I've recently started dipping my toes into selling options and am currently on Moomoo. They have a cash sweep account, which is confusing me a little. If sell CSPs with a strike price that adds up to say $10,000, shouldn't that money still be in the cash sweep account earning interest and only withdrawn if I get assigned?

I ask because they are telling me that's not the case, and only funds that are 100% unencumbered earn interest, and that seems wrong to me.

Hello, I have been selling options for a while now (CSP & CC), but I am wondering which brokers would let you sell naked and what are the requirements? Thanks

I was wondering what would maximize my return, if leaps or stocks.

Let's assume I'm confident that a stock will x2 by Jan 2027.

What would be more profitable? I have the doubt cause of tetha and the decaying thing. I'm a bit of a noob so I would like to know your more expert take.

FellaZ,

I am not a sophisticated options trader by any means. I only sell CCs, puts, put spreads, and do buy-write stuff.

I do a half decent deal of it, but it's not my main strategy. I'm more of a defensive income sort of chap as far as my personal holdings go and have a S&P500 401(k).

At any rate, I have a question for this group; is there a specific name for the following strategy?

• Stock A is trading at $100 today.
• I sell 5 puts at $100, another 5 at $97.5, and another 10 at $95.
• I buy 20 puts at $92.5 to put a cap on my loss.
  • All options are for the same expiry date.

I get it that it's essentially 3 separate put spreads at 3 separate widths. I personally find it useful to look at it as one trade as it helps with fine tuning the risk to reward.

I came across this when I was putting various scenarios into my Excel model but couldn't get to a specific max reward to max loss ratio that I was targeting and realized that I can get there by doing this.

I know people always ask these types of questions, but I’m genuinely curious about the cons of this strategy. The stock is OKLO and I’m slightly bullish on it, and the premiums are great. 2 weeks DTE gets me a max profit/loss ratio of around 8-9%. Volumes are also decent as well given that it’s sorta meme stock on WSB.

So I would buy CSPs slightly below market price, and when I get assigned, immediately sell near ATM covered calls with 2 weeks DTE for another 8-9%.

I would make around 3k with a capital of around 19k in a month. Anything wrong with this strategy? I understand I wouldn’t capture sudden spikes on the underlying shares, but i would still come out with a decent change.

Example: I sell a 60 day CC for a 12K premium. After 30 days I want to roll it forward to 60 days again. It will cost me 16K to close, but I'll receive 20K by reselling the call at 60 days. Will I show a short term capital loss of 4K by closing the first position? What are the negative tax implications if any. Thanks for any help!

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

In the scenario you sold a 1 naked OTM and the underlying is starting to move against you, when would you:

1. buy the 100 shares of the underlying

2. buy the call delta * 100 shares of the underlying

3. buy back the call

It seems to me that 1 & 2 could be better options if they're done before the Call goes ATM but I'd love to hear other opinions on this.

Hello all

I am looking for some resources to read up on selling call and put credit spreads.

I have gone on YouTube and watch option alphas videos on them.

But want to know more of what I would get myself into when I decide to trade them.

Plan on just getting started with indexes and possibly just paper trade until I learn more and build the confidence to actually put my real money on the line.

I've searched around but couldn't find a direct answer. If I sell Puts OTM, collect the premium, and they go ITM at expiration, and I want to be assigned at the strike price. What happens to the loss that is showing due to the underlying price fall? Would it get combined with the underlying purchase price during assignment? Thanks in advance.

Summary of Plan:

• Initial Capital $300k
• Monthly return goal $7K (2.3% per month / 28% per year on Initial Capital)
• Strategy, selling options on futures (Strangles, Ratios, Wheel micros)
• Keep BP below 50%
• Goal: Consistent Income

Previous months NLV fluctuation:

1. +3.72%
2. +4.10%
3. +2.12%
4. -1.14%
5. +3.85%
6. +4.23%
7. -0.11%
8. -2.02%
9. +0.79%
10. +3.42%
11. +2.24%

https://preview.redd.it/vvwt2r8igh4e1.png?width=1313&format=png&auto=webp&s=42bb4acbd2f9a36a28d2002ebd8a7926fa09df97

https://preview.redd.it/6qwl7w5jgh4e1.png?width=2327&format=png&auto=webp&s=f92affdb3faed4b21d68b3d54705507436ff5583

https://preview.redd.it/4szhgn3kgh4e1.png?width=795&format=png&auto=webp&s=f0d555322d2a246376af90b4f60d3555cbec1cd4

I have been posting every month this year, and will continue to post, good or bad for the whole year.

