The Official Options Thread

[ajlaxmn]

Originally Posted by Blazed

SPX: 4175 top (break above 4180 > 4195 > 4200) / 4100 bottom / 4150 key level (4140.34 gap)



Watching:

SPY 414 reject for puts
SPY bounce 410 for calls

TSLA on watch - Looking weak, still want to see that 120 area for heavy equity add. Earnings on deck.

Work meeting so couldn't spend time checking. Thank you.

[Blazed]

Originally Posted by Blazed

Anyone who likes equity, I will be adding TSLA equity if it can get down to 170ish area (over the next week or so, won't get there today). If things really get bearish I'll fully add TSLA in the 120's

No trades for me today. Another sideways day so the R/R wasn't there for me.

However, I loved seeing that TSLA earnings miss, I added my first TSLA equity add. I'll add more @ $150 then a full add @ $120

I will be adding TSLA equity if it can get down to 170ish✅

[Braswell10]

Originally Posted by Blazed

No trades for me today. Another sideways day so the R/R wasn't there for me.

However, I loved seeing that TSLA earnings miss, I added my first TSLA equity add. I'll add more @ $150 then a full add @ $120

I will be adding TSLA equity if it can get down to 170ish✅

Is there a reason you are beginning to add now if you believe it will hit $120 eventually?

[Blazed]

Originally Posted by Braswell10

Is there a reason you are beginning to add now if you believe it will hit $120 eventually?

So I can start selling calls against my shares and collect that premium. $170 was my first price target. $150ish is a realistic next support level and $120 is possible but not likely until EOY or early next year when the recession is in full swing.

Buying and holding is nice, but if you got in at say $190-$200 and didn't sell calls against your shares, you're sitting on a nice $20-$30 loss per share. Always make your shares work for you.

[Braswell10]

Originally Posted by Blazed

So I can start selling calls against my shares and collect that premium. $170 was my first price target. $150ish is a realistic next support level and $120 is possible but not likely until EOY or early next year when the recession is in full swing.

Buying and holding is nice, but if you got in at say $190-$200 and didn't sell calls against your shares, you're sitting on a nice $20-$30 loss per share. Always make your shares work for you.

Ah okay, I did not think about it like that. When I add, I won’t be able to add 100’s of shares at a time, so I wasn’t even thinking about selling calls.

[ajlaxmn]

Based on 4123 Open.

Bottom 4100 (3.8K O/I), Top 4175 (break above 4190), Key Level 4130 (acted as resistance previously, 2.5k O/I)

SPY 413 Puts
SPY 409.6 Calls

[Blazed]

Trade smart don't force anything

SPX: 4170 top (break above 4180 > 4195 > 4200) / 4100 bottom (break below 4080 next support) / 4130 key level (4150 resistance)


Watching:

SPY reject 415 for puts

SPY bounce 410 for calls

TSLA Watching 163.9 for a bounce. Below that, main area is down @ 159.75.

[ajlaxmn]

If today is antying like the past coule days, their will be a small move in the morning, then it will slowly grind in the opposited direction the remainder of the day. I wonder if we will hang around 4130 most of the day killing Put Theta, then slowly grind up.

[Blazed]

Originally Posted by Blazed

Trade smart don't force anything

SPX: 4170 top (break above 4180 > 4195 > 4200) / 4100 bottom (break below 4080 next support) / 4130 key level (4150 resistance)


Watching:

SPY reject 415 for puts

SPY bounce 410 for calls

TSLA Watching 163.9 for a bounce. Below that, main area is down @ 159.75.

Trade recap:

Another range day only good for scalping. I did scalp ajlaxmn's 413 reject level. I completely missed it when checking levels this morning I was too focused on TSLA.

TSLA Watching 163.9 for a bounce.✅ - I took the TSLA 165 bounce this morning (close enough, base was built and volume confirmed) bounced a little early but worked out perfect.

I sold calls ($200 strike) when TSLA hit $169.50 earlier this morning and will be buying them back when TSLA hits my next price target of $150ish. Still looking for $120 on TSLA. Weekly chart $120 is the super trend, full add when we get there. This will be a long term equity hold and I will continue selling calls/puts against my shares.

