[traderpatels]

Happy New Year Teddi! Please write up the article you promised. Meanwhile I did something differently and would like your opinion on it. I am simplifying here to save you time.

For SQ and XRT, I closed for a loss the current put spread on 12/23 on the expiry day. Then I opened a fewer contracts put spread by rolling out to 1/14/22 expiry and lowering the short strike. Then I added call spread for same expiry and same short strike, thus creating an Iron Condor. Since short strike is the same, I am guaranteed that one side expires worthless and I can keep the premium.

Do you see a problem with this idea?
Thanks,
Sachin

[traderpatels]

Teddi,

Awesome article on the XRT repair. I have a simple question. How did you decide to sell more puts on Dec 1 and 3 and then how did you decide to BTC on 8th? What technical indicators do you use? 10-20-30 SMA were inversely stacked(on 60 minutes timeframe), indicating downward pressure.

XRT could easily have fallen more after 3rd or keep going up after 8th, but you had awesome sell and BTC.

Thanks in advance,
Sachin

[traderpatels]

Hi Tom,

Thanks for sharing. I have started selling iron condors on SPX recently, which is the same idea extended to call side also. Took some heat on call side last month though.
Your timing starting in February is interesting. How did you deal with the sharp selloff in March? How do you mange the risk?

TIA,
Sachin

[traderpatels]

Thanks Teddi. I am open to buying and holding stocks for a few weeks to few months. I like selling puts on large cap companies that pay dividends, so I get paid to wait. So holding for a while is not a problem, and I can always generate some income by selling calls, if not way below cost.
Deciding at what price to buy a stock is tricky though. How do you determine that price? Analyst estimates, support levels on weekly chart? Thanks in advance.

[traderpatels]

That’s a good way to structure. But the most you make is the premium on puts sold!

[traderpatels]

This reply has been marked as private.

[traderpatels]

Hi Teddi,

It’s an awsome article!! Thank you. I am going to read it a few more times.

Sachin

[traderpatels]

Thank you all for your response. Makes sense!

[traderpatels]

After the losses, I have 26K in this account. 130k in another account that has necessary options trading privileges (except naked calls). I like to commit 3-5k per trade at opening and go up to 10k for repairs.
Thanks in advance.

[traderpatels]

Thanks Teddi. For now, I am not going to chase my losses and possibly make it worse. I will try the strategies on less volatile stocks and recoup losses.

[traderpatels]

Thanks for getting back to me. I do NOT have to recover all losses from AMZN. TSLA moved up since your article came out, but I can adjust strikes and get in.

If you have time to answer, if these losses were in a less volatile stock, what would you do?

TiA,

p.s. hope your grandson is doing OK. Best wishes.

[traderpatels]

Thank you for that question Danoco and Thank you very much for the article Teddi. It’s pure gold :) I have read that 2-3 times and has been an eye opener. Learning rescue strategies is like having parachute! It allows you to jump out of a plane. (A venture I would never consider! I get my adrenaline fix trading options..LOL )

WBA earnings today have given me a chance to put this article in practice.

Sonny

[traderpatels]

Hi Hanksterr,

Thank you for sharing your strategy. Your strategy worked great for that week as AAPL closed below 155(1/11/19 close 152.29) and your short calls expired OTM.

What do you do when AAPL is trading above your short call strike?
Your short call will be called at 155…so you get 5.4+155=160.4.
I am guessing you will exercise your long LEAP at 150.. so you pay 24+150=174.
You end up with loss of 13.6. So you can’t be doing that.
Are you rolling up and out as soon as the calls are ITM? Can you please elaborate on your strategy?
Thanks in advance.
-Sonny

[traderpatels]

Thank you Tom for taking the time to share your experience. Kudos to the clarity on your goals and congratulations on your results.

Teddi, Thank you as always for sharing your experience and more details.

[traderpatels]

Tom,

Looking forward to your input.

Nitin,

That certainly sounds great and be able to trade for years is the objective. Currently I am trading with 1 or 2 contracts 2-3 times every session to get the experience. Current goal is to stay in the “game” and lose only money I make selling puts in other securities, (or more that I can afford to lose). Immediate goal is to get the emotions out of the trades. Not getting excited when it works and vice versa :)

Thanks for your input.
Sonny

[traderpatels]

Hi again Tom,

I agree! She makes SPY trading (and the rest) look really easy. I will like to get there, but sooner than in a 30 years :) Hopefully by end of February ;)

I checked the Time and Sales both in Fidelity and IB. Interestingly data is not same in both. Fidelity ATP data is consistent with your numbers.

Please share your experience with SPY trading and lessons learned while we wait. In fact, I will like to hear from anybody who wants to share their SPY put trading lessons.

Thanks,
Sonny

[traderpatels]

Dear Tom,

Thank you for your input and the pointers. I like your idea, but not sure about the capital part. If I do CPS as in your example, I commit $350/contract, but I do need to keep $9200 available per contract if assigned, correct? Or would you roll down or take a loss of $350/contract? I do not have a plan on what % of my capital should I allocate for credit spreads and which to keep on side. Since most stocks move up and down together, if I do multiple CPS[on various stocks], all of them might be assigned at the same time. Hope I am making sense.

Looking forward to Teddi’s opinion on original question.

Sonny

[traderpatels]

Thank you Teddi for your response. My apologies for not paying attention to that detail. Looking at the world my way only gets in the way sometimes :)

T moved up 24 cents between your purchase of shares and selling calls. So option part is basically you taking a chance to see if you are not exercised out today. If not exercised, you will make the dividend also.

Thanks again.

Sonny

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