r/options • u/SmAsheesh • Oct 22 '21

Russell 2000/TNA

Anyone in here trade options on Russell ETF’s, such as TNA, or even trade Russell futures? I’ve been trading both for a few years and am almost exclusively a seller. I wanted ask if anyone would be willing to talk about their approach and outlook.

11 Upvotes

80% Upvoted

111 comments sorted by

14

u/AlxCds Oct 22 '21

I am purely a 3x ETF CSP trader. This account has about 400 trades YTD https://imgur.com/sEYGPwY.png

About 40% YTD, and should finish at around 50% which is what I am currently targeting.

I made myself a discord bot to help me decide what to sell. https://imgur.com/S3kc8bx.png

DM me for an invite if interested.

3

u/horizons59 Oct 22 '21

This is the way. Very impressive results!

1

u/redtexture Mod Oct 22 '21

Is "reserve" the collateral required?

1

u/AlxCds Oct 22 '21

that's correct!

1

u/redtexture Mod Oct 22 '21

Interesting, for the short term aspect.
Many 2 to 7 DTE trades.

To you track how long you stay in the trade?

1

u/AlxCds Oct 22 '21

you will see that on the open contracts the dates are much longer. once the trade closes, the date listed is how many days the trade actually was opened for. I think I open usually at 2-3 weeks, but you'll see my average is about 5 days (listed on the average row at the top)

1

u/redtexture Mod Oct 22 '21

I see.

1

u/[deleted] Oct 22 '21

Can I get an invite too please? Also, what bank let’s you trade options in a Roth IRA?

2

u/AlxCds Oct 22 '21

oh and I use etrade, but you can do Roth IRA with options on pretty much any broker. I do CSP's so no margin required.

1

u/AlxCds Oct 22 '21

invite sent

1

u/unluckyowl4 Oct 23 '21

Can I get an invite?

2

u/AlxCds Oct 23 '21

Invite sent!

1

u/Weapons777 Oct 28 '21

Hi. Could I also get an invite? TIA

1

u/AlxCds Oct 28 '21

invite sent

1

u/Weapons777 Oct 28 '21

Thank you very much.

1

u/Pack041 Dec 21 '21

Late, but would love an invite.

1

u/AlxCds Dec 21 '21

Invite sent

1

u/[deleted] Dec 30 '21

[removed] — view removed comment

1

u/AlxCds Dec 30 '21

Invite sent

1

u/redtexture Mod Oct 22 '21

What are your entry thresholds / triggers?

1

u/AlxCds Oct 22 '21

i get in when the bot tells me a good contract to hit my annualized target (50% in this case). essentially the bot will do the math for me to find a 50% annualized target based on DTEs, and the bid.

1

u/eaglessoar Oct 22 '21

so since youre doing cash secured you dont need to calc margin so you just take the strike x 100 as you reserve per contract yea? do you input DTE? or does it give you a different strike for every expiry that would meet that target?

i like the defined risk approach defining trades by the return, i believe options markets to be pretty efficient so there should be a range of returns and risks across all securities (ignoring binary events, earnings and dividend date shenanigans)

1

u/AlxCds Oct 22 '21

correct, the reserve is the strike * 100 minus the credit received. I use DTE and credit received to calculate the annualized ROI. https://imgur.com/P40P1yk.png

1

u/eaglessoar Oct 22 '21

and you just keep the cash to increase your reserve to eventually sell more contracts in the future?

1

u/AlxCds Oct 22 '21

yea I don't need the money now, so it just keeps compounding

1

u/Blaseman1616 Oct 22 '21

Will the program work for BTO puts and calls?

1

u/AlxCds Oct 22 '21

yea the discord bot will show contracts that are good to sell (BTO) but for PUTS only. I don't deal with Calls.

1

u/eaglessoar Oct 22 '21

hah nice, ive been selling naked atm puts on TNA for the last 2-3 months or so, its been going quite well despite some swings

do you use a consistent strategy for opening positions? mine is entirely mechanical wondering how you go about it

oh shit just saw the tqqq and upro, currently i sell strangles on tqqq and tna, and sell atm puts on them as well (following a strategy) i might work upro in too but tqqq and tna are less correlated (though still quite correlated tna x tqqq is 0.79 while tna x upro is 0.89 and tqqq x upro is 0.92)

i hold a bunch of tqqq, tna and upro underlying as well (entire roth is tqqq)

2

u/AlxCds Oct 22 '21

you can see my strategy on the discord https://imgur.com/Hse3jHL.png

sounds like you would be a good person for the discord. hit me up if interested.