"Trading is a job where you get paid for your decisions, not your time. You can spend hours in front of a your screen and still make $0." - saw that thought it was pretty cool.

Hope everyone enjoys the rest if their day.

[ajlaxmn]

Originally Posted by Blazed

Trade recap:

Another range day only good for scalping. I did scalp ajlaxmn's 413 reject level. I completely missed it when checking levels this morning I was too focused on TSLA.

TSLA Watching 163.9 for a bounce.✅ - I took the TSLA 165 bounce this morning (close enough, base was built and volume confirmed) bounced a little early but worked out perfect.

I sold calls ($200 strike) when TSLA hit $169.50 earlier this morning and will be buying them back when TSLA hits my next price target of $150ish. Still looking for $120 on TSLA. Weekly chart $120 is the super trend, full add when we get there. This will be a long term equity hold and I will continue selling calls/puts against my shares.

"Trading is a job where you get paid for your decisions, not your time. You can spend hours in front of a your screen and still make $0." - saw that thought it was pretty cool.

Hope everyone enjoys the rest if their day.

That is a great quote.

With all due respect I am probably going to add TSLA around the same time you do (real trade), for a long term hold. I think I am then going to papertrade 200 - 300 shares of TSLA to try out selling covered options as I want to explore that, heard of it, but never really thought much of it, but you explaining selling covered calls at highs (assuming covered puts at lows?). I want to see how it plays out.

[Jed Clampett]

Love me some TSLA when it gets pounded like today down 12% and goes on sale
Long term love TESLA

[Blazed]

Originally Posted by ajlaxmn

That is a great quote.

With all due respect I am probably going to add TSLA around the same time you do (real trade), for a long term hold. I think I am then going to papertrade 200 - 300 shares of TSLA to try out selling covered options as I want to explore that, heard of it, but never really thought much of it, but you explaining selling covered calls at highs (assuming covered puts at lows?). I want to see how it plays out.

If you get into the equity side definitely learn about selling covered options. Selling covered calls is an easy way to generate some extra premium out of your shares. I very rarely sell puts, always selling calls. Reason for that is, any type of bad news that tanks the market and your puts will be screwed. So 95% of the time I sell calls about $25 - $30 above what I paid for the stock. TSLA for example, I paid $172/share. So I sold the $200 strike - that way if for some reason I can't buy my calls back (this has never happened yet) and they get exercised, I still come out way ahead. I'll get to keep the premium I sold the calls for ($21k) and I'll get $200/share vs. the $172 I paid. To break down even further, if you take the $21k premium I got for selling calls and subtract that from the total amount of shares I bought, I got my TSLA shares for $151/share.

A lot of people have 500 or 1000 shares of a stock and they think holding it for that tiny $1,000/year dividend is good but don't think about the other ways they can make their shares work for them. They could be selling covered calls and collecting that premium and collecting the dividend.

But this type of stuff is exactly why they don't teach finance in high school they don't want people to understand good debt vs. bad debt and how interest on that debt can screw you. They want people to constantly be saddled with debt from buying stuff they can't afford, because when you're saddled with debt you have to work more or get a second job. The more you work the more taxes you pay. The more taxes you pay the more the government can waste. It's a never ending cycle.

/end rant lol.

[Blazed]

Originally Posted by Blazed

Trade smart don't force anything

SPX: 4170 top (break above 4180 > 4195 > 4200) / 4100 bottom (break below 4080 next support) / 4130 key level (4150 resistance)


Watching:

SPY reject 415 for puts

SPY bounce 410 for calls

TSLA Watching 163.9 for a bounce. Below that, main area is down @ 159.75.

Congrats if you took the 4150 reject - I did not - but it paid nicely.




And also notice where the closed us. 4th day in a row they've pinned us at the key level - that's the power of OPEX lol. Hopefully we get a bigger range/move tomorrow.

