Trades on the strangles for AAPL, FB, TSLA and NFLX were in direct relation to this post below to show how selling naked would work as a hedge on cash alone:
#ShortStrangles on #Stocks – stealing money weekly in cash
It was not a spectacular week but there was a gain 2.3% on total margins for the trades (still, scale that over a year and happiness will reign).
Should note only AAPL steadily decayed through week. FB came within a whisper of being stopped out with a loss but righted itself by Friday and expired worthless. TSLA slightly touched its upper strike stop at 360.84 but sold off so quickly I didn’t close it.
MADE A MISTAKE AND GOT AWAY WITH IT – NOT GOOD
Should have closed NFLX which showed a 47% loss for the position, a 2.8% loss on the margin requirement, but with the stock itself up a virtual six days in a row, wildly overbought and ripe for a bit of end-of-the-week profit taking, so decided to hold it into Friday. Probably because I wrote the post in the link above, I was thinking too much. Not a good thing to do in options trading.
Not honoring the NFLX stop was a mistake and I’m rationalizing its profit since it worked out great but doing that on a regular basis is a road to ruin. Being rewarded for making a mistake makes one think it can be done again…and again…until one comes along and kills you.
#ShortStrangles on #Stocks – 11/18-11/22.$AAPL 260P/270C, $FB 190P/200C, $TSLA 340P/360C, $NFLX 290P/310C.
RESULTS: AAPL +100, FB +100, TSLA -.07% NFLX, +84%, TOTAL 2.3% ON MARGIN.#Options #OptionsTrading #Investing #StockHedging #StockOptionshttps://t.co/rs3q62Pb7i
— The God of Trading (@TheGodOfTrading) November 25, 2019
THIS WEEK’S STRANGLES:
#ShortStrangles on #Stocks – 11/25-11/29$AAPL 260P/270C, $FB 195P/205C, $TSLA 330P/350C, $NFLX 305P/320C (put on at NFLX 314).#Options #OptionsTrading #Investing #StockHedging #StockOptionshttps://t.co/UiPViWswvo
— The God of Trading (@TheGodOfTrading) November 25, 2019