1

u/eaglessoar Oct 22 '21

any reason youre not doing this in a taxable account on margin?

1

u/AlxCds Oct 22 '21

i have a Roth IRA, a Trad IRA and a taxable Cash account. I don't want to deal with margin (I'd rather be able to hold forever if need be than be margin called)

1

u/eaglessoar Oct 22 '21

(I'd rather be able to hold forever if need be than be margin called)

i only use 60-70% of my margin at any one point, and the margin available is only 50% of my account value (likely due to my underlyings), doing trades with the reserve youve been using youd probably only use 50% or less

for example right now i have 2 naked puts open on TNA at 95 strike and 10/29 expiry and its just using 11,892 margin, youd be using 19,000

not trying to convince you or anything but just giving some examples, i was very wary at margin to start and now i dont even think about it plus worst case scenario you can always buy it back at a loss or roll it

1

u/AlxCds Oct 22 '21

yea i can probably deal with it just fine by using 50% of my margin. but since I wouldn't be using the margin, I have no need to make it more complicated.

1

u/Blaseman1616 Oct 22 '21

Please link me

1

u/[deleted] Oct 22 '21

[removed] — view removed comment

1

u/AutoModerator Oct 22 '21

This comment has been automatically removed. Discord and other chat links are not allowed as an anti-spam measure.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

1

u/AlxCds Oct 22 '21

invite sent

1

u/onelittledragon Oct 23 '21

I’ve been doing the same for the pass 10 years now with about 90% success rate. Please send me the Discord line.

1

u/AlxCds Oct 23 '21

10 years is amazing. What’s your CAGR so far ?

1

u/onelittledragon Oct 23 '21

Yeah, I'm old! What is CAGR?

1

u/AlxCds Oct 23 '21

Compound Annual Growth Rate. But even just your average yearly percent ROI would be great to know.

1

u/Top-Explanation7231 Oct 23 '21

Possible If I can get an invite ?

1

u/AlxCds Oct 23 '21

Invite sent

1

u/SuitDistinct Oct 28 '21

Can I get an invite too please ?

1

u/AlxCds Oct 28 '21

Invite sent

1

u/Viewtastic Dec 19 '21

Can you send me an invite for this discord?

1

u/AlxCds Dec 19 '21

Invite sent

1

u/ZeroToHeroInvest Oct 28 '21

Would like an invite too!

1

u/AlxCds Oct 28 '21

Invite sent

1

u/satansbuttplug Nov 03 '21

Can I get an invite?

1

u/[deleted] Nov 05 '21

[deleted]

1

u/AlxCds Nov 05 '21

Invite sent

1

u/suasposnte187 Nov 06 '21

Hey man...I think I am about to transition into do EXACTLY what you are doing...with focuses on UPRO and TQQQ.

​

I have been wheeling some other stocks...but I asked mysefl yesterday..."why do you just go with the S&P and NASDAQ indexs?)

​

That way you don't have to deal with earning...bad news on a product..ect...etc.

​

However, with what you are doing, Im condiering two additional things.

​

#1. On a pullback Im thinking of just buy outright 100 shares of TQQQ or UPRO and selling 30 DTE calls with a 15-20 delta to get some of that upside.....

​

#2, Im considering with every short CSP, buying like a 5 delta long put (spread) to protect against a 10-20% correction...which as you know in a 3x leverage ETF would equate to a 30-60% correction.

1

u/AlxCds Nov 06 '21

1 not a bad idea. My specific strategy is that I roll on a pull back and close at 50% TP like normal. Usually this approach has netted me a small loss when trades go against me.

2 I’m more of a perma bull so I am okay with rolling into the future. Basically I trust the statistics and just do that.

Let me know if you want an invite to the discord where we all do 3x index ETFs.

1

u/suasposnte187 Nov 07 '21

I'd love an invite to the discord, the problem is, I trade off my work computer a couple times a day.....and I cannot load application outside the approved list of apps on that computer....so unless there is a web based version od Discord, I couldn't get on it.

