Posts
r/options thread heading - the Black Scholz PDE and its significance in options trading
If you're on r/options you've probably seen this in the sidebar: ∂V/∂t + ½σ²S²(∂²V/∂S²) + rS(∂V/∂S) − rV = 0 V = option value, S = stock price, t = time, σ = volatility, r = risk-free rate. The Black-Scholz PDE. Looks scary. It's not — every term is a …
Trying to understand the full implications of selling both short and medium/long expiry calls
I have been reading quite a bit on options, including the FAQ on the sidebar. But when dealing with money I like to be sure that I'm not missing something My major point of confusion is with short term expiry/unqualified covered calls. Say I own 100 shares of stock XYZ …
Tips on LEAPs for 3X LETF
I've been mostly trading short term options in the past few years and want to diversify my strategy a bit and do some LEAPs. Curious if anyone had experience trading 12-18 month LEAPs on 3X leveraged ETFs and holding them beyond 12 months? I understand volatility drag exists hence the …
Adjusted options weirdness
Hi! I'm a generally conservative options trader, mainly I sell covered calls and cash-secured puts on companies that I'd be happy to own at the strike price. Recently, I stumbled upon an adjusted option that I don't understand. The company recently went through a reverse split. There's now an adjusted …
Bought to close my 10 Nvidia calls and rolled to 2027, strike from $134 to $150
Hey everyone. Shareholder of Nvidia since January 2016 ($0,74 cost/share; 1100 shares) in my TFSA account (tax free saving account, a registered Canadian account where you don't pay any taxes whatsoever on profits). Back a few years ago I was selling covered calls on my Nvidia, usually 15-20% higher strike …
Need advice on Level 2 Options data for low-volume options on AMEX (selling after catalyst)
Hi everyone, I’m currently buying call options on a stock that has a major upcoming catalyst (Phase III clinical trial results for a drug). The problem is that these options have very wide bid/ask spreads and relatively low volume. My plan is: once the catalyst hits (if positive), I want …
"Right, but not the obligation" : a myth for retail traders? Auto-liquidation despite a DNE.
Hey everyone, looking for a sanity check / discussion on a structural issue with retail brokers that is driving me crazy. We all know the textbook definition of a long option: It gives the buyer the right, but not the obligation, to exercise. Here is the scenario I just dealt …
Posted GEX levels before market open Friday— 8 out of 11 held at king by close
Been tracking gamma exposure levels and posting them before the bell. Wanted to share Friday's results because they were pretty clean. Friday 5/22: Before open I had SPY king at $746, QQQ at $718, NVDA at $215, TSLA at $425, META at $610, GOOGL at $382. By close — SPY …
Advice on RKLB leaps
Hello everyone. Got this one contract about a month ago. As you can see, once it passed a certain threshold I put a stop loss in place to secure just under 100% in case of a pull back. I’m wondering what to do with this. I still believe in RKLB …
Options with Ravish
I stumbled upon YouTube channel of someone named Ravish who makes outrageous claims of making $50-60K/month selling covered call and trading calendars and diagonals. He shows his account balance and current month realized gains but no actual trades. He also either promotes his "mentorship" or gives a text book explanation …