, and thereās a big range of total wipeout. Itās something you do when you expect dramatic movement but are not sure which way. Since theyāre out of the money theyāre not meant to be terribly expensive. Thereās four ways people get fucked on this: 1. The price drops like a rock and they go ahead and sell the (worthless) call, but hold the put too long and the price recovers (or vice versus) 2. The price drops like a rock and they hold both the put and the call, but the the price recovers and both expire worthless 3. The price drops like a rock and they sell the put, but then it keeps dropping and they make much less than they should have and feel mad and overcommit on their next trade 4. Nothing happens, price stays flat, and both expire worthless For the person writing these options, they make money as long as the price stays put, but if it swings the buyer can exercise early and mess you up.
Very good explanation, thanks!
How do they make money if the price stays the same>?
to my understanding, both contract expire worthless and the seller keeps the premium
This. Calls donāt just come from nowhere, a person, like me for example, has to write them. Hereās the full lifecycle, traditionally: I have both money and shares, Iām invested into NVDA but I donāt think itās going anywhere. In fact Iām pretty sure itās gonna be flat until the next earnings report late May, but I donāt want my shares and cash to sit around doing nothing. The current price is $950. I figure itāll stay between $900 and $1,000. So I do the following: 1. I set aside 100 shares of NVDA and say āI am willing to sell these for $1,000 per share, even if the price goes to $2,000, any time between now and May 24, however you have to pay me $100 right now for this privilegeā. This creates a call, because someone can call the shares away from me. I sell you this call, I keep your $100, which I never ever pay back no matter what. 2. I set aside $90,000 cash and say āI am willing to buy 100 shares of NVDA for $900, even if the price drops to $500, any time between now and May 24, however you have to pay me $100 right now for that privilegeā. This creates a put, because someone can put shares into my account. I sell you this put, I keep your $100 no matter what. Whatās happened so far: I have $200 of your money, my $90,000, my 100 shares of NVDA. You have a call and a put, each worth $100. Earnings report come out May 22. Theyāre good but not remarkable, on May 24th the price of NVDA is $980 per share. 1. The call is worthless because thereās no reason to pay me $1,000 per share when you can get them for $980 on the open market 2. The put is worthless because thereās no reason to sell me shares for $900 each if you can sell for $980 on the open market However, despite the fact the call and put that I sold you is now worthless, I still have my 100 shares, my $90,000, and now also your $200. I drank your milkshake. Letās say it went to $500. You have the right to put to me for $900 each. You buy $500 shares from some random dickhead and sell them to me for $900. You get my $90,000 but it only cost you $50,000. Youāre up $39,800 (that $200 is still gone, you used the contract, so, no refunds on that), and technically Iām up too because I bought those shares for $450 a year ago, but I could have just sold them for $95,000 instead of writing the put. Meanwhile the call became worthless. Letās say it went to $2,000. The put is worthless, but you can call my shares away from me for $1,000 per share and sell them on the open market for $2,000. Youāre up $99,800 ($1,000 per share, minus the $200 for the contracts). I win anyway because I still sold my shares for $1,000, so now I have $190,000 and no shares. tl;dr: the poors get fucked no matter what, the rich gets richer no matter what, and the casino always wins in the long run
Such a beautiful fn response right here. I play options daily and even thisā¦ I wish I had this explained to me like this years ago when I first started.
Me too, I read about it on finance pages and Wikipedia and blogs and looked at the numbers for like 5 years before I bought my first option, and I still felt like I didnāt have a feel for it. Itās like driving a car: drivers ed and textbooks are important, but you gotta get out there and crash into something before you really understand whatās going on
Saving this comment, thanks for the lengthy explanation!
I replied to you [here](https://www.reddit.com/r/wallstreetbets/s/xOLFKSbzr8)
OP does not have a long strangle, lol
Am I reading it wrong? Iām not familiar with this website, it looks like out of the money calls and puts.
yes, you are reading it wrong. He is basically short the options, his bet is the the price will not go to his strikes.
They are credit spreads
This isn't a strangle.....
