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r/SharedOptionIdeas

▲ 12 r/SharedOptionIdeas+1 crossposts

If You're New to Trading, Stop Looking for the "Perfect Strategy"

One thing I wish someone told me earlier:

Don't spend months searching for the "holy grail" strategy.

A simple strategy that you actually follow is better than a complicated one you keep changing every week.

Learn one setup, manage your risk, and track your trades. Consistency beats constantly chasing the next indicator**.**
What's one lesson you wish you had learned when you first started trading?

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u/Round-Guarantee-180 — 4 days ago
▲ 2 r/SharedOptionIdeas+1 crossposts

Robinhood Put Options

Hello, I am new to options and realized for Put orders on Robinhood they require you to have double amount for a put order? I use margin to buy options and wanted to collect prwmiums using CC or buying putsm but while buying puts i realised that they require you to have double amount than option cost? Can somebody please tell me if thats the case for all the brokers?

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u/Chikno420 — 5 days ago
▲ 21 r/SharedOptionIdeas+1 crossposts

Do you ever sell covered calls below your cost basis when you’ve lost confidence in the stock?

My current total return on this position is 19%, and I’m looking at covered calls with strikes below my adjusted cost basis.

The tradeoff in the screenshot is pretty clear:

  • If the call expires worthless, the added premium keeps my total return around 19.8%–20.1%.
  • If the stock rallies and the shares are called away, my final return drops as I choose a lower strike—from about 18.7% at the $87 strike down to 12.2% at the $81 strike.
  • Some of the lower strikes offer more premium, but I would be giving up more recovery upside and potentially exiting the shares below my basis.

If I don’t expect the stock to recover to my cost basis anytime soon but if it unexpectedly rallies and I’m assigned, I still exit with an overall profit—just a smaller one than I currently have.

Is this a reasonable way to manage an underwater position?

At what point does collecting premium become more important than protecting the return you would have if the shares were called away?

u/BaseballEven6245 — 13 days ago
▲ 17 r/SharedOptionIdeas+1 crossposts

Trader’s Best Feeling Ever

The best feeling as a trader is creating your own profitable strategy by modifying and improving concepts from other strategies while developing your own understanding of market logic.

Once you create your own framework and terminology, the process of backtesting becomes more meaningful because you are learning from your own decisions and mistakes.

Remember, not every loss means your strategy is wrong. Some losses are simply a result of probability and market conditions. The key is to analyze each trade, identify whether the mistake came from the strategy or execution, and continue improving until you understand your edge.

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u/Vegetable-Ad1512 — 14 days ago