Time to learn more...options (Page 5 of 5)
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Originally Posted By Procat: SPCX cash secured puts are starting to look attractive. Looking at the August expiration there are several strikes paying good premiums that would allow for a basis below IPO price if assigned. Beyond July though I’m hesitant…. They’re not super profitable so the numbers on the first earnings call will be unimpressive. But Elon has a habit of announcing surprises on calls among other things. I can easily see a big jump either way in the first earnings call, too early to be more sure than a coil flip though. Also the premiums have decreased since last week. They’re still high, but not the eye watering premiums of just last week. |
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Closed more space x calls I had sold just a couple days ago at a profit of $410 each. Closed some puts at $1 profit (ie. 0.01 per share) that I mistakenly sold because I finger farted when selling and selected the wrong account. I've been selling more aggressive puts and calls (deltas in the 0.4-0.5 range) and closing them once they show a modest profit. Previously I was selling much more conservative strikes (0.1 and under) and usually waiting for them to expire. My most expensive 100 shares cost about $179. I've collected $21 premiums per share on them to get my effective basis down to $158. Space X makes the options a lot easier for me because I'm a long-term believer in them. I haven't had any puts I've sold executed, but if/when that happens I won't be too broken up about it. I think that space x will remain like it is (volatile in the mid-$100 range) until the first earnings call (late july or early august). Not sure what that first earnings call will do for the price. |
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The September $100 $SPCX cash secured put looks tempting. Closed today with a $4.60 bid. Made myself a note to check it again tomorrow during market hours. Been going back and reading the various SpaceX IPO threads start to finish the past couple days. It’s been eye opening to say the least. I always felt like we had a good discourse on this site talking investments but some of those threads got nasty. ETA sold (1) for $4.60. Placed limit order to sell another at $5. ETA2 $5 order filled. |
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Originally Posted By grendelbane: If you think arfcom is nasty take a look at Seeking Alpha. That place is really nasty. Stocktwits is another one. Basically 4chan for stocks. It’s still a decent resource for breaking news if you can sort through all the trash talking. Sold another 9/18 SPCX $100 cash secured put today for $7. |
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I now have short calls expiring in August against all of my space x stock at prices ranging from $145 to $180. Closed a short put last week I had at $135 at a small loss because I didn't want the shares. Turned out to be the right choice! I'm hesitant to sell any more puts because I can easily imagine it dropping more. But I'm still buying 10-20 shares on down days. I don't even have a guess how the earnings call will go or what the reaction will be. Not much different than other overvalued stocks in that regard. |
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Originally Posted By Procat: I’m fine with assignment if it means a basis under $100, I’ll just sell calls and wheel it. But that's why the options on space x are easy for me - I'm OK with holding the shares long term so being a bit underwater on some shares for a while isn't as big of a deal as it is with most of the other stocks I've traded options on. |
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@Morgan321 What is the strike and expiration date? I’ve had this happen too. It’s usually when the stock moves in such a way that interest in the contract falls off a cliff. Generally because it’s very close to expiration and / or very far out of the money. Without active interest someone’s old limit order or moonshot order is likely setting the price. |
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Originally Posted By Procat: @Morgan321 What is the strike and expiration date? I’ve had this happen too. It’s usually when the stock moves in such a way that interest in the contract falls off a cliff. Generally because it’s very close to expiration and / or very far out of the money. Without active interest someone’s old limit order or moonshot order is likely setting the price. Not a big deal and this is why I prefer selling calls - I profit if they execute and I profit if they don't. |
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These 8-10% swings in a single day on space x are making it seem easy to profit. I'm selling moderately aggressive calls and ultra-conservative puts any day it swings more than 5-7%. Closing them when it swings the other way. I'm making a couple hundred on upswing days and $1-1.5k on the downswing days. It's very low stress when your calls are profitable if executed and the puts are ultra conservative fire-sale strikes for something you already know you will hold for the long term. |
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I have a single $37 short call on ibit expiring today. ibit is $43 this morning and I'm letting it expire. Thankfully I had backed off selling ibit calls a couple months ago because the premiums on bitcoin fell through the floor and it just wasn't worth the effort. I timed the space x local bottom very well around 2 weeks ago and sold a lot of calls - they are all up 50-75% since then and I'm pondering when to close them since they are 1-3 months from expiring. |
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@Morgan321 What’s going on with crypto? Did they make some progress with the clarity act? I saw that Brian Armstrong and Vlad Tenev were at the White House a few days ago. My $BMNR (ETH treasury co) has been on a wild ride this week and $HOOD was up around 12% earlier this morning. Had a bunch of $HOOD $85 and $100 CSPs for 9/11 that I closed out on the pump since they lost a ton of value. If it reverses later today I probably just resell them all and pocket the spread. |
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Originally Posted By Morgan321: Nobody knows. If they say they do they're lying. You need to wait a couple days for people to come up with a rational explanation for such a rapid change. In a couple of days twice as many irrational explanations will be produced for every rational explanation. |
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Originally Posted By Morgan321: I have a single $37 short call on ibit expiring today. I only have one call outstanding - $42 expiring next month. Bit has bit me on three calls now. Still in the green on bitcoin options, but not enough to be worth the effort. I'm out of bitcoin options until the premiums go back up, they're paltry these days. |
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$MRVL has had awesome premiums since Jensen Huang said they’d be the next $1T company. At the beginning of the summer I sold some $250 July puts for $10 when the stock was around $300. Even though it pulled back I’ve been able to roll them out a month and down $10 in strike twice for a credit around $500 per contract each time. Currently at $230 9/25. Sold some $200 9/11 puts today for $520 to add to the position. They have earnings next week and I suspect all the contracts will drop to near worthlessness unless they poop the bed. ………. Losing 300 shares of ZETA tonight to $22.50 covered calls. There’s a lot of buzz about this company but I don’t have enough conviction to chase it. |
Good video on the potential of the wheel strategy. What I Made From OPTIONS in 2026... |
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Thanks to Since both seem to be in a big run-up I'm hesitant to sell more calls (I prefer to keep the space x shares and the ibit premiums have tanked compared to a year ago). I've been considering "buy write" on space x since I should've stocked up more when it was sub-IPO price. I'm a long-term believer in space x. In rough numbers, space x is $155 today and you can sell a $145 call two months out for around $20. So if it executed you make about $1k on your $15.5k in two months - over 6% profit which is more than 35% yield. If space x drops again then the net cost of the shares is about $135 (the IPO price) which I am happy to hold long-term. |