heart attack week on directional trades

[Crazy ayzo]

I had a pretty amazing outcome to a terrifying week.  One way to learn the value of non-directional trades is to try the opposite.  All's well that ends well, but I almost had wear adult diapers on Wednesday.  I made about $24K, but selling naked puts nearly gave me a heart attack.

[Kim]

Put selling is a good strategy, but position sizing is the key. Just don't sell too many contracts. Here is some further reading:

• Selling Naked Put Options
• Selling Puts: The Good, The Bad And The Ugly
• How To Blow Up Your Account
• The Spectacular Fall Of LJM Preservation And Growth
• Karen SuperTrader: Myth Or Reality?

 

[gowthamn]

On 11/2/2018 at 4:36 PM, Crazy ayzo said:

I had a pretty amazing outcome to a terrifying week.  One way to learn the value of non-directional trades is to try the opposite.  All's well that ends well, but I almost had wear adult diapers on Wednesday.  I made about $24K, but selling naked puts nearly gave me a heart attack.

How did you decide the direction to take?

[Crazy ayzo]

@gowtham,

On the QQQs, I kept hearing in the market news the market is going to be volatile at least through the election.  I expected it to oscillate, so I took the straddles.  On opening the trade, I planned to sell both legs at a profit.  I should have stuck to my original strategy a little longer.

On netflix, I bought 500 shares at about the same time.  I sold a straddle.  My logic was that I wouldn't mind buying more NFLX at that price, or getting called out at the higher.

My June 19 '20 FB put was bought on the same day I bought 100 shares as downside protection on a long position, not an options gamble.  Sold it when I thought the market was down enough.

I bought the FB Nov 2 puts thinking I'd either be happy to own more FB at that price, or get paid the Put price.

AMZN Nov 2 put was the same logic as FB.

AMZN Nov 16 strangle seemed like a no brainer that the following days would bring more volatility after such a big drop.

I also bought puts on VXX mid last week that are doing nicely but still open.