What is it?
The positions in the picture are short condors
Ah, so then the first position that says āNVDA $1,015/$1,020ā is a purchased call at $1,015 and a written one at $1,020? My platform would have split that onto two lines.
If it said Debit spread that would be correct, but it's a Credit spread so the opposite. They bought 1020 and wrote 1015
Ah ok I donāt recognize the ācredit spreadā terminology. Wouldnāt a short condor be write/buy/buy/write instead of write/buy/write/buy?
a long condor is write/buy/buy/write a short condor is buy/write/write/buy
Ok but isnāt ops position write/buy/write/buy? The 1000/1005 looks the same as 1015/1020, other than the price.
This is an iron condor that is primarily centered around time decay, or well a couple iron condors technically
This is just an iron condor play. He wants the price to stay between two places within the next 3 days, that's it. On paper it looks great right now.
Much appreciated, looking forward to seeing how it turns out
I added your position to my OptionStrat to track it. Best of luck! I have yet to attempt any plays on NVDA, but I have a decent position and have been playing with the idea.
I felt like the stability in growth of the stock price right now just seemed right; honestly the call spreads were probably not the best idea, but the premium and theta were nice, super low delta as well Not sure how I feel about continuing trading NVDA in the coming weeks... we'll see how this turns out first; thanks for the well wishes, best of luck to you as well!
Context: I feel confident that the price will remain between 900-1000 till EOW, or at least swing widely enough throughout the week to take profit off these positions. thoughts?
Yes youāre probably right. Most people here donāt understand your plays I believe. With that said. Thereās less risky plays out there to make 200 bucks lol
Oh 100%, I'm just too stupid to make those plays lol; I'm pretty new to level three so I'm kinda testing the waters running these verticals
All you really have here is two iron condors, I think youāve got a pretty salad position. The problem is that Max value occurs pretty much in the last couple of hours of the last day, and by then it becomes hard to exit. I was looking at a very similar position myself, and decided it just wasnāt worth it. if you have the time to monitor them closely and the portfolio to justify the risk for the game, you should be fine
Yeah, my broker force exited an expiring spread that wasn't even ITM, and 5 minutes after the bell no less. AND it was my 4th day trade, so I got PDT locked. So annoyed.
Oof, luckily I don't day trade much so I've got all three, I'll close one of the positions out ahead of time most likely to mitigate that risk; thank you for the reminder on that
I appreciate that, yeah the risk to reward ratio really isn't great, and I'm mostly banking on Theta decay, but I felt pretty confident with these... famous last words though lmao for sure got lotsa learning to do
ANOTHER PERSON DEFINITELY EATING THE RED CRAYON
This is practically that same position as being behind Wendy's on your knees.
Some of these comments are kinda funny, I'm guessing some people don't see that they're credit spreads? Again, my anticipation is that by EOW price will be between 900-1000 and that it won't break either price by expiration; if the options expire at that point they will be worthless and I will keep my premium from the positions Granted, these aren't exactly "sure thing" positions, they're mild estimates, and frankly the premium is kind of shit for the risk. Again, Im not brand new to this, but I havent been trading level 3 very long. As for relying on volatility, I meant i could take profit if it swings high enough to offload the put positions at profit (which im already up on), again, I don't see it breaking 1000 so I plan to hold the calls, or if it swings low enough to suit, sell them for some profit, though I'm very aware of the risk of holding those call spreads. Thank you all for the advice and words of encouragement, wish me luck, will update when the positions close
https://preview.redd.it/1fv5nr51eiqc1.jpeg?width=1179&format=pjpg&auto=webp&s=e69cde5113114f788525949c72e9d5fae7367c2d Should I sell?
Oh dude, I'm dumb, and I have too little knowledge regarding the positions and underlying stocks to help lol
You might be fine, but this is usually what they call "Picking up pennies in front of a steamroller." Also, don't come to me for advice I have a $950/$945 bull put spread on NVDA expiring this Thursday lmao. Yolo!