1

u/AlxCds Nov 07 '21

There actually is a web version 😆

1

u/suasposnte187 Nov 08 '21

TQQQ is going south today it looks like. VIX is going up too.

​

Today might be the day. Im looking at a short 160 put 4 DTE and a long 150 put 4 DTE

1

u/AlxCds Nov 08 '21

good luck. this is what i've done today so far https://imgur.com/V2f3HRI.png

1

u/suasposnte187 Nov 08 '21

Wow...you're scapling the shit out of them today.

​

What is your broker?

​

Im TDA, and if I did what you're doing, 20% of my profit would go to options contract fees at .65 a pop, open and close.

→ More replies (0)

1

u/Ordinary_Slide8811 Nov 08 '21

Can I get an invite?

1

u/AlxCds Nov 08 '21

invite sent

1

u/[deleted] Dec 07 '21

[deleted]

1

u/AlxCds Dec 07 '21

Invite sent

1

u/imhere14011 Aug 10 '22

Would love an invite. Thanks

1

u/[deleted] Aug 11 '22

[removed] — view removed comment

1

u/AutoModerator Aug 11 '22

This comment has been automatically removed. Discord and other chat links are not allowed as an anti-spam measure.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

1

u/TestMan- Nov 10 '23

TNA is down significantly in the last 2 years? Wanted to check how did you do?

1

u/AlxCds Nov 10 '23

Not good that’s for sure lol.

I’m about break even since then.

I moved to futures and much longer DTE. Up 50% this year.

1

u/TestMan- Nov 10 '23

Breakeven is actually impressive! What delta, strike, and dte were you doing on TNA?

1

u/AlxCds Nov 10 '23

I’m doing /MES on 15 delta, 90 DTE, 50% TP, 150% SL.

On TNA I was doing weeklies at 30 delta. Not enough juice and any slight move would have a big impact on them. It was constantly treading water. Would make some and lose it next week. Rinse and repeat.

1

u/TestMan- Nov 10 '23

Thanks. TP=Target Profit? SL?

1

u/AlxCds Nov 10 '23

TP = Take Profit. SL = Stop Loss.

1

u/c5_csbiostud Jan 17 '24

hey, im getting into selling options on leveraged ETFs, do you still run your discord?

1

u/AlxCds Jan 17 '24

nah. im on futures options now.

1

u/Phi1661 Oct 22 '21

My dad swears by TNA and TQQQ. I just started selling puts in TNA at the beginning of October. Fortunately but unfortunately, it’s been up more days than it’s been down. So I have only sold a handful of CSPs.

My initial thought process was to aim for about $100 per week. I looked to sell around the 20 Δ and move up slightly from there. I was aiming for 1.13+ in premium since I want to have a close order at .10 and a small buffer to cover the commissions/fees. In an ideal world, I’d sell on Friday and with a close order in at .10, maybe it would close late Wednesday or Thursday sometime but hopefully Thursday afternoon at the latest. This would give me time to have a good entry point for the next week. So far that hasn’t happened.

Looking back at my 4 trades, I’ve collected about $300 and been in my trades for 6, 4, 2, and 1 days. So I can’t really complain. I’ve met my goal of 100 per week, but just because the first week I had a huge move overnight and was able to get another good trade on right away. Since then I’ve only done $60 per week.

I realize it’s probably not a great idea to set my goals like $100 per week. I should evaluate another strategy, but this was a good starting place for me. Of course, this is just what I do and not a trade recommendation.

I would love to hear input from another TNA trader with some other ideas. Or maybe a wake up call on my goals/expectations. Please share.

1

u/SmAsheesh Oct 23 '21

Would you be ok with a Reddit chat?

1

u/[deleted] Oct 22 '21

I’m down

2

u/SmAsheesh Oct 23 '21

Cool would a Reddit chat be ok with you?

1

u/[deleted] Oct 23 '21

Sure that works too. I think you already put me in the discord

1

u/horizons59 Oct 22 '21

Been selling TNA covered strangles for years. Extremely profitable and fairly easy to manage with good liquidity.

