Do any of you guys actually have any strategy for trading options? Whole different ballgame than just yoloing tech earnings every quarter. If the underlying moves in your favor, you can of course sell to close and the premium you receive will include the leftover time value.

There's no advantage to sell a profitable option the day before it expires than 70 days before it expires. The only downside is the increased price of long-dated options tying up more cash for less possible ROI on premium.

Of course you have greater intrinsic optionality with a long dated option The simple answer is Volatility.

Most of the trades are intra-day as you're aware in real time and essentially the theta threat acts as leverage with an increase in delta.

Right now I've been testing out short spreads which I base off of a mix of technical and fundamental analysis. I use short verticals because if I'm right on the direction, theta is in my favor and I don't need to worry about when to sell if it holds above the break even point. I like European style options for instance, cash-settled index options like SPX because there's no risk of early exercise.

I also scan for equity options with a high IV rank i.

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Shorting options with a high IV rank puts the probability of profit enormously in your favor, as long as your strike date is further out than any major near-term catalysts.

This is because the IV represents the premium on an options contract basically dictated by the supply and demand. People are willing to pay a lot more for options contracts near catalystic events, but then afterwards the IV returns to normal levels and so as long as the underlying didn't move way too far than you expected, you can expect to make money. That sounds solid, may look into paper trading that strat a little to see what I can do.

I'm mostly a stock trader, but I've always dabbled in options and I want to get more involved with them. Does your broker have an options volatility screener to search? Mine doesn't, and I've been struggling to find a free one. My most successful strategy revolves around ER. If a company has good sentiment, good IV history, and a positive earnings projections, then I'll buy calls days before earnings.

Depending on how the price is moving, I'll either sell days before earnings, or sell right before. If I come out on top I might keep a contract or two and play it through the report. Longer has more extrinsic improvement due to IV rise during ER. Or do you use shorter DTE just to profit based on Delta?

My expiry usually has to be at least 5 days after ER. I don't feel comfortable holding contracts that expire the day of or after ER, and anything to far out usually doesn't have the IV I like. First, I buy them with no real knowledge of what I'm doing.

I don't have knowledge because I opened an OptionsHouse account two weeks ago. Then I find what people suggest I buy and do that or the opposite, guessing wrong almost every time. If I do correctly guess the direction of the stock, I either sell it way too early ie BABA or way too late ie QCOM. Luckily I made some cash off of it, but dumped WAY too early. Locking in gainz is never a bad thing, but I missed out on quite a bit. There's always next earnings ;. Hahahaha look at you with your fancy fucking words Every hour we print out the top of WSB and throw a dart at it.

Whatever it hits we inverse and go all-in on calls or puts. I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns. Then, I grab a giant poster board and draw circles.

Then, I write a stock ticker in each circle, leaving a 2ft. Then, I grab an office chair, park it in the middle and down some laxatives. When I feel the ol' chocolate thunder, I pop my ass over the front edge of the chair and start spinning.

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While spinning, I open the floodgates. When I'm done, I see which one has the least amount of shit on it and YOLO. Think of them as a leveraged derivative.

I've been playing around with holding them for 0. So far have come out net positive. The biggest strategy I employ is selling when I'm up and not getting greedy holding on for huge gains. I like better on instability at the end of tech company lockups. I have puts against NTNX for April for this reason. I've been successful selling iron condors for earnings play lately. I'll look at the company's past earning moves and sell strikes that are outside of that range if premium is still worth it.

I'm still fairly new to selling options so I've been playing it safe. Because I totally do. Use of this site constitutes acceptance of our User Agreement and Privacy Policy.

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Don't try to talk about what you don't know. Don't post your losses or paper trades. No one gives a shit. Market Trading Hours Exchange Open Close Frankfurt 9: How I feel this morning looking at my portfolio There needs to be a broker function that will allow me to trash talk the person on the other side of my trades. Trading equities is so fucking boring once you play option volatility.

My blood is cold now. I rarely trade any contracts that expire more than 15 days out. We need risky investments.

I do a lot of backtesting and look at prior data to gauge a position, every ticker is different. It's a simple, yet effective strategy. I was about to buy a noose because of BABA. It's only DUST, JNUG, AMD, or UVXY.

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Hope they improve in value. I miss out on a lot of big moves, but like they say, nobody ever went broke taking a profit.

So is your suffering. This is an archived post. You won't be able to vote or comment. Posts are automatically archived after 6 months.