I trade from IB a lot still - in IB they way they treat shorts
is to simply sell an item, there is no sell short action to select
from, just buy and sell.
on the screen I was in, it had the SPY PUTs that I had carried
over the weekend and sold, since they were right there on the
screen I simply elected to sell the same PUT that I had previously
owned - that's all it was nothing more complicated than
that.
Posted by jj4376jc on 21st of Sep 2021 at 07:40 am
Can't speak for Matt on this specific trade. However I prefer to
sell options vs buy them when volatility is high. Sell the Premium
vs pay the premium. The main disadvantage(theoretical) is that you
cap your upside to the credit you receive. Whereas if you buy the
option the upside is far higher and the downside is capped to price
paid. I personally like Calendar and Diagonal spreads, I will sell
a shorter term option to help pay for the longer term more
expensive option. As wih all option trades be sure you
understand the risk reward before trying, they can go wrong
quickly. Hope that made sense, LOL.
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Hey Matt, could you explain
Any update on system trades for the close? McClellan, etc?
Posted by mrjasongill on 21st of Sep 2021 at 12:20 am
Hey Matt, could you explain why you wouldn't just buy calls vs. going short puts? option pricing?
I trade from IB a
Posted by matt on 21st of Sep 2021 at 08:53 am
I trade from IB a lot still - in IB they way they treat shorts is to simply sell an item, there is no sell short action to select from, just buy and sell.
on the screen I was in, it had the SPY PUTs that I had carried over the weekend and sold, since they were right there on the screen I simply elected to sell the same PUT that I had previously owned - that's all it was nothing more complicated than that.
Can't speak for Matt on
Posted by jj4376jc on 21st of Sep 2021 at 07:40 am
Can't speak for Matt on this specific trade. However I prefer to sell options vs buy them when volatility is high. Sell the Premium vs pay the premium. The main disadvantage(theoretical) is that you cap your upside to the credit you receive. Whereas if you buy the option the upside is far higher and the downside is capped to price paid. I personally like Calendar and Diagonal spreads, I will sell a shorter term option to help pay for the longer term more expensive option. As wih all option trades be sure you understand the risk reward before trying, they can go wrong quickly. Hope that made sense, LOL.