Trade Ideas
-
How to Roll Options: Reduce Risk & Maximize Profits
Rolling options is a strategy allowing traders to extend their position’s expiration. It involves closing the current contract and opening a new one, adjusting the strike price if necessary. This technique can help collect additional premiums, reduce risk, and minimize losses. Timing and market conditions are crucial for effectiveness. Continue reading
-
Mitigating Risks When Trading 0DTE Puts on SPY
Selling out-of-the-money (OTM) zero days to expiration (0DTE) puts on SPY can be profitable but carries significant risks, especially due to market volatility. Key strategies for risk mitigation include selecting appropriate strike prices using delta, implementing credit spreads, and managing liquidity effectively to avoid margin calls and potential losses. Continue reading
-
Advantages and Risks of 0DTE SPY Put Selling
Selling 0DTE SPY put options can yield profits through rapid time decay, frequent trading opportunities, and high success probabilities. However, risks include large losses in volatile markets and emotional trading demands. Risk management strategies, like using spreads or setting stop-losses, are crucial. Alternative strategies also exist for varying risk levels. Continue reading
-
Will RILY Be Delisted? Analyzing the Risks for Investors
B. Riley Financial faces potential delisting from NASDAQ due to failing to file its second quarter 10-Q financial statements. Investors are concerned about compliance with NASDAQ Listing Rule 5250(c)(1). Although RILY has 60 days to submit a compliance plan, delays in asset valuations raise questions about timely filings and the risk of delisting stands at… Continue reading
-
Will RILY Stock Go to Zero? Analyzing Risks
The author discusses their bullish position on RILY, selling fully funded puts while acknowledging the company’s significant challenges, including missed financial filings, looming debt maturities, and potential bankruptcy. RILY’s stock has sharply declined, and its heavily shorted status raises concerns about its future, with potential delisting or privatization as critical risks. Continue reading
-
What I learned from ON Semiconductor’s 10Q
ON Semiconductor is a profitable multinational company that makes sensors for industrial solutions and the automotive industry. I am interested because of the comparatively high implied volatility percentages in the stock’s out of the money options. I think it is important to read all the available public disclosures for the companies I might invest in. Continue reading
-
Selling Reverse Calendar Spreads
I am assuming you have a working knowledge of what a calendar spread is. If you don’t, that is OK. Here is a great article from Investopedia. Here is a podcast/YouTube that lays out some of the trading strategies around the calendar spread. I sold a reverse calendar spread for Tesla calls that are just Continue reading
-
Forest From The Trees
In my last post I speculated about selling puts in Upstart.(UPST) You can read that here. I concluded that despite all the headwinds and intrinsic problems with the company, the heavy short interest combined with the buyback program would bring enough buyers to the market in the event of a stock price dip that my Continue reading
-
Should I Sell Puts in Upstart?
Upstart (UPST) uses AI to help loan underwriters better assess borrowers and claims to approve more loans at lower rates. Continue reading
-
Crazy Implied Volatility In Prothena
The options market can give hints at what traders are anticipating in the near and long term. One hint I like to look for is options that are expiring soon with high implied volatility. Implied volatility rises when traders are willing to pay a higher than expected price for a particular option contract. If someone Continue reading
Power To The Elbow 