To The Moon

I was searching through Google & happen to see this.. Someone actually asked whether Theta gets affected after the weekend.. And there was this nice reply with a diagram to show an example & that's so helpful!  So the answer is "yes, Theta is paid over the weekend". Those who buy options & worrying time decay etc. like me over weekends/public holidays, hope this puts your mind at ease..[Tongue]  

$Meta Platforms, Inc.(META)$ - I sold META puts a couple days ago. Although I believe META can rebound in the future, the capital used to take on those put positions will likely be tied up for at least 3 months. As someone who tries to unite theory and practice, I didn't really feel like talking much tonight and wanted to remain quiet.Despite lacking energy, I still need to maintain daily observations. An interesting question arises - after an earnings release, will market makers start killing off option positions?Call options will undoubtedly get crushed. For META's put options this week, the 450, 470, 440, 400, 480 strikes have the highest open interest. Looking at the intraday movements, although market makers can't control everything, they sti

$NVIDIA Corp(NVDA)$ failed to withstand the squeeze pressure and plunged towards $800. The overall market had a significant number of options expiring on April 19th, with a heavy tilt towards puts, creating a resonance effect. As my friend said, it seems like we have an "option expiration day" every month now.Despite our thorough analysis this week, our optimism was a bit excessive. However, the silver lining is that after experiencing this minor squeeze, we'll be more cautious when we encounter similar option expiration setups in the future.Although NVIDIA's stock price took a substantial hit, there's some good news. After this Friday, the massive number of put options expiring on April 19th will be cleared, leading to a cliff-like decrease in NV

not selling puts at support... then stock fall further and you miss out on either higher premiums or hit strike price.  be patient, and wait. when there's no trade set up, don't trade

I have spent over six months getting an understanding of options, very much still a novice. but lastweek made the plunge from demo to real. Puts, no thanks you can loose your shirt. I'm just into long calls like 2026 calls. And just stocks I really understand. Obviously im not here to give advice, just getting an understanding, acting on it in a very small way and seeing how it goes

This is tough, I don't understand it 

I have been bullish on the homebuilders sector since last year. We have seen a nice run, with the $SPDR S&P Homebuilders ETF(XHB)$ up over 30% since I first mentioned it last November. I have been profitting from this ETF by selling cash secured puts. However, recently there has been a selloff and my most recent trade ended up with a -5% loss. XHB Put Chart I decided to get out of the trade as it was not able reclaim a previous resistance. This is to prevent getting caught in a potential downturn which eventually happened. Exiting a cash-secured put position at a loss demonstrates a disciplined approach to risk management. Cash-secured puts offer the potential for generating income while providing downside protection, but they can turn negati

haven't got the courage to dabble into options trading. need a mentor, any volunteer?

One common pitfall I've experienced is not understanding the special mechanics of options. As a seller, if the margin is insufficient, the contract might be forcefully liquidated due to market volatility, leading to huge losses.As a buyer, another easy pitfall is overlooking the time value. As time passes, the value of options decreases. If buyers do not close out-of-the-money options in a timely manner, they will expire worthless.Emotional trading is not only prevalent in options but also in the stock market. As the meme below humorously suggests, trading options after drinking alcohol will likely lead to losses.Share the pitfalls in options trading in the comments section to win tiger coins~

For beginners in options trading, there's a common belief: if your options are profitable, you either close the position or wait until expiration to exercise them. Early exercise, they think, is a waste of the option's time value. However, there are situations where exercising early is probably the smarter move. When is early exercise a wise choice? Firstly, consider a scenario where the price of the underlying stock has surged, making a call option deeply in-the-money (or, conversely, a put option in the case of a significant drop in stock price). While this is great news, deeply in-the-money options often suffer from poor liquidity. If you decide to secure your profits, you might find the bid-ask spread eats into your gains due to this lack of liquidity. Exercising the option early can b

I was searching through Google & happen to see this.. Someone actually asked whether Theta gets affected after the weekend.. And there was this nice reply with a diagram to show an example & that's so helpful!  So the answer is "yes, Theta is paid over the weekend". Those who buy options & worrying time decay etc. like me over weekends/public holidays, hope this puts your mind at ease..[Tongue]  

$Meta Platforms, Inc.(META)$ - I sold META puts a couple days ago. Although I believe META can rebound in the future, the capital used to take on those put positions will likely be tied up for at least 3 months. As someone who tries to unite theory and practice, I didn't really feel like talking much tonight and wanted to remain quiet.Despite lacking energy, I still need to maintain daily observations. An interesting question arises - after an earnings release, will market makers start killing off option positions?Call options will undoubtedly get crushed. For META's put options this week, the 450, 470, 440, 400, 480 strikes have the highest open interest. Looking at the intraday movements, although market makers can't control everything, they sti

For beginners in options trading, there's a common belief: if your options are profitable, you either close the position or wait until expiration to exercise them. Early exercise, they think, is a waste of the option's time value. However, there are situations where exercising early is probably the smarter move. When is early exercise a wise choice? Firstly, consider a scenario where the price of the underlying stock has surged, making a call option deeply in-the-money (or, conversely, a put option in the case of a significant drop in stock price). While this is great news, deeply in-the-money options often suffer from poor liquidity. If you decide to secure your profits, you might find the bid-ask spread eats into your gains due to this lack of liquidity. Exercising the option early can b

$NVIDIA Corp(NVDA)$ failed to withstand the squeeze pressure and plunged towards $800. The overall market had a significant number of options expiring on April 19th, with a heavy tilt towards puts, creating a resonance effect. As my friend said, it seems like we have an "option expiration day" every month now.Despite our thorough analysis this week, our optimism was a bit excessive. However, the silver lining is that after experiencing this minor squeeze, we'll be more cautious when we encounter similar option expiration setups in the future.Although NVIDIA's stock price took a substantial hit, there's some good news. After this Friday, the massive number of put options expiring on April 19th will be cleared, leading to a cliff-like decrease in NV

I have been bullish on the homebuilders sector since last year. We have seen a nice run, with the $SPDR S&P Homebuilders ETF(XHB)$ up over 30% since I first mentioned it last November. I have been profitting from this ETF by selling cash secured puts. However, recently there has been a selloff and my most recent trade ended up with a -5% loss. XHB Put Chart I decided to get out of the trade as it was not able reclaim a previous resistance. This is to prevent getting caught in a potential downturn which eventually happened. Exiting a cash-secured put position at a loss demonstrates a disciplined approach to risk management. Cash-secured puts offer the potential for generating income while providing downside protection, but they can turn negati

One common pitfall I've experienced is not understanding the special mechanics of options. As a seller, if the margin is insufficient, the contract might be forcefully liquidated due to market volatility, leading to huge losses.As a buyer, another easy pitfall is overlooking the time value. As time passes, the value of options decreases. If buyers do not close out-of-the-money options in a timely manner, they will expire worthless.Emotional trading is not only prevalent in options but also in the stock market. As the meme below humorously suggests, trading options after drinking alcohol will likely lead to losses.Share the pitfalls in options trading in the comments section to win tiger coins~

I have spent over six months getting an understanding of options, very much still a novice. but lastweek made the plunge from demo to real. Puts, no thanks you can loose your shirt. I'm just into long calls like 2026 calls. And just stocks I really understand. Obviously im not here to give advice, just getting an understanding, acting on it in a very small way and seeing how it goes

not selling puts at support... then stock fall further and you miss out on either higher premiums or hit strike price.  be patient, and wait. when there's no trade set up, don't trade

haven't got the courage to dabble into options trading. need a mentor, any volunteer?

This is tough, I don't understand it