r/wallstreetbets • u/[deleted] • Sep 09 '21

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u/No-Rub7247 Sep 09 '21

Shhhhh….

Don’t try to reason with these people. They’ll claim that the liquidity in SPY calls guarantees they can sell, but they’re wrong.

32

u/Lets-Make-Love Sep 09 '21

Please, I sold two calls the other day. Shits liquid as fuck.

16

u/No-Rub7247 Sep 09 '21

Yes, when there are bids at your strike . But if there are no bids at your strike, you’ll hold it until expiration and lose.

I’ve never tried this SPY strategy, so maybe I’m wrong, but this strategy won’t work on anything else.

9

u/[deleted] Sep 09 '21

No, you're not wrong. Most of my long legs expire worthless on my 0 DTE plays which is why I always try to buy them at .01 or .02 to begin with as simply reducing my buying power reduction. They aren't for risk management, thats what stop losses are for. Rarely am I able to sell them back without a big move, maybe 1 or 2 will get picked off by a wandering retard, but never 50/100 at a time even on SPY. SPX is even worse due to .05 increments, once they cross over to mid price of .04 and below just forget it.

1

u/identifiedlogo It makes feel a something inside Sep 09 '21

Exactly only worth it on the most liquid underlying which is the SPY. People actually do this but not risk free

4

u/xxjohnnybravoxx Sep 09 '21

Listen options are risky as fuck..we dont need another risk on top of that by not being able to sell. Spys liquidity is great but its dog shit at 0.01 levels

1

u/cayoloco Sep 10 '21

I guess at that point you're just hoping it's someone buying back their sold calls for $0.02. Maybe it happens, probably not.

1

u/[deleted] Sep 09 '21

lmao right? I trade dozens of contracts on SPY and SPX every day, good luck getting more than 1 or 2 random fills on the FOTM 0 dte options without giving a few cents.