The Official Options Thread

[lane121]

Big OTM puts order block

[Blazed]

That was a fast drop. No calls @ 5450 as it blew right though it.

Waiting on reclaim then retest.

Or 5416

Missed put entry.

[ajlaxmn]

Originally Posted by Blazed

That was a fast drop. No calls @ 5450 as it blew right though it.

Waiting n reclaim then retest.

Missed put entry.

I looked away for a five seconds, BOOM, right past 5450.

[ajlaxmn]

Originally Posted by Blazed

That was a fast drop. No calls @ 5450 as it blew right though it.

Waiting on reclaim then retest.

Or 5416

Missed put entry.

Was there anything you considered for that Put Entry? the 1m reject at 10:07 was the only entry I considered, however buying volume was low, don't recall the trend at that time, couldn't remember if it was green or red. Wasn't any other real big indicator. Unless I missed one.

[Blazed]

Originally Posted by Blazed

After NVDA split, "omg it didn't pull back I'm missing the trade" lol.

Still waiting on my entry for NVDA equity. If I miss it, I miss it. But we can definitely get to 100/103 area.

Originally Posted by Blazed

NVDA: no rush on equity.

Originally Posted by Blazed

NVDA should go back and touch 100-105 area soon (obviously not today). I will add full position there and hedge my position.

Added full position & hedged.

Remember when NVDA was 140 lol?

NVDA should go back and touch 100-105 area✅- filled 2k shares @ my area.

This is why you don't FOMO into trades. Technicals will play out.

[lane121]

Originally Posted by Blazed

Added full position & hedged.

Remember when NVDA was 140 lol?

NVDA should go back and touch 100-105 area✅- filled 2k shares @ my area.

This is why you don't FOMO into trades. Technicals will play out.

Snagged 300 shares @ 105 too based on 21ma, thanks!

[Blazed]

Originally Posted by ajlaxmn

Was there anything you considered for that Put Entry? the 1m reject at 10:07 was the only entry I considered, however buying volume was low, don't recall the trend at that time, couldn't remember if it was green or red. Wasn't any other real big indicator. Unless I missed one.

Drop was too fast and it blew past the level. Didn't even get a break below and retest. So I passed on puts.

Looks like they bounced early, but the next level I had was 5416 (ATR @ 5426 too) but liked 5416 better.

[Blazed]

Originally Posted by lane121

Snagged 300 shares @ 105 too based on 21ma, thanks!

Awesome. See why we wait on levels even when adding equity?

[lane121]

Originally Posted by Blazed

Awesome. See why we wait on levels even when adding equity?

Definitely seeing it lol. No reason to just buy to buy. Always opportunities out there, just gotta be patient!

[lane121]

This was the only thing I saw indicating a potential move lower, but they pumped it up to the ATR resistance first before dumping

[Blazed]

Originally Posted by lane121

This was the only thing I saw indicating a potential move lower, but they pumped it up to the ATR resistance first before dumping

I was watching that too.

Was hoping they would take it down to 5416.

[Blazed]

Originally Posted by lane121

This was the only thing I saw indicating a potential move lower, but they pumped it up to the ATR resistance first before dumping

Hope you caught that and trimmed @ 10pts.

Flow took it down to 5400 then bounced

[Blazed]

Originally Posted by Blazed

Hope you caught that and trimmed @ 10pts.

Flow took it down to 5400 then bounced

2nd trim @ 10 points

Left 2 runners for SPY VWAP @ 543 for full exit

[lane121]

Originally Posted by Blazed

Hope you caught that and trimmed @ 10pts.

Flow took it down to 5400 then bounced

ATR's for the win again lol. I was taking a break for lunch and wasn't at the computer so I missed it, but definitely one I'd take every time. Will probably monitor and watch closely though tomorrow with FOMC.

[Blazed]

Originally Posted by Blazed

2nd trim @ 10 points

Left 2 runners for SPY VWAP @ 543 for full exit

Left 2 runners for SPY VWAP @ 543 for full exit✅- all out.

Gains from this trade $9.3k

Easy stress free trading.







FOMC tomorrow. MSFT & AMD after bell

Was going to play MSFT puts but after the sell off I'll see where MSFT is during power hour.

[Blazed]

Originally Posted by lane121

ATR's for the win again lol. I was taking a break for lunch and wasn't at the computer so I missed it, but definitely one I'd take every time. Will probably monitor and watch closely though tomorrow with FOMC.

Oh ok. That 5400 was a nice 40 point bounce.

Tomorrow should be fun w/ earnings + FOMC.

[lane121]

Blazed,

Originally Posted by Blazed

Added full position & hedged.

Remember when NVDA was 140 lol?

NVDA should go back and touch 100-105 area✅- filled 2k shares @ my area.

This is why you don't FOMO into trades. Technicals will play out.

I was wondering about hedging here. When you are talking about it, do you mean selling covered calls? I haven't done those yet, so I'm not familiar, but have been looking into them (I'm probably never touching covered puts as those carry unlimited risk potential like you said). With covered calls, is the downside essentially that you are locked in to a strike price and that you would potentially be missing out on any gains if the price skyrocketed above that before expiration? But, if it's at a strike price you'd be comfortable selling at any way and they get called away, then it seems like a win.