Originally Posted by Jed Clampett

Love me some TSLA when it gets pounded like today down 12% and goes on sale
Long term love TESLA

Yessir, that's why this will be a long term hold for me this time. I see TSLA back up into the $500/$600 per share and if this whole "go green" pans out could hit $900/$1000 in a few years.

[Blazed]

Anybody else catch this? I was looking at TSLA charts and saw some big price spikes. No TSLA isn't trading at these prices. The big players who keep the markets running are sorting out their positions. They are often agreed on in advance so they happen outside of normal hours so it doesn’t disrupt everyone’s systems and look like there's a rally happening. It's always interesting to see this stuff.

[ajlaxmn]

Originally Posted by Blazed

Anybody else catch this? I was looking at TSLA charts and saw some big price spikes. No TSLA isn't trading at these prices. The big players who keep the markets running are sorting out their positions. They are often agreed on in advance so they happen outside of normal hours so it doesn’t disrupt everyone’s systems and look like there's a rally happening. It's always interesting to see this stuff.

That’s wild. It’s definitely interesting seeing how the big boys can manipulate and move the markets. I can’t imagine the amount of people that possibly day trade options that aren’t aware of this, that would definitely have been myself if it wasn’t for the information you provided, and try to trade calls and puts routinely on weeks like this week and just get smoked with Theta decay.


Sent from my iPhone using Tapatalk

[ajlaxmn]

Based on 4130 open.

Bottom 4100 (8k Puts O/I), Top 4200 (13K O/I, I realize maybe this could be 4190, either that or 4190 is resistance, Key level 4150.

SPY Puts 413.5, break above 415
SPY Calls 410.3

Blazed, with the market Puts heavy, would you expect Calls to be the play? Seems like their is a lot of O/I for Calls, you think MM keep us choppy to kill Calls Theta then move heavy at end of day upwards?

[Braswell10]

You guys like Google? Earnings coming up 4/25, I could see it jumping.

[Blazed]

Originally Posted by ajlaxmn

Based on 4130 open.

Bottom 4100 (8k Puts O/I), Top 4200 (13K O/I, I realize maybe this could be 4190, either that or 4190 is resistance, Key level 4150.

SPY Puts 413.5, break above 415
SPY Calls 410.3

Blazed, with the market Puts heavy, would you expect Calls to be the play? Seems like their is a lot of O/I for Calls, you think MM keep us choppy to kill Calls Theta then move heavy at end of day upwards?

Nice job on the SPX levels, I see the SPY levels hit too. I wasn't able to trade yesterday due to bad storms in the Houston area and a neighbors tree fell on one of my rental properties. So I spent all day with that but I see I didn't miss much. I was expecting a move yesterday but I see they chopped and closed us at the key level again. So all last week they were killing option premiums both ways. $1.4 trillion in options expired yesterday, so that should take some pressure off the market and we should see some nice moves this coming week with earnings.

I really wanted 4200 last week as that was going to be my short entry but we didn't get it. We could get it this week, but if the market wants to go up MSFT GOOG and META need to deliver good earnings. So next week will be a very fun week.

Originally Posted by Braswell10

You guys like Google? Earnings coming up 4/25, I could see it jumping.

My bias for GOOG is short for earnings. GOOG has room to 107.7 and should get a nice reject there before earnings. My top watches are AMZN MSFT META GOOGL UPS CAT. I'll also be watching credit card earnings, the outlook on there will give an idea of how many people are tapped out and slowing down their spending.

[ajlaxmn]

Based on a 4134 open.

SPX Bottom 4100 (break below 4080), Top 4195 (break past 4180 and we get to 4195), Key Level 4150

SPY Puts 413.5
SPY Calls 410.3 - .5

[Blazed]

Big earnings week - GOOGL, MSFT, META and AMZN - will these be the catalysts for the next move or we will move sideways into next week's FOMC meeting? It's only Monday, see how the market moves and don't force anything. Let the trades come to you.

Levels unchanged from Friday.

