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Message
My First Option Trades
Posted on 7/15/22 at 2:37 pm
Posted on 7/15/22 at 2:37 pm
Today, I made my first ever Options Trades:
A) Bought (1) Call Option on Amazon with a $170 strike price expiring 7/21/2023, cost $414
B) Bought (1) Call Option on SOFI Technologies with a $10 Strike price expiring 12/30/22, cost $44
C) Bought (1) Call Option on SPY with a $462 (up 20%) Strike price expiring 12/30/2022, cost $165
D) Bought (1) Call Option on Devon Energy with a $75 Strike Price expiring 10/21/22, cost $91
D) Sold (1) Put on Apple at $120 expiring 12/16/22 where I collected a premium of $346.
My total spent on all 5 was $368 after collecting the $346 premium from the Apple Sell/Put.
I am obviously Bullish. Any thought on these trades?
A) Bought (1) Call Option on Amazon with a $170 strike price expiring 7/21/2023, cost $414
B) Bought (1) Call Option on SOFI Technologies with a $10 Strike price expiring 12/30/22, cost $44
C) Bought (1) Call Option on SPY with a $462 (up 20%) Strike price expiring 12/30/2022, cost $165
D) Bought (1) Call Option on Devon Energy with a $75 Strike Price expiring 10/21/22, cost $91
D) Sold (1) Put on Apple at $120 expiring 12/16/22 where I collected a premium of $346.
My total spent on all 5 was $368 after collecting the $346 premium from the Apple Sell/Put.
I am obviously Bullish. Any thought on these trades?
This post was edited on 7/15/22 at 6:04 pm
16
Posted on 7/15/22 at 2:44 pm to Skippy1013
I guess I am counter-trading you.
Good luck to you
Good luck to you
Posted on 7/15/22 at 3:26 pm to Skippy1013
too far out of the money on alot of those.. theta is going to kill them IMO.
Posted on 7/15/22 at 3:27 pm to MrSpock
You can make bigger gains on the cheaper way out of the money calls but more expensive calls with strikes closer to the share price give you a better chance of making money and staving off time decay.
The option profit calculator is a good resource to visualize it.
options profit calculator
The option profit calculator is a good resource to visualize it.
options profit calculator
Posted on 7/15/22 at 3:29 pm to Skippy1013
quote:
I am obviously Bullish
Lol obviously. Those strikes are bonkers
Posted on 7/15/22 at 5:35 pm to Skippy1013
quote:
A) Bought (1) Call Option on Amazon with a $170 strike price expiring 10/21/22, cost $414
I would have sold you that
Posted on 7/15/22 at 5:43 pm to Skippy1013
quote:
A) Bought (1) Call Option on Amazon with a $170 strike price expiring 10/21/22, cost $414
Revisit this one. It doesn't look right. You make a typo?
Posted on 7/15/22 at 5:46 pm to Skippy1013
Hoping SOFI gets back to $10-12 range. I loaded up at 5.50
Posted on 7/15/22 at 5:48 pm to Skippy1013
quote:
A) Bought (1) Call Option on Amazon with a $170 strike price expiring 10/21/22, cost $414
Confused on this pricing. One contract is priced at about $25 right now. How'd you pay $414?
Posted on 7/15/22 at 6:04 pm to rintintin
I corrected the Amazon expiration to 7/21/2023
Posted on 7/15/22 at 6:15 pm to Skippy1013
Gotcha.
That's gonna be a tough one with AMZN's IV being so high (81 percentile). You're fighting price and vol with that one. You'll need a significant move to see a decent gain. My suggestion would be, if you're ever in profit take the money and run.
Overall I'm not bullish at all over the next year though and would be hard-pressed to buy calls on anything, but I'm a shitty trader so don't listen to me.
That's gonna be a tough one with AMZN's IV being so high (81 percentile). You're fighting price and vol with that one. You'll need a significant move to see a decent gain. My suggestion would be, if you're ever in profit take the money and run.
Overall I'm not bullish at all over the next year though and would be hard-pressed to buy calls on anything, but I'm a shitty trader so don't listen to me.
Posted on 7/15/22 at 7:05 pm to Skippy1013
Today was a big day, you might be losing your arse on Monday FYI.
Posted on 7/15/22 at 7:31 pm to Skippy1013
Are there any reasons behind these trades or are you blindly throwing darts?
From what I can tell SOFI doesn't even have Dec 22 strikes available. Thats on ToS
From what I can tell SOFI doesn't even have Dec 22 strikes available. Thats on ToS
This post was edited on 7/15/22 at 7:45 pm
Posted on 7/15/22 at 7:41 pm to Skippy1013
quote:
I corrected the Amazon expiration to 7/21/2023
I sold $149 Jan 23 calls at $2
Should have sold this one (covered so not completely bearish) assuming Amazon takes hit in recession
Posted on 7/16/22 at 12:39 am to j1897
quote:
Today was a big day, you might be losing your arse on Monday FYI.
My thoughts as well. Personally wouldn’t ever buy calls on a big up day. Wait for big red day.
Posted on 7/16/22 at 4:15 am to Skippy1013
In general, most options expire worthless.
If you get the direction right, you can make money, but historically about 75% of options contracts expire worthless.
I sell cash secured puts on stocks I would be happen owning at the strike price.
I also sell calls at strikes that I would have sold the underlying stock at that price.
To each his own.
Good luck.
If you get the direction right, you can make money, but historically about 75% of options contracts expire worthless.
I sell cash secured puts on stocks I would be happen owning at the strike price.
I also sell calls at strikes that I would have sold the underlying stock at that price.
To each his own.
Good luck.
Posted on 7/16/22 at 8:00 am to makersmark1
quote:
In general, most options expire worthless.
Not sure why this is relevant. 90+% of options aren't exercised anyway and I doubt the OP is planning to exercise them based on the amounts.
I like your strategy, that's a good low risk income generator.
Question: do you typically have enough cash sitting around to buy if your written options are exercised?
Posted on 7/16/22 at 8:58 am to Skippy1013
quote:
Any thought on these trades?
My opinion.
I rarely buy "standalone" puts or calls. Almost everything I do is in the form of a spread.
I like the Apple trade.
On DVN, if you are bullish, I would be doing a bull put spread. Buy the Oct 21 2022 50 put. Sell the Oct 21 2022 55 put. You are risking $230 to make $270. If DVN is above $55 at expiration you make $270. Below $50 you lose $230. You will receive a credit when you do this trade. Also it has a significantly higher probability of success since DVN is at $52 currently.
On AMZN. If I was doing this trade, which has a long time frame, I would be doing it in the form of a long diagonal spread.
Ditto with SPY.
I am about to go long on SPY but I am waiting on a another drop to the 340 level. When it drops to that level I will buy calls 18 months out then create long diagonal spreads. Not only do I want the value of my SPY long call to increase, I will also be "selling" short calls for income while I wait. Confusing I know.
The Tasty Trade guy on YouTube is really good IMO if you want to learn more.
Posted on 7/16/22 at 8:59 am to Skippy1013
This is how you end up in a van down by the river
Posted on 7/16/22 at 10:34 am to makersmark1
quote:
I sell cash secured puts on stocks I would be happen owning at the strike price.
Do you have to set this up (cash secure part). I gave limit orders to buy bc mostly cash but was thinking if I sold puts would be getting premium
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