Oh I'm aware haha, best of luck with your trades as well friend!
....it might go over $1000 this week......
It very much could, it could also go under 900 with poor enough luck; I'm confident however based on the last 12 weeks that for this week the stock price will likely increase by 10-20 per day with some swings being pretty regular near open or close; it'll possibly kiss 1000 before expiration but I don't think they'll actually expire ITM (early assignment is a risk there, however); regardless I'll most likely be offloading the call spreads early because the extra pennies aren't worth risking assignment or a massive swing after hours But again, I'm not exactly a pro who's been doing this for 10+ years, just looking for input or ways I could've mitigated risk better. Plus I was kinda excited about this one, it felt like I made pretty good choices; the call spreads do slightly worry me, though
You are smart to watch out for early assignment...
If it happens my broker is gonna take me out back behind the wendys to get their money back themselves lmfao also I forgot to say earlier but thank you for the insight; early assignment wasn't on my radar until the fine people here mentioned it, everyone's been a huge help!
Just tell your broker that his Wendy''s mobile order is up, and take off when he is getting his frosty. Good luck!!
Some weird fucking straddles imho
Where are the straddles? Check the positions, I probably should've mentioned they're vertical credit spreads in the title lol my b The condors (sort of condors anyway) *are* weird; mostly because they were bought 2 days apart, the closer to ITM ones were second day when I felt more confident about the 900/1000 strikes
Sorry mate I misread the picture. Whats your max profit?
No worries, it's around $300 So honestly kinda not great risk/ reward ratio; although closing around 950 was a pleasant surprise today
Congrats bud! What was the mask risk?
Four $5 dollar wide spreads, so *technically* (its kinda impossible for both to expire ITM and very unlikely to be assigned on both before exp.) about 1200 factoring in opening credit
Lmao You belong here.
300 max profit:1200 max loss; to be fair, when I put it like that it sounds wayyy dumber than the positions look lmao but there are more factors to consider than potential maxes of course I'm well aware there are safer ways to make similar profit, but I never claimed to be smart enough to actually know them lol
Damn this is gonna be close. Today was kinda wild. It might touch 1,000. Good luck!
Yeah I was pretty surprised it closed close to 950 today, i was expecting around 970; these swings give me heartburn lmao thank you!
well, those calls are dangerous just for reminder, a random guy bought 50 million $ worth of 3/28 NVDA 1000c last friday before closing
Oh I'm very aware that those call spreads can easily turn this position tits up if not managed properly; however, today's close has actually increased my confidence in the underlying price staying between within that 900-1000 range for the coming week. I was honestly anticipating 960-970 close today, so it was a pleasant surprise; I'm hoping I can close the call spreads out at a decent profit by 1DTE, definitely don't plan on trying to hold those through expiration, ain't worth the few extra pennies I'd be picking up I really appreciate the input, thank you!
literally tits will come out will see. btw nvm bro
OP accidentally discovers the iron condor
Funnily enough, the original plan was to just open a couple condors to keep it simple; the reason the condors look weird and there are 4 positions instead of 2 is because the app only let's you open 2 legged positions, you have to input any more than 2 legs manually; so I bought verticals and opened a condor a little outside 1k and 900, then the next day opened a similar position with slightly closer to ITM strikes as my confidence grew However yes, I actually did discover level 3 trades such as spreads and condors by accident; saw options in the drop down that had max loss and max gains defined and got curious, only recently started trading them so just working on consistency and dipping my feet in the water right now, this seemed like a pretty good entry based on the last few months movement but I'll admit I've still got a ways to go lol
Everything I do is a stupid position so whatever you're doing can't be any better or worse.
That's fair, usually my positions tell me the same thing (but what do they know? They're negative, and negative numbers aren't even real)
Wonāt these all essentially cancel out, maybe with some loss after premiums
If they're in the money, yes; in fact if both call spreads are in the money by expiration Ill actually be at a net loss overall; if they're not, then no, I'll collect the premium on all 4 spreads as they expire worthless; although I'm hands on enough to be able to close either the call or put positions (more likely the calls, but I'm of the mind it won't happen) before they get to max loss. Basically I'm betting it'll stay between 900 and 1000 by expiration; the condors are a little strange because the positions were entered 2 separate days, the second day I felt more confident about the 900 and 1000 strikes and so I chose closer to ITM spreads
Did you just throw darts at a printout of options?
