this post was submitted on 02 Jul 2023
3 points (100.0% liked)

Options

92 readers
1 users here now

A community for discussing stock related options.

Rules:

  1. No bigotry: Including racism, sexism, homophobia, transphobia, or xenophobia. Code of Conduct.
  2. Be respectful. Everyone should feel welcome here.
  3. No NSFW content.
  4. No Ads / Spamming.
  5. Be thoughtful and helpful: even with ‘stupid’ questions. The world won’t be made better or worse by snarky comments schooling naive newcomers on Lemmy.

founded 2 years ago
MODERATORS
_MoveSwiftly
MaxCapacity
3
Weekly option strategies discussion - Week of July 3rd, 2023 (self.options)
submitted 2 years ago by MaxCapacity to c/options
3 comments fedilink hide all child comments
 

Discuss your plays for the upcoming week or closed positions from the prior week. A good strategy post should include several of the following elements:

  • the underlying ticker
  • any upcoming catalyst
  • the specific strikes and expirations in your position
  • trade plan
    • purpose of trade
    • position management
  • premium paid or collected
you are viewing a single comment's thread
view the rest of the comments
[–] MaxCapacity 1 points 2 years ago

Continuing my bearish thesis on CVNA. It had only one profitable quarter since 2017 and should not have a $5 billion market cap. My strategy of choice is put front ratio spreads to take advantage of both price pullbacks and IV collapse. My price target is $24 for the upcoming week.

BTO 7/7 $26P X1 STO 7/7 $25P X2

I've been running this for a couple of weeks successfully. When the short strike is breached, I am rolling it out a week and down several strikes for a credit, while closing the bear put spread for a credit at the same time. So generally collecting credit three times; at open, when rolling the short put, and when closing the spread. I've so far been able to close the rolled put after a day or two due to either theta decay or rolling it into a new front ratio.