r/options
Posts
Risk Management for Iron Fly
Hi all, Suppose I have an Iron Fly position, and the underlying becomes highly volatile, likely to breach the breakeven points. What positions can I take to manage the risk effectively? Please note that an Iron Fly is a short vega, short gamma position. One idea I have is that …
GOOG 4/17 $200 calls loss - do I sell/hold?
I bought Google calls after what I thought was an overreaction to the earnings when it was ~$193. Stop loss did not hit due to tanking overnight and it was down over $2k at market open. Based on my research, the fair value is beyond $200 especially when comparing to …
Box Spreads during chaos
There's some people around reddit who are concerned about the possibility of Trump/Musk defaulting on treasury payments. Obviously that would cause an economic catastrophe and something I think is unlikely to happen. But out of curiosity, if something wild like that happened and the value of Tbills cratered, what would …
almost zero delta and higher theta ... advantages
ok so my filters kicked up this trade a few minutes ago, and I backed away from it because it was not what I was expecting to show up. Risking 2.12 for 4.85 just seems like I'm making the market makers and brokers money. Not seeing it. https://preview.redd.it/u45pqjwutrie1.jpg?width=837&format=pjpg&auto=webp&s=2fe94634c08399b12c87675089b1af6474cf3ed3
Tax optimization
It’s frustrating to see that 50% gain is actually just 35% after you pay the taxes! Are there any tricks for reducing short term capital gain tax? I know about using spx but are there any other such tricks we could leverage? Edit: Aggregating some ideas i have seen in …
Feeling discouraged
I was really getting in the groove of trading options, having my best month ever after 5 years of trading. The excitement got to me, I started making too many mistakes, fixed that but still taking on too much size. Lost everything I made, then once I hit break even, …
debit spread expiration
Hello, I've noticed that a general rule when writing a covered call (wheel strategy or etc), people usually elect to go for 30-45 days out. Some people go for as short as 30 days but it seems like the sweet spot for many are between 30-45 days. I am not …
ETFs Only
Anyone else here day trading pretty much exclusively ETF options? My buddies are always going nuts on a million different stocks and im just riding the ups and downs of the same 5-6 ETFs. Idk maybe they just work best for my indicators, maybe its my comfort zone because its …
I really need help on my AppLovin call
I have just got into options trading recently. I learnt selling strangle to make a profit from IV crush. So I've been doing that for the past two weeks. It was working great. Today I saw this stock called AppLovin and it has an insanely high IV. So instead of …
Bid/Ask midpoint compared to theoretical value
Some options have a bid/ask midpoint higher than their B&S theoretical value, while others have one lower. I obviously know that this is not a tool to derive edge from, but I am wondering what it means when an option is for sale at a price less than its theoretical …