/biz/ - Business & Finance

>>21330852
You're absolutely correct. I don't go in with all of my portfolio and always turn gains from the $50k collateral into a wheel for AMZN/TQQQ.

If all else fails, I'll pull some AMZN RSUs. If I manage to hit 7 figures on my wheeling account, I'll up the spread collateral to $100k. So I guess you can say I'm writing the spreads with 10% of my portfolio at all times and offloading any realized gains into the non-spread side of my portfolio.

These positions work out.. until a black swan event happens and they don't work out. I've had a few burns before on stocks I didn't fully understand (GLD, SLV) so I'm sticking to what got me here. Here are some pretty risky spreads I wrote a few weeks back for entertainment purposes.

>>20869311
Somebody bets that Amazon is going to go down and they pay me a premium and I buy another bet to hedge against it. As time passes, it becomes more certain that Amazon is not going to drop $250 so the value of the contracts I wrote decrease. At that point I can "buy back" the contract I wrote for like, 2 cents per share even though I originally sold it for say, 89 cents a share.

>>20869316
There's obviously still some risk if you're doing options near earnings but as you can see, even Amazon who blew EPS by 650% (that's INSANE) only went up by 4-6%. The same goes for bad earnings, most companies won't drop 7-8% even while reporting bad earnings unless it's some real bad news shit like Intel.

So I generally stick to high volume, medium volatility megacaps like FB, AAPL, AMZN for these spreads. I win like 99% of the time on these trades because the strikes are so safe but I still make 10-15% per trade. It's great!

>>20869332
Yes you need some cash or stocks to write the options if you're ONLY selling them. I'm writing spreads, so you can still make an AMZN spread play for $500 collateral if you choose strikes that are $5 apart (1 contract = 100 shares = $5 difference per share = this is your total risk for that spread)

>>20618401
Reporting in

>>20615354
What were you saying, you retard?