Had to take 1 loss this month from a Put Back Ratio that I had just sold. It was bad timing to try something new I guess. The reason I was interested in the Put Back Ratio was because it used way less BP (~1.5k vs ~6k) for the same return and it has no naked positions. Max loss would have been $17k at the bottom of the trench. It's still something I intend to play around with.

Nothing else to really say about November, I have been tapering down everything for next year, where I will be using a smaller account with smaller goals.

Thanks for reading. Ask any questions below and I will try my best to answer them.

Happy trading.

Link to my report in the comments.

Hey everyone, looking at a ZCC on Ibit. Seems pretty good with no downside risk, no entry cost other than shares and commissions

Exp: March 19, 2025

Buy 100 Shares @ 55

STO -1 57C @ 7.00

BTO 1 55P @ 7.00

Expiration: IBIT at 30, 0 downside exposure due to long put. IBIT at 55, options both expire worthless, IBIT at 100, shares called away for max profit. I do have cost of carry with my box spread which would be about a -1.5% drag so technically max loss is 82 bucks.

Thoughts?

So I'm studying more about options, and finding that my broker (IB) doesn't like that much CSP, I'm investigating synthetic options.

A synthetic put is short stock, long call.

Therefore, a synthetic short put is long stock, short call. I/E buy/write or covered calls.

Am I missing something, or just doing ITM CC is efrectively a synthetic short put but with more commissions?

Highest Premium

These options offer the highest ratio of implied volatility (IV) relative to historical volatility (HV). These options are priced to move significantly more than they have moved in the past. Sell iron condors on these as they may be over priced.

Expensive Calls

These call options offer the highest ratio of bullish premium paid (IV) relative to historical volatility (HV). These options are priced expecting the underlying to move up significantly more than it has moved up in the past. Sell these calls.

Expensive Puts

These put options offer the highest ratio of bearish premium paid (IV) relative to historical volatility (HV). These options are priced expecting the underlying to move down significantly more than it has moved down in the past. Sell these puts.

• Historical Move v Implied Move: We determine the historical volatility (log variance of daily gains) of the underlying asset and compare that to the current implied volatitlity (IV) of the option price. This is used to determine the Call or Put Premium associated with the pricing of options (implied volatility).

• Directional Bias: Ranges from negative (bearish) to positive (bullish) and accounts for RSI, price trend, moving averages, and put/call skew over the past 6 weeks.

• Priced Move: given the current option prices, how much in dollar amounts will the underlying have to move to make the call/put break even. This is how much vol the option is pricing in. The expected move.

• Expiration: 2025-01-17.

• Call/Put Premium: How much extra you are paying for the implied move relative to the historic move. Low numbers mean options are "cheaper." High numbers mean options are "expensive."

• Efficiency: This factor represents the bid/ask spreads and the depth of the order book relative to the price of the option. It represents how much traders will pay in slippage with a round trip trade. Lower numbers are less efficient than higher numbers.

• E.R.: Days unitl the next Earnings Release. This feature is still in beta as we work on a more complete list of earnings dates.

• Why isn't my stock on this list? It doesn't have "weeklies", the underlying is "too cheap", or the options markets are too illiquid (open interest) to qualify for this strategy. 480 underlyings are used in this report and only the top results end up passing the criteria for each filter.

Good Day Guys and Gals.

I was investigating MSTX to consider if selling puts would be viable, and I'd have to say that for my risk tolerance it is not. The Bollinger Band is pretty huge, even over a 5 day period.

It traded from $15 to over $200 in 2 months...then back to $100 in a couple days. The Bid/Ask spread can be quite substantial, which means if you sell a contract and buy it back immediately after, you're already down.

I like premium as much as the next options seller, and I'm nowhere near as advanced as many of you...but I'd like to share this for those that are less advanced. All it takes is for one bad trade to wipe out recent gains and cause new investors to throw in the towel. I could have succumb to a similar fate with a recent MSTR trade.

Now I won't say I'd never sell a contract in MSTX, but the conditions have to be ideal. For those that are considering doing so, please consider the RSI of MSTR and the Moving Average of BTC before pulling the trigger. MSTR is already a wild ride...MSTX amplifies this.

Happy Investing

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

Here's some info on the newly released Robinhood Legend platform (condensed from the disclosures statement). Some of these features don't seem to me as improvements over the classic platform. Thoughts?

