Hi Guys,
So disclamer, I am relatively new to options selling, I have done some directional option buying but wanted to learn more about selling/spreads etc. The resouces on Tasty trade are really good in this regard.
Anyways, I was looking at some of the analyst trades posted in there and they dont make any sense to me.
1. This analyst bought a TLT 78 $ Call and covered it by selling another call but its way OOM at 100 $, what's the poind of this, you get just 1 cent premium and ur not really covering anything, if anything ur capping ur profit.
https://preview.redd.it/pk1afo8wwquh1.png?width=1436&format=png&auto=webp&s=b5326881e5156233bbd18ef8c4f156ceaf5695e7
2) This Analyst got a MU butterfly OOM on 10/8 with 6 DTE. The Risk reward on this doesnt make sense to me, if anything MU is technically super bearish now, its on a downtrend after their earnings , I dont see a world where it will goes >1100 in 6 days
https://preview.redd.it/1xesii5ovquh1.png?width=1428&format=png&auto=webp&s=baf45678aa36cb74cbe006ea3ca77b53fe6428bb
On a related note is it worth following/studying trade analyst recommendations on tasty trade, or are there any better resources to learn from good options traders? I plan to just learn and follow traders for a while before starting anthing... Also I dont have the Buying power to trade these anyways :(
PS: I did learn something from some of the analyst feed trades like this NVIDEA trade on 10/9 makes a lot of sense and sounds like something I would be willing to do, Buying a ITMPut because its basically like buying a short and covering it with another OOM Put, makse sense because all Semi's got killed this week
https://preview.redd.it/voa218kjxquh1.png?width=1445&format=png&auto=webp&s=c5582e95fb83f316020066fbb20a493d690fcafd