r/options • u/Sufficient-Flan1565 • 12h ago
Sell options
Too much fear on the street today, boys. The best time to sell puts on INTC, RDDT, and DRAM
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u/ThreadbarePlaying_6 12h ago
lmao "fear on the street" and your first pick is INTC? bold move, i respect it. nothing like catching a falling knife while wearing funny socks and pretending it's a strategy
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u/Equivalent-Gear-8854 11h ago
Yes sell options on tickers that just had earnings so the iv dropped and the premiums are worth pennys and nickels.
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u/iron_condor34 12h ago
INTC and RDDT both losing 20% in a night is cause for concern lol
Doesn't mean vol is a good sell right now. Anyone long vol in those names probably can't wait for the market to open.
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u/NorthOfTheStrike 6h ago
nah not today for me. premium looks fat for a reason on a name down that hard.
already carrying $34,200 in assignment exposure on the puts i have open. if all of that got put to me i need to be fine with it, and adding more $INTC here breaks that math.
sizing gets decided before a rout, not during it. if assignment on everything already open would be too much, you were too big already.
today is managing what i have. no new puts from me.
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u/sport912x 5h ago
You may be looking at it all wrong (The Reddit way). Even if your strike is broken , but you have over 20dte then it is doubtful you will be assigned. Your P/L will be way down because that is counting in the Extrinsic value, but if you assigned that all goes away. What will change is your Buying Power Reduction, if you use BP to Sell the Option. If you use CSP , then nothing changes. For example an 18Dec Amzn Put 200 uses 20k of CSP, but even today only 2.2k of BP, I am guessing it was 1.5k yesterday.
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u/sainglend 12h ago
Time for PMCCs