And, if they go down in price then you keep the premium on a stock you were planning to hold long term anyway. Or if they go down, then you could buy back the calls cheaper, thereby basically reducing your cost basis on the stock from the difference between the premium you sold for and the premium you bought back for? I'm just trying to wrap my head around it, because it seems like a win-win so I feel like I must be missing something lol. Though, I know you can't sell it otherwise until that expiration expires.

Thank you!

[Blazed]

Right, NVDA will be a long term hold - years.

Originally Posted by lane121

Blazed,

I was wondering about hedging here. When you are talking about it, do you mean selling covered calls? I haven't done those yet, so I'm not familiar, but have been looking into them (I'm probably never touching covered puts as those carry unlimited risk potential like you said). With covered calls, is the downside essentially that you are locked in to a strike price and that you would potentially be missing out on any gains if the price skyrocketed above that before expiration? But, if it's at a strike price you'd be comfortable selling at any way and they get called away, then it seems like a win.

Yeah, don't do covered puts. I do that because I'm willing to buy more equity if I have to.

Another way you can hedge, is sell covered calls and buy puts at ATH's

Example: You bought NVDA @ 105 and it goes up to all time highs @ 180. Sell some 180 or 200 calls. Let the calls expire or buy back for less (keep that premium) and sell the puts when they increase in price (keep that premium).

And, if they go down in price then you keep the premium on a stock you were planning to hold long term anyway. Or if they go down, then you could buy back the calls cheaper, thereby basically reducing your cost basis on the stock from the difference between the premium you sold for and the premium you bought back for? I'm just trying to wrap my head around it, because it seems like a win-win so I feel like I must be missing something lol. Though, I know you can't sell it otherwise until that expiration expires.

Thank you!

You're not missing anything. It is a win - win.

Correct. I do this when shares I have hit record highs/lows. Goal here is to get the cost of the stock down as close to free as possible.

When I sell covered calls I always go a year out (doesn't mean you have to hold them that long), but I intend on them expiring or going almost worthless so I can buy them back.

If you look back though the thread I did that with BABA & TSLA and a few others. Sold some covered calls a year out for about $900/call and bought them back for around $300/call - kept $600 profit per call.

The equity I still have in BABA, my avg is around $43/share now.

That said I don't do the weekly or monthly expirations because anything can happen news/data wise and go against my position. So I always go at least a year or sometimes 2 years out if they have strikes available.

I do that for time and to collect a higher premium since it's a long term hold. And just like when you buy SPY/SPX options, you want to sell covered calls @ key areas/levels too.

[Blazed]

Originally Posted by Blazed

FOMC tomorrow. MSFT & AMD after bell

Was going to play MSFT puts but after the sell off I'll see where MSFT is during power hour.

Had MSFT on target, not anymore.

No edge so not playing earnings.

Was going to play puts before the sell off this morning.

[Blazed]

Originally Posted by Blazed

Had MSFT on target, not anymore.

No edge so not playing earnings.

Was going to play puts before the sell off this morning.

Lol

Down 30 points. Oh well.

[ajlaxmn]

Sorry for disappearing gents, had to get stuff done towards end of the day.

7/30/24 – Missed an entry at 10:07 when SPX reject ATR along with SPY rejecting the same ATR/Upper BB. The play could have been since the market dropped on data, was looking for a bounce of previous close but never hit, when it rejected the ATR that could have been the entry, however SPY volume was still showing buyers as the first SPY candle closed Green and was higher than the next SPY candle (red). Wasn’t looking at Puts as the SPY candles were closing red and much lower than the opening green candle. SPX was pushing down on low volume so wasn’t looking at Puts. Didn’t catch the major drop down later in the morning as there was no entry point (no break below and retest). Waited for 5400 as it was near ATR and market had moved passed implied bottom so likelihood of bounce was high. Took 3 contracts, cut one at middle BB on SPX, cut second two at ATR (should have cut one and left runner). Reason I cut the second was becaue of SPY volume and it appeared SPX might be losing momentum. $245 profit.

[lane121]

MSFT watching for a potential 417.50 reject

*Looks like it jumped above this area premarket so no longer looking for a reject here*

[Blazed]

FOMC today so no levels.

You know what to do on FOMC day.

SPX 5500/5492 is all I'm watching pre FOMC.

[ajlaxmn]

FOMC today. Will wait 30 minutes and if it chops/no setup, I'll wait until FOMC, IF I TRADE FOMC IT WILL BE ONE CONTRACT, PREPARED TO LOSE IT ALL (TRADING SPY). Need to trade this day for real at some point.

Top 5550, Key Level 5500, Bottom 5450, Gap 5489.46

Plus ATR's.

SPY Reject 550.44 - 551
SPY Bounce - Don't really have a good bounce area I like. 542 would be the only one, but not using that as a trade entry point.

[Blazed]

Originally Posted by Blazed

FOMC today so no levels.

You know what to do on FOMC day.

SPX 5500/5492 is all I'm watching pre FOMC.

SPX 5500✅

Took a light entry @ 5500. Trimmed @ 5512.

Left 1 runner for possible run up into FOMC.

Runner stop set @ 5500

Will wait for FOMC until next trade.