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 US Option trader, 0DTE to 2month DTE

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dwRK
post Apr 29 2025, 12:05 PM

the consummate chartist
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QUOTE(ChAOoz @ Apr 29 2025, 11:47 AM)
If strictly speaking for weekly usd500 and with 100k usd capital might need to go for riskier option above the 10% strike range or higher iv ranked stock.
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yeah... just saying smile.gif

but going from weekly to 2 weeks... yield is cut in half...

dwRK
post Aug 23 2025, 05:34 PM

the consummate chartist
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QUOTE(buffa @ Aug 23 2025, 05:10 PM)
For me, the difficult of the option is setting the exercise price. Set too low, stock get called. Set too high, the premium is low.
Any tips for deciding the exercise price?

I just started selling call option. First one i got the premium. 2nd gonna get call. But that one i wanted to sell, so I dont really mind.
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look for strike price vs prob of itm... or delta

dwRK
post Aug 23 2025, 10:10 PM

the consummate chartist
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QUOTE(luminaryxi @ Aug 23 2025, 08:05 PM)
Hi, what Delta would you recommend?
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depends on one's strategy... also some let their trade expires, some close at 50% of profit potential...

best you try with paper trading and see what works for you...

dwRK
post Aug 26 2025, 08:31 AM

the consummate chartist
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QUOTE(luminaryxi @ Aug 25 2025, 10:02 AM)
i think premium not so lucrative if really want to put far OTM.

scouring through seekingalpha to find stocks to open csp.just wanna target 1-2% monthly good enough already, but limited BP
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i look for high volatility over historical... ie volatility rank, this will give higher premium...

then i look for probability of otm... im ok around 60% bc i also chart... and the high volitility has been included in probability calc...

finally look at shortlisted choices and other criteria then decide which to take...

imho far otm low premium is not worth the effort... and with selling options, you need to do enough trades to be statistically relevant...

one shouldn't be afraid of assignment or called away... you just do wheel swith tactics lor... the stock is just intermediory... its the premium you are after...

dwRK
post Aug 26 2025, 08:35 AM

the consummate chartist
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Senior Member
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QUOTE(tkwfriend @ Aug 24 2025, 08:06 PM)
I just bought a direction call for tesla, probably arrive 350 is the target
tsla 12 september 2025 350 call

cut loss 25%
take profit when closer to strike price
total volume bought above $23mil value of contract.  Average premium  price estimate 8.40 for contract bought
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nice.. all the best


 

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