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Teddi,
If he’s going to be posting trades maybe you can suggest an excel template. Or format with common fields date
Strike
Comment or trade notes
Etc.In this manner, everyone who asks will be posting in a standardized manner.
Secondly it’s easier to figure out what’s going on when you explain the solution.
I think we can all learn something from other people trades and your responses.
The problem is people often don’t often capture enough details then it hard to follow what’s going on.
On the management side it takes time to become more confident in your trades in the face of sell-offs. If you can post to me a trade that you had in the 2020 collapse and what you did to repair, I can show you other aspects of handling that type of trade. Remember assignment is rare unless you stay close to expiry dates. When the market collapsed, note in my examples how I closed the short puts, kept the long puts open and then sold puts far out of the money which required far less capital to hold and brought in significant profits that easily covered losses. Post some trades and I can take a look for you.
I agree with Teddi assessment,
It just takes practice and time. I remember selling my first naked put on INTC using, not really know how to manage the trade.To Currently-
I remember going into 2020 collapse perfectly mostly in cash,
And trading the crash all the way down buying on dips and selling at bear tops during the entire crash.
I didn’t use options at all during the crash.I don’t think anyone can trade like Teddi. You sort develop your own style. I think you keep it simple with mastering naked puts, without getting caught into too many rescues.
Or I just take assignments cause I know the stock will go up. (also you need to roll them quickly as soon as they hit the strike, I just don’t have time to watch the stocks like that every second)I did the 45/35 debit spread on Jan. 25 expiration Feb. 19, three contracts. Several times the short leg went to 1k profit to buy it back, so I finally did on Feb. 9. I am still sitting on the long put at $45 with approximately two weeks to go to expiration. Today GME closed at $50.31. down 9.69, so I may make profit yet. My point in posting is not to brag, but to make the point that sometimes you need to go out a month or more in expiration and be patience.
When any stock like GME goes up the way it did, chances are it will fall as fast as it went up. This is called revert to the mean. Another good example is Kodak from last summer– up on rocket fuel, and down as if someone had tied an anvil to it.
Yes.
While in a put credit spread – can I be assigned the stock and left with just the long put?
I found the article on the site that answered my question above…so I’m good.
a question for the more experienced –
If I sell a put on a stock at a price where I want to purchase it and buy a long put to create a credit spread to reduce my net outlay, when would I sell the long put? Is there a ‘GREEK’ that I should be looking at? Is it just before the expiration of the short put? Is there an article in the Teddi library that covers this? Your suggestions are appreciated. thanks.Not sure about the Santa Claus rally. Too many unknowns like the Georgia election and stimulus checks.
I do however think we will have a sell off in January. I think we will see a pullback in the high flying tech stocks. And a rotation from lock down stocks to open up stocks. I think we could see SPX pull back to at least the 50 day and possibly the 100 day. I don’t think it will be quick and sharp but a gradual decline. Maybe $3500 by mid month or the third week of January.