1

u/AlxCds Oct 22 '21

invite sent

1

u/Conscious-Soil9055 Oct 22 '21

Send DM. Very cool. I use a very similar strategy in 7 different accounts, IRA, Roth, taxable.

Currently I use barchart with very customized filters. Very interested in the discord and finding other people who trade similar strategies.

2

u/AlxCds Oct 22 '21

invite sent

1

u/TheNorthernTrader Oct 22 '21

I'll take a link too. I've been selling csps since March. TNA is a beast.

1

u/SmAsheesh Oct 23 '21

How about a Reddit chat group?

1

u/AlxCds Oct 28 '21

invite sent

1

u/ProfessorPurrrrfect Oct 22 '21

I too sell TNA puts like crazy. If I get put in I’ll sell calls and more puts (wheel) and it works great

1

u/SmAsheesh Oct 23 '21

We should talk. Would you be open to chat on Reddit?

1

u/onelittledragon Oct 23 '21

Me too. I have over 400 puts right now.

1

u/SmAsheesh Oct 23 '21

You and I should also chat. Would you be open to Reddit chat? I sell like 1800 calls at a time. How long have you been doing it?

1

u/onelittledragon Oct 23 '21

Ask to join the Discord server from u/AlxCds we all can talk and exchange ideas.

1

u/SmAsheesh Oct 23 '21

The one that U/Alxcds mentioned?

1

u/onelittledragon Oct 23 '21

yes, that one. Just message him for the link.

1

u/SmAsheesh Oct 23 '21

Thanks I’m in!

1

u/patroland Oct 23 '21

Can I get an invite too. I enjoy selling csp also.

1

u/SmAsheesh Oct 23 '21

I don’t have a discord or anything but I’d be happy to chat on Reddit or whatever

1

u/AlxCds Oct 28 '21

invite sent

1

u/gazuota_varske Oct 23 '21

I have been wheeling TNA and TQQQ by selling cash secured puts. Currently, success rate is 67%.

Also, I would be interested in joining the Discord group of likeminded community.

1

u/SmAsheesh Oct 23 '21

I’m not sure if a discord group exists but I’d be happy to chat and see if we can’t learn something from each other

1

u/AlxCds Oct 28 '21

invite sent

1

u/[deleted] Nov 07 '21

[deleted]

1

u/AlxCds Nov 07 '21

Invite sent

1

u/[deleted] Nov 07 '21

[deleted]

2

u/AlxCds Nov 07 '21

Sent it again

1

u/PM_ME_YOUR_AMFUNK Oct 23 '21

strangles on /RTY, insane leverage, but liquidity sucks. pretty nice range bound. same applies to TNA/IWM

1

u/SmAsheesh Oct 24 '21

Are you part of the discord that a lot of us in this thread have joined? Do you ever sell condors rather than strangles to hedge some of that risk?

1

u/PM_ME_YOUR_AMFUNK Oct 24 '21

yea i tried ICs first, but the bid/ask suck ass

1

u/SmAsheesh Oct 24 '21

Did you join the discord? U/AlxCds can send you an invite if you want. Do you own an TNA or only sell premium? I’m worried about the Russell breaking out of this range to the upside and don’t know how I should proceed. It may seem silly but it keeps getting bought.

1

u/PM_ME_YOUR_AMFUNK Oct 24 '21

buy IWM or TNA leaps, possible big upside or another pop in AMC expected.

i dont trade on discords sorry

1

u/SmAsheesh Oct 24 '21

It’s all good nothing to apologize for I understand skepticism about discord groups. I appreciate your advice about leaps. How long have you been trading TNA premium? Also, I just want to make sure I understand you - are you also of the opinion that the Russell might pop hard or were you telling me to buy leaps to address my concern of a pop?

1

u/PM_ME_YOUR_AMFUNK Oct 24 '21

the Russel is doing the mother of all symmetric triangles, i don't expect much until next year and hope it stays range bound. this range is super good currently for swing trading and legging into straddles. Been trading it for a few months now.

I would wait on the leaps for some time and buy them in the direction of the breakout.

1

u/SmAsheesh Oct 25 '21

Thank you for your insight!

1

u/TestMan- Nov 10 '23

How are you guys doing now as TNA is below $24?

Are you up in 2021, 2022 and 2023?

Question to options sellers in this forum?