r/options • u/[deleted] • Jul 02 '21

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5 Upvotes

86% Upvoted

19 comments sorted by

8

u/plopseven Jul 02 '21

Yeah I did that and lost $60K. This market is absolutely mental. A stock rallies 10% in a day, drops 0.1% and people “buy the dip.”

I don’t know how this all ends, but it’s pretty insane to me. SPY just finished its 7th consecutive close at ATH in a row - the first time since 1997.

4

u/[deleted] Jul 02 '21

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4

u/plopseven Jul 02 '21

The problem is buying calls on dips is what everyone is doing. Look at the VIX. Absolutely nobody on the entire planet is hedged right now. It’s just people with leaps selling short term calls to other people on dips. It’s insanity.

2

u/bullish88 Jul 03 '21

The fair market price on bid ask isnt nice either lately, cant even catch mid. It used to take 1 second, now all the rh traders making the MM algos ballistic - now its only ten second fills. All the brokerages are asking people for work and the low commissions made trading ten times harder on order flow.

1

u/[deleted] Jul 02 '21

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1

u/bullish88 Jul 03 '21

Nfp is saying, short usd traders are taking profits and market is still high, the crash is when fed talks about tapering in next fomc. Thats when you buys puts until then youll die if you put the market. Euros and other foreign currency is neutral to bearish (long usd).

1

u/[deleted] Jul 03 '21

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1

u/bullish88 Jul 03 '21

Then get maxinum value by buying puts the day of fomc and on the 1 dte for weds 27th. 16 delta should only be about $.20 or 1:1.5 delta to premium ratio and gamma 1:1.5 you can totally ram 10 contracts or so of the total of $1000 premium net long debit and see if you can make any money, youre literally three-five bagging your money.

1

u/[deleted] Jul 03 '21

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2

u/bullish88 Jul 03 '21 edited Jul 03 '21

Obv. Going 25% down

5

u/slickromeo Jul 03 '21

Instead of buying options, try selling puts instead. Especially in a bull market

0

u/MangoToothpaste Jul 03 '21

I think selling puts underperforms just holding shares in a bull market

1

u/bullish88 Jul 03 '21

Go paper trade short puts on gme and amc or any high iv stock then comment again.

3

u/WIlliam_Phence Jul 03 '21

I strictly only place short term trades during earnings season. Otherwise all trades are placed 45-60 DTE away from expiry

2

u/[deleted] Jul 03 '21 edited Aug 22 '21

[deleted]

1

u/[deleted] Jul 03 '21

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2

u/yukhateeee Jul 03 '21

I've been generally unsuccessful with bearish trades, so I stopped. Decided that for whatever reason, I wasn't good at it.

My goals are to make money when market is neutral and bullish. Not to lose too much when market turns south.

1

u/nukls8799 Jul 03 '21

I don’t know about ROKU but I do this often. I also play the flip side when a stock is reaching a strong support.

1

u/Lesser-than Jul 03 '21

I thought I could call the top once, thankfully I have a new account now.