Mike Hunt
:
I like your style of buying blocks of options with expirations 3-4 months in the future and cashing out 25% gains. It’s a sound conservative approach to risk management many retail option buyers don’t utilize. Yes you might not have the 300% one day return possibility of options expiring that week Friday, but you also don’t have the strong possibility of 100% loss of your wager you place
M3LANI3
OP
Mike Hunt
:
I learned the hard way - Shopify - I completely boycotted them after a 10k loss on calls expiring within 2 weeks time. - it tanked during that 2 weeks and I lost 10k - NEVER AGAIN. Now I play it safe with companies I know produce - Nke being 1 of them. I really only like to play calls - but in this market I’ve been dabbling with puts - Amazon expiring in august and sept. Apple puts for sept. Both green today - but I’ll hold and see what the rest of the week brings.
Mike Hunt
M3LANI3
OP
:
Hey game respects game. And we are all on the same retail team that has huge disadvantages vis a vis our hedgecunt foes. We need to call out members of the squad doing stuff right.
Mike Hunt
M3LANI3
OP
:
As much as it pains me to say, your approach is very similar to what the institutional side and the hedges do. And the truth is they have a much better approach to playing options than the average retail investor does. The more retail person uses the tactics of the institutional side, the more likely they are to have success.
Mike Hunt
M3LANI3
OP
:
My only suggestion is to try and get comfortable with puts as well, especially in a bear market. If you don’t have the ability to capitalize on movements in both directions, you are only grazing on half the pasture. And even if you are only buying calls, it’s always a good idea to hedge your bet with a couple of cheap way out of the money puts. It makes plays like your Shopify experience sting much less. Even if it’s only 5%. Say you have 1000 bucks in calls. Spend 50 bucks on some way OTM puts just incase it completely tanks.
M3LANI3
OP
Mike Hunt
:
It’s funny - I see comments all the time “man I pulled out too early - I could have made so much more” - I never cry about the money I could have made on a play because I pulled out once I reached the set amount I wanted - But I would cry for losing money just because I was being greedy
SpyderCall : nice gains there. I love options gains.
M3LANI3 OP SpyderCall : So do I ;)
Mike Hunt : You could buy some nice sneakers with that cash
Mike Hunt : I like your style of buying blocks of options with expirations 3-4 months in the future and cashing out 25% gains. It’s a sound conservative approach to risk management many retail option buyers don’t utilize. Yes you might not have the 300% one day return possibility of options expiring that week Friday, but you also don’t have the strong possibility of 100% loss of your wager you place
M3LANI3 OP Mike Hunt : I learned the hard way - Shopify - I completely boycotted them after a 10k loss on calls expiring within 2 weeks time. - it tanked during that 2 weeks and I lost 10k - NEVER AGAIN. Now I play it safe with companies I know produce - Nke being 1 of them. I really only like to play calls - but in this market I’ve been dabbling with puts - Amazon expiring in august and sept. Apple puts for sept. Both green today - but I’ll hold and see what the rest of the week brings.
Thanks for the comment! It made my day!
Mike Hunt M3LANI3 OP : Hey game respects game. And we are all on the same retail team that has huge disadvantages vis a vis our hedgecunt foes. We need to call out members of the squad doing stuff right.
Mike Hunt M3LANI3 OP : As much as it pains me to say, your approach is very similar to what the institutional side and the hedges do. And the truth is they have a much better approach to playing options than the average retail investor does. The more retail person uses the tactics of the institutional side, the more likely they are to have success.
Mike Hunt M3LANI3 OP : My only suggestion is to try and get comfortable with puts as well, especially in a bear market. If you don’t have the ability to capitalize on movements in both directions, you are only grazing on half the pasture. And even if you are only buying calls, it’s always a good idea to hedge your bet with a couple of cheap way out of the money puts. It makes plays like your Shopify experience sting much less. Even if it’s only 5%. Say you have 1000 bucks in calls. Spend 50 bucks on some way OTM puts just incase it completely tanks.
M3LANI3 OP Mike Hunt : It’s funny - I see comments all the time “man I pulled out too early - I could have made so much more” - I never cry about the money I could have made on a play because I pulled out once I reached the set amount I wanted - But I would cry for losing money just because I was being greedy
M3LANI3 OP Mike Hunt : Thanks! Definitely will!