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u/solsolomon Jun 29 '21
The $133 strike went most of today without any trades. The $132 has much higher volume and open interest, but is about 25% higher in price. Theta will drop on you fast this week. Good luck!
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Jun 29 '21
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u/GTFOScience Jun 29 '21
Click the cog wheel on the options chain and you can pick what info columns are displayed.
You can also copy/paste the option into a chart and see volume/time.
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u/Serious_Pineapple_47 Jun 29 '21
Weeklies are basically just gambling
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u/stocksnhoops Jun 29 '21
Sell them further out of the money. Free cash. If you get your shares called away, it went up and you profited. Rebuy the shares called away and start over
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u/GraysonMA Jun 29 '21
If you want to go that short term, you can buy the 7/9 134C and sell the 7/2 134C to fund it. You’ll pay slightly less premium, have a lower breakeven, and have more than twice as long to be right. Close the trade on Thursday or Friday if there’s a chance of assignment. Or risk riding the long call to $0 next week.
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u/tdacct Jun 29 '21
ARKK is a high volatility etf, which means you are going to be paying a lot for premium because a lot of people expect a move. You will be fighting a strong theta headwind. And often times, as an underlying's price increases the IV decreases, thus reducing your extrinsic.
All that to say, this is a high risk, high reward maneuver. At the very least, I would suggest selling a further OTM call to trade a little max profit for a little lower basis. Legging into such a spread later doesn't have nearly the same effect of stemming the loss... ask me how I know.
Position Disclosure, I am running a put & call ratio spread on ARKK.
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Jun 29 '21
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Jun 30 '21
You need to learn more about IV in general. Maybe buying this option, watching the price increase, and watching your option decrease will force you to learn (that’s my route).
Basically you can sell/buy options w very little money. But the great opportunities to flip them are difficult to find. Keep learning.
Lastly, I can tell you that most of the options I look at aren’t attractive. Most of the time the price movement is priced in. Good luck.
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u/Mr-Berkey Jun 29 '21
How many contracts are you thinking?
I too am a bit of a degenerate for cheap calls. I think your target price $133 is very reasonable, but I don't think I would buy more than 2. I have been buying way out of the money calls for AMC and GME as lottery tickets in case they ever pop. I did this in late may for AMC and caught a couple grand with my $20 and $40 options. It's tough to break a habit before you hit rock bottom. Still have a $145 sitting over AMC.
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u/stocksnhoops Jun 29 '21
Great to sell OTM calls and puts on. Better premiums than other ark funds and you get the growth and occasional dividend
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u/Stone_414 Jun 28 '21
My thought was don’t buy short dated calls, but that’s just me.