Anybody has a good approach to calculate risk adjusted returns on premium selling? For example Sharpe ratio needs standard deviation of returns, not sure where to get those from.
Or calmar ratio with average annual rate of return for some period divided by the maximum drawdown for that period. What would be the drawdown, mark to market? Or whole portfolio when positions close with negative PnL?
All neutral (no direction choice) request for a trade on the app, all September options. Winner if green next few days after earnings. Few were down but quickly recovered. I did this tracking manually, will have a page on the app to track stats.
I had positions on some of these names.
Selling premium is pretty amazing way to invest. You sell it, nothing happens, nothing happens forever and then boom winners here and there.
My 130 put I sold for 8.7
down $5
and it went to 125 overnight
Ugh
Is anybody selling any fat calls for this expiration? I had some in BE and NBIS and they worked obviously great.
SKHY are really fat but couldn't generate trades yet, some missing IV data
Wanted to sell amazon's 280 but chickened out last moment. Sold some in SOFI, HOOD
AMD still looks good, I think but too capital intensive. The rest of ram and chips went down so fast I'm kinda hesitant to touch call on them. Need something to reduce delta though.
Is it a feature or a bug? It can’t imagine what VW managed to put in there to generate so much heat it radiates in driver’s face.
Make long rides rather annoying.
Anybody else noticed this genius German engineering or who ever they outsourced it? Or it’s straight broken?
PS didn't make it clear, sorry. I was talking about steering-column-mounted digital instrument cluster thingy.
It started here https://www.reddit.com/r/options/comments/1ucpztc/considering_spcx_130_put_sale/
Sold 130 for 10 and bought back 7 days later for 4
Puts climbed again, so risks/reward became good.
Got a fill for $8.7 🤞
Note how well-behaved the app is. It doesn't pressure users to trade.
I created this trade idea and it's been sitting there for 5 days. Last week I decided to sell calls on tech flyers instead. Some of those getting closed and since SpaceX is "crashing" - I think this is a good opportunity to sell put.
2021 id.4
I thought it was going to take maybe 1 call and they will reset it. Well, after five calls and two incredibly rude reps, I’m stuck with it
Support and the dealer basically played ping pong.
So I need to call some special number and day magic combination of words?
I already tried
Primary user
Previous owner
Factory reset is blocked because of primary user
They just seem not wanting to deal with it 😃
Have you seen MS announcement? I’ve looked at their landing website. It looks like a total AI slop
Would the be able to compete on any level except technical?
Trade idea in NBIS collecting premium from an expensive call sale
I got deltas positive again with the market softening so was looking to reduce it. NBIS calls looked very expensive, decided to sell 290 call in August.
Below is agent's reasoning. I kinda agree with it. There is a risk because of earning event.
Still, 30 delta call with 40% above the current price, with fat estimated return on capital is a good bet. I put an offer at 16.3
I would sell the 290 call. IV rank at 95.83% and IV percentile at 99.63% drove the decision, since options price at the top of the one-year volatility range.
The 290 call fits the negative view without taking the highest delta on the board. I selected the farthest listed call because it cuts price sensitivity while the premium remains worth selling. No completed trade history surfaced, so this trade stands on current pricing.
The risks come from liquidity and event timing. Options liquidity rates as tradeable but not deep. Earnings fall in 34 days inside the contract life. The 290 strike is below the 52-week high of $299.86, so the naked call still carries real upside exposure.
Upd: filled at 16.3
Should I just leave it or try to remove it?
Not sure how they going to assess it since this is not OEM.
We’ve decided to buy used one, replaced leased 2023 Ioniq 5
2021 id.4 25k miles 18k + tax
But with this price the title is lemon, unfortunately
I was surprised VW dealer couldn’t find any disclosures what happened.
Surprised how much more solid it feels that Ioniq. After 2.5 years Ioniq became noticeably wobbly. Interesting how Asian manufacturers never achieved the same stiffness of frame.
Charged showed bit over 200 miles at 93%
Should be enough for us.
Are there any special maintenance to do?
I've been suffering from this manual numbers checking and table scanning for a while.
What do I trade? How liquid are the options? Will I be able to easily get out? What's the volatility in the name?
Finally, finally I got this data organized. Above is my typical workflow, recorded it.
"I have some capital to deploy. What's the liquid names with high implied volatility and not very capital intensive?"
5 seconds and they listed! A super cool feature.
By the way.
Liquidity of options is probably the most important metric after volatility.
And it is not trivial to calculate it!
Most places or brokerages I look may have it in as basic grades. Which doesn't really answer question how easy is it to get in and get out of a trade. One I implemented is actually calculates spread with various
130 put pay $8 premium, even though IV deflated where it was. Stock is 15 bucks from the IPO price, might just wait till it gets there.
