Posted by jackbnimble on 26th of Jan 2022 at 05:15 pm
TSLA put credit spreads leading into earnings were too tempting
to ignore. Opened some 800/790 spreads (just under the 200ma)
expiring in two days. As of now, it looks like a quick 8% play.
Does anyone have thoughts on using far OTM put credit spreads for
earnings? Even at 750/740 strikes, the return
could be 2%. Seems like a nice strategy to keep in
the toolbox.
Posted by fredsaid on 26th of Jan 2022 at 11:07 pm
Looked like a risky move to me as well. I fully expect
TSLA to test that area but takes some balls to say it ain't gonna
happen in the next 2 days so kudos to jackbinimble. It's like
a 9 to 1 in favor of not gonna happen... but you gotta deal with 2
days of fun ... er sweat .. er fun. :)
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TSLA put credit spreads leading
Posted by jackbnimble on 26th of Jan 2022 at 05:15 pm
TSLA put credit spreads leading into earnings were too tempting to ignore. Opened some 800/790 spreads (just under the 200ma) expiring in two days. As of now, it looks like a quick 8% play. Does anyone have thoughts on using far OTM put credit spreads for earnings? Even at 750/740 strikes, the return could be 2%. Seems like a nice strategy to keep in the toolbox.
20 Delta I like
Posted by steverobin on 26th of Jan 2022 at 07:42 pm
20 Delta I like
Isnt 20 delta too risky
Posted by arun on 26th of Jan 2022 at 09:04 pm
Isnt 20 delta too risky for a stock like Tesla ?
assuming if it pulls off a move like NFLX
A 20 Delta sell in
Posted by steverobin on 27th of Jan 2022 at 05:56 am
A 20 Delta sell in a spread gives an 80 percent chance of being correct. I normally employ this type of trade with stocks/indexes other than TSLA.
Thank you for sharing. How
Posted by arun on 27th of Jan 2022 at 06:40 am
Thank you for sharing. How often did you notice you got called with 20 delta ( even though it says 80%) just your personal experience
Which broker gives the best deal for this kind of trades in terms of locking up capital
Looked like a risky move
Posted by fredsaid on 26th of Jan 2022 at 11:07 pm
Looked like a risky move to me as well. I fully expect TSLA to test that area but takes some balls to say it ain't gonna happen in the next 2 days so kudos to jackbinimble. It's like a 9 to 1 in favor of not gonna happen... but you gotta deal with 2 days of fun ... er sweat .. er fun. :)