SPX: 4170 top (break above 4180 > 4195 > 4200) / 4100 bottom (break below 4080 next support) / 4130 key level (4150 resistance)


Watching:

SPY reject 413.8 for puts
SPY bounce 410 for calls

TSLA - since I'm getting a few questions on TSLA - the price target for my next equity add is 145 (this level can be found on the daily chart) and I will add full position @ 120 - 122 (this level can be found on the weekly) if we can get down there. Weekends/evenings are a good time to be looking at and learning charts.

[Blazed]

Originally Posted by Blazed

Big earnings week - GOOGL, MSFT, META and AMZN - will these be the catalysts for the next move or we will move sideways into next week's FOMC meeting? It's only Monday, see how the market moves and don't force anything. Let the trades come to you.

Levels unchanged from Friday.

SPX: 4170 top (break above 4180 > 4195 > 4200) / 4100 bottom (break below 4080 next support) / 4130 key level (4150 resistance)


Watching:

SPY reject 413.8 for puts
SPY bounce 410 for calls

TSLA - since I'm getting a few questions on TSLA - the price target for my next equity add is 145 (this level can be found on the daily chart) and I will add full position @ 120 - 122 (this level can be found on the weekly) if we can get down there. Weekends/evenings are a good time to be looking at and learning charts.

Trade recap:

I took the 413 reject. SPX was clearly having trouble @ 4141 and rejected off it 5 times so on the 6th reject I took puts.

SPY reject 413.8 for puts✅- The gains on this trade were luck. It looked like we were going to range again for small moves up and down. So I took SPY instead of SPX so I could load up on contracts (150 contracts) since I was only expecting a small move for a scalp. Well the small move turned into a sell off, so I trimmed on the way down, definitely wasn't expecting that big of a move.






Education:

[ajlaxmn]

Originally Posted by Blazed

Trade recap:

I took the 413 reject. SPX was clearly having trouble @ 4141 and rejected off it 5 times so on the 6th reject I took puts.

SPY reject 413.8 for puts✅- The gains on this trade were luck. It looked like we were going to range again for small moves up and down. So I took SPY instead of SPX so I could load up on contracts (150 contracts) since I was only expecting a small move for a scalp. Well the small move turned into a sell off, so I trimmed on the way down, definitely wasn't expecting that big of a move.






Education:

I took SPX calls off the open based on the breaking above previous close and volume. Exited at 412.9 multiple rejects, saw it off the first reject but waited, kept rejecting, so exited. Got a $300 profit, could have been as much as $500, but I won't balk at what I got. The entry was more intuition, even though I have limited experience so maybe I really don't have that, entry just felt good at the time.

[Blazed]

Originally Posted by ajlaxmn

I took SPX calls off the open based on the breaking above previous close and volume. Exited at 412.9 multiple rejects, saw it off the first reject but waited, kept rejecting, so exited. Got a $300 profit, could have been as much as $500, but I won't balk at what I got. The entry was more intuition, even though I have limited experience so maybe I really don't have that, entry just felt good at the time.

Nice trade! That's one I usually take but with all last week being a tight range I wanted to wait and see what the market felt like doing since we have a big earnings week then FOMC.

I see we're right back where we opened at and have been around this area all day. Lets see what power hour does, might get a bigger move the last 10 mins today during algo time.

[ajlaxmn]

Originally Posted by Blazed

Nice trade! That's one I usually take but with all last week being a tight range I wanted to wait and see what the market felt like doing since we have a big earnings week then FOMC.

I see we're right back where we opened at and have been around this area all day. Lets see what power hour does, might get a bigger move the last 10 mins today during algo time.

Seems that it stayed in a range mostly the entire the day except at the beginning with the move up and then the big move down.

[Blazed]

SPX: 4170 top / 4100 bottom (break below 4080) / 4130 key level ( 4140 resistance)


Watching:

SPY watching both ways - 410 is holding SPY up. I’m looking to fail 410 and retest for puts entry. Will also look for a bounce at 410 - we have bounced this area multiple times which could be making it weaker.

SPY reject 412.8 area for puts

SPY bounce 407 for calls

TSLA looking weak