• Robinhood Legend is intended to be a real-time analysis and trading platform.
• Important securities details that are usually visible on the Stock Detail Page via mobile app or Robinhood classic are not available in Robinhood Legend. This includes various product details such as Key Statistics, Full Order History, prospectus information for certain securities, company earnings, and analyst ratings. If you would like to view such information, you can use the mobile app or login to Robinhood classic on robinhood.com.
• Your trade confirmation and statements will be accessible via mobile app and Robinhood classic, but not on the Robinhood Legend platform; ii) your Dividend Reinvestment ("DRIP") and Recurring Investments orders (pending and filled) will not be viewable on the Recent Orders Widget on Robinhood Legend; iii) Joint Accounts are not supported on Robinhood Legend; and iv) Futures, Index Options, and Crypto trading are not available on Robinhood Legend.
• Important note about Robinhood Legend Options Trading: When closing an options position, particularly a multi-leg position, Robinhood Legend will name the order solely based on the contracts in the order and not on the position or strategy being acted upon. This is different from the experience in-app or on Web Classic, where the order's name reflects the position being acted upon.
• Options
  • The default limit price on the limit order form will be the natural price (bid for sell and ask for buy) at the time the form is opened. For multi-leg orders, the default limit price will be the mark price (i.e., generally the midpoint of all options that make up the legs of the multi-leg spread) at the time the form is opened.
  • The default limit price on the stop limit order form will be set to the stop price value on the order form and will move in conjunction with the stop price, until it is changed by the user. The stop price value on the order form will be defaulted to 1% below bid for sells (or rounded down to the next available tick increment) and 1% above ask for buys (or rounded up to the next available tick increment) at the time the order form is opened. Stop orders for multi-leg orders are not supported.
  • The default order type will be limit.
  • The default time in force will be a good for day order.
  • The default quantity will be 1 contract.
• To view standardized performance, as well as performance current to the most recent month-end, visit the relevant ETF's details page either through our mobile app or Robinhood classic by logging in on robinhood.com.

Has anyone done a deep dive into these ETFs and how they are structured / risks ?

Crazy yields of 67% and 25% weekly yield right now? what is going on here? is the expense ratio also weekly?

https://www.roundhillinvestments.com/etf/qdte/

https://www.yieldmaxetfs.com/our-etfs/ymax/

https://www.yieldmaxetfs.com/our-etfs/

I know I know. But it’s cheap and I could sell covered calls to WSB with no care of getting the shares taken away. Premium seems good.

This is a dumb idea, right?

Noticed that the IV is low these days, usualy do 35>dte CCs for rev generation on nvda but I guess the low volumes are affecting premiums these pas 2 weeks (IV crush following earnings)

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

I got into wheeling options for the first time this year and am extremely happy with the results. As a newcomer, I keep it very simple. I sell csp's on SPY for 2% OTM with 30-day strikes. If assigned, I turn around and sell cc's 2% OTM with 30-day strikes. If those shares are called away, then I go back to step 1.

I'm planning to do this for the rest of my life. But I'd like to hear from more experienced wheelers about the downside. Has anyone here ever used a conservative strategy like this and lost substantial money over the course of a year? If the market crashes, I would expect to have a loss - but I think that steadily collecting premiums would leave me much better off than everyone who just buys and holds. Or am I just being naive?

I'll preface by saying I like TQQQ. I won't mind getting assigned on my CSPs but not at current levels, so trying to earn some premium with CSPs. Been reading a lot here and from what I understand:

- General consensus is to sell 30-45 DTEs as those offer highest theta(right?).
- It's generally recommended to do profit collection while you're ahead and roll further.

Since I'm pretty new to this, I'm seeking advise on anything specific to tqqq with regards to selling CSPs. I'm targeting 15%+ ROI.

I own NVDA stocks. I want to allocate about 10% of them for CC premiums What DTE do you recommend to choose? I looked at $145 strike price for two weeks expiration and it is priced $1.58 Isn’t it a small reward for risking 100 shares? I know I can wheel, but I am afraid of a sudden stock price increases. And if I look 6 weeks out, the premium is $5.68, but the assignment risk is even higher. I understand it is better to sell with a higher Theta before the fast decay kicks in. What is your recommended dates range to sell and to close the position specifically for NVDA? Thanks!

A question, does someone have experience in Rolling a Bull Call Credit Spread when the stock is rising (or Put Credit Spread) and how do you experience it and what do you check for?