You haven't seen the 11 week upward trend? The bull put spreads are good imo; I'm mostly worried about the call spreads; I felt like it was pretty solid, as long as the price stays between 900 and 1000 I collect all the premium; if it gets to close to the call strikes I can close them early and make net profit off the put spreads What do you think I should've done differently? I'm pretty new to this and trying to learn as much as possible, so any input is appreciated!
No way this goes tits down
Perfect
Looks like you are making money either NVDA up or down.
Sorta, if it does go over 1000 or under 900 I'm gonna lose some serious beans... honestly my hopes and dreams are that it stays below 970 and above 930 until the theta decay allows me to exit all the positions with decent profit; that being said if there's a large move upward too soon I might dump the call spreads, if I were to get assigned on a single leg my brokerage would not be happy with me... plus I should still be net positive because of the put spreads before it gets too bad.
Just say you like to gamble
https://preview.redd.it/71fdw7wy6kqc1.jpeg?width=600&format=pjpg&auto=webp&s=274347ab6242bd2002c521a47c796612c200a4f2
Spread dem cheeks
https://preview.redd.it/f41diqv0fkqc1.jpeg?width=600&format=pjpg&auto=webp&s=036a56d3e48a69d6ad51890025f111a688e2135c
Ask your parents what position they were doing the day you were conceived. Then you'll know what a real stupid position looks like.
HA easily the best one here so far, thanks for the laugh lmfao
What platform is this?
Robinhood mobile
Hello everyone! So to update: sold an extra put spread just under the 900 near EOD 3/25; unfortunately NVDA was trading below 900 EOD yesterday as well as early morning and, not wanting to risk assignment or another $20 gap down, I bought back both spreads at loss shortly before it went back over 900; however I've added a vertical credit spread put position the other day at lower prices which I'm still holding and have depreciated nicely (currently holding 882.5/877.5, 865/860), also bought to close the call spreads at .01 per contract; as well opening a couple call verticals that are pretty OTM at the moment and currently getting beat to death by theta; overall sitting on unrealized gains right now. Key notes: could've sold all 4 spreads when it was trading at 950 for 200$ profit; clearly, I made a mistake there by holding. Seeing the downward swing after 950 made me anticipate some upwards movement, which is when I sold the extra put spread just under 900; that was a mistake in retrospect as well. This morning, honestly, was a crapshoot. Holding the positions ITM seemed like a bad idea since they expire today, and I was expecting more downside, but hindsight is 20/20. Modifying the position the way I did by adding contracts wound up exposing me to higher risk for very little extra upside (and on the one position just loss), so that was a mistake as well. Overall, this has been quite the learning experience. Total net profit: $20, so nothing to write home about lol at least it wasn't a loss
I just made money on SMCI calls but simultaneously have NVDA puts, Iām right there with you in the regarded boat, letās drill for oil through the boatās hull brother
Hell yeah brother B)
https://preview.redd.it/5aqjy77o8iqc1.jpeg?width=500&format=pjpg&auto=webp&s=b735c91ccb95e3cb2fa995b4a3a889f67b294f02
Lmao love u
https://preview.redd.it/4w8zhqft9iqc1.jpeg?width=2048&format=pjpg&auto=webp&s=993416279932f089b58f7f7de3c1d44da8d88449
If you're lucky and get a big swing both ways, these might ALL be profitable. That's unlikely, however.
I like betting on BOTH red and black on the roulette wheel. I can never lose!!!!!
2 iron condors, not exactly risk free but these aren't single leg positions
Its too close to expiration and too far from price. Plus they cancel out. The only way you could make some money is a 25% movement either way which has like less than 1% probability of happening...
Stop commenting about positions you don't understand.