options
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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
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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
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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
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February Wrap-Up
In February, I focused on personal goals, seeing progress in interactions with family and making new friends. My business, Index Coffee and Books, performed well financially. My investments saw a 29.03% increase, and my strategies in selling options were mostly successful. I also read several books, ran 200 miles, and improved my chess rating. Continue reading
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January Accountability
This is going to be my monthly post on how I am progressing toward achieving my goals. I will list the goals for each category and then give a brief update on how things went last month. Personal 2 Goals 1. Give the world all the love, respect, and kindness I have. January was a Continue reading
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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
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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
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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
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3 Ways to Trade Realty Income (NYSE – O)
The post discusses three strategies for trading NYSE – O stock: buying the stock and collecting dividends, selling an out-of-money put at a comfortable strike price, and selling a short put spread to mitigate downside risk. Each strategy relates to different investor attitudes towards risk and return expectations. It emphasizes the importance of aligning trading… Continue reading
Power To The Elbow 