The IV metrics still not very clean, since options trading only a few days, there is no history. I mean the options are still expensive, and skew is probably huge. But it's not clear how expensive on relative basis.
PS waited till the end of the day and pulled the trigger. filled at 10.30
I hate this trade :)
But ten buck of premium is ten buck
Was looking for a bit of delta reduction and found this puppy for a short call trade.
Below is the full machine reasoning.
The app doesn't recognize yet the unusual combinations of IV indicators. In this case, IV rank is pretty low but IV is pretty high. Hence the return on capital is higher than usual, normally I'd get 5-10% for cash secured premium trades.
My take: the iv stayed consistently elevated in this name for a long period of time. And IV rank became rather low. Stock kept grinding up, but without explosive moves. Realized volatility stayed close to IV and the IV is not actually that overpriced.
If anybody can explain this IVs/HV relation better, I'd be grateful!
Machine reasoning:
Sell the 33 call for July. The 30-delta contract keeps the strike above the 52-week high at $29.30 and avoids the higher sensitivity in the 31 and 32 calls.
The idea matches the negative view without forcing duration. The 30-day cycle gives better return quality than the 65-day call, and the option keeps a strong probability for half profit. No prior completed trades were available for this name.
Risk comes from liquidity and volatility context. The liquidity rank is weak at 17.81, even though the platform rating is tradable. IV rank at 28.3 is acceptable, while IV percentile at 14.16 says current IV is low versus its own year. The absolute option IV near 90% keeps the premium usable, so I would take the trade with that liquidity caution
I saw a post somebody buying options in NASA ETF as a play for SpaceX IPO.
I think the whole musk-space thingy is so hyped they going to whack retail crowd that bought calls on every proxy name. But I'm not going to pretend I know how the market going to behave.
I think a better play is IV. It is so elevated it makes sense to sell premium, PUTs specifically. A bit of long bias, and the play IV in these names will crash after IPO.
I've dug three liquid proxies: NASA, RKLB, ASTS
I like the most NASA, mostly because it requires least capital. All trades below for CSPs.
NASA
Sell the 27 put for NASA in July. Collect $1.45 premium. Requires $2,700 collateral. Has 38 days to expiration.
Price 1.45
Delta -0.25
Theta -3.53
RoC 12 (estimated annualized return on capital)
P50 81 (estimated probability of 50% profit)
Margin 2700
Days to P50 9 (estimated days to reach P50)
Reasoning I got from the app I'm using:
Sell the 27 put. Elevated relative volatility drove the decision, with current option volatility high enough to pay for a farther out-of-the-money strike.
The trade keeps the short side on the put side rather than the naked call. The stock trades in the lower half of its 52-week range, and the 27 put gives room below the current price while still paying a usable credit for a cash IRA.
Risk comes from only adequate options liquidity. The volatility setup helps, but fills may need discipline. No completed prior trades came back for comparison, so the decision rests on current pricing and liquidity. Show less
The other two have similar metrics, and they going down so premiums are even richer and stricter can move further out.
ASTS had the highest RoC, 22% - I usually get 4-6% range but IV is so rich, that returns in cash secured account looks like trading with T-Margin
ASTS
Sell 90 put for ASTS in July. Collect $11.15 premium. Requires $9,000 collateral. Has 38 days to expiration.
RKLB
Sell the 100 put for RKLB in July. Collect $8.11 premium. Requires $10,000 collateral. Has 38 days to expiration.
PS
I just got NASA order filled at $1.70, oh well that was a very fast fill with a price better than nat.
Found ARCC with descent IV, good dividend and ok liquidity.
Sold 18 put for in July for 0.35
39 days to expiration.
Delta -0.22
Theta -0.69
RoC 5 (estimated yearly return)
P50 88 (estimated probability for half of profit)
Days to P50 9 (estimated days to 50% profit)
This is the reasoning from the automated trade platform
Open the 18 put. Elevated relative volatility drove the decision, with IV rank at 56% and the July chain priced above recent realized volatility.
The put matches the positive view without using a naked call against the stock. The premium pays enough for a cash-secured IRA trade, and the half-profit estimate favors an early exit window rather than a long hold.
Risks center on price location and correlation. The stock trades at $18.77 inside a $17.40 to $23.42 yearly range, closer to the lower end, and correlation to SPY is 0.85. Liquidity does not block the trade. The 10.2% dividend yield helps the short-put setup, and puts carry no dividend assignment risk
All checks out, I think it's a descent trade. Thoughts?
