BABA and TSLA

[caseyh1981]

Hi all! After years of trading, I am ready to learn how to trade options and I've been watching videos and reading when I can. Anyway, I am going to use your BABA and TSLA example to paper trade and I have a question. When you say you are "buying" puts, are you buying to open or buying to close? I have both options when placing an order to buy on my platform.

[extra123]

Buying to open since you're opening a position. It would be close if you had initially sold a put.

[AstuteShift]

Hi all! After years of trading, I am ready to learn how to trade options and I've been watching videos and reading when I can. Anyway, I am going to use your BABA and TSLA example to paper trade and I have a question. When you say you are "buying" puts, are you buying to open or buying to close? I have both options when placing an order to buy on my platform.

Paper trading them is a smart move. Options are high octane action and not for the faint of heart.

You buy to open if you’re purchasing options

[caseyh1981]

Buying to open since you're opening a position. It would be close if you had initially sold a put.

Paper trading them is a smart move. Options are high octane action and not for the faint of heart.

You buy to open if you’re purchasing options

Thank you both!

Lol, yes, I would be in over my head to make the trade for real $$. I definitely learn better from DOING, in addition to reading, so I am glad that paper trading is a thing!

[Triplethought]

The 2022 puts is for the smaller account
2023 puts is for the big accounts

The other is my 401k which I can only trade with ETFs but that’s excluded

OK, I see now why a short might be warranted. Regulatory hurdles, etc. I might consider this play knowing there is a small (25% ?) chance these things will take it down. I see his ethical argument but what better way to take an ethical stand than by shorting them? I think Biden administration taking action is the more sure way this stock crashes. Unfortunately I believe Biden is too squishy on China to act decisively.
https://www.fool.com/investing/2021/02/ ... aba-stock/

[MarkD]

Another frog in the pot. I grabbed a BABA 160 put and got it around $7.80. Will see how this plays out. Very long the market overall but still have Sol's 10% ready to deploy. My guess is a pullback is ahead but this bull may go to 15k on the Naz as he noted. Preparing to pair a lot of non-TI positions with intent to plow more capital into the market as it recedes from the highs.

[AstuteShift]

So far so good with the Tesla puts

Baba eventually will fall

[Triplethought]

So far so good with the Tesla puts

Baba eventually will fall

I can't even believe we've made $170 on this play overnight. I'm learning. I might just buy baba put after all.

[AstuteShift]

So far so good with the Tesla puts

Baba eventually will fall

I can't even believe we've made $170 on this play overnight. I'm learning. I might just buy baba put after all.

What helps me and keeps me calm is consistent visualization techniques on winning with trades, over and over, 2-4x a day. This reinforces the positive and super amplifies it your belief that instead of becoming an elite trader, you are already there and you did it already. It becomes business as usual

[Triplethought]

So far so good with the Tesla puts

Baba eventually will fall

I can't even believe we've made $170 on this play overnight. I'm learning. I might just buy baba put after all.

What helps me and keeps me calm is consistent visualization techniques on winning with trades, over and over, 2-4x a day. This reinforces the positive and super amplifies it your belief that instead of becoming an elite trader, you are already there and you did it already. It becomes business as usual
[/quote

What do you think of the idea of selling a put on DIA Jan 2022 strike price of $260? My theory is, if we think there will be a 10% correction this year, seems like buying a put that is discounted 8% to the current DJI would work out for us.

[Eric]

I can't even believe we've made $170 on this play overnight. I'm learning. I might just buy baba put after all.

Just be prepared to loose $600 tomorrow and gain $900 on Friday... With leverage and derivatives the losses are amplified as much as the gains. The trip will be BUMPY but it can be exceptionally rewarding. One man's thrill is another man's ulcer. Here's a screenshot from my "Hyper-Aggressive-Growth" (others would say "Reckless") portfolio (that still hasn't been transferred away from Robinhood yet...but that's off topic )

[Eric]

What do you think of the idea of selling a put on DIA Jan 2022 strike price of $260? My theory is, if we think there will be a 10% correction this year, seems like buying a put that is discounted 8% to the current DJI would work out for us.

I think selling that put would require $26,000 of security capital (if not a spread) and would return about 3.8% total over 344 days for an annualized return of 4.0%.

Buying the put instead of selling it could return about 300% IF the DOW corrected by 15% or more with plenty of time-value left on the contract. I would wait until SOL's bullish sentiment indicators (60+ once or several trips over 55 in 90-day span) are triggered before entering that position and I would probably pay the extra time premium for 2023 dated contracts.

[Triplethought]

What do you think of the idea of selling a put on DIA Jan 2022 strike price of $260? My theory is, if we think there will be a 10% correction this year, seems like buying a put that is discounted 8% to the current DJI would work out for us.

I think selling that put would require $26,000 of security capital (if not a spread) and would return about 3.8% total over 344 days for an annualized return of 4.0%.

Buying the put instead of selling it could return about 300% IF the DOW corrected by 15% or more with plenty of time-value left on the contract. I would wait until SOL's bullish sentiment indicators (60+ once or several trips over 55 in 90-day span) are triggered before entering that position and I would probably pay the extra time premium for 2023 dated contracts.

Yah, I meant buying a put. I've sold so many puts I have the lingo messed up. Interesting about giving it another year. I was assuming we'd see 8% steam come out this year. I'll check price difference. Thanks.

[AstuteShift]

What do you think of the idea of selling a put on DIA Jan 2022 strike price of $260? My theory is, if we think there will be a 10% correction this year, seems like buying a put that is discounted 8% to the current DJI would work out for us.

I think selling that put would require $26,000 of security capital (if not a spread) and would return about 3.8% total over 344 days for an annualized return of 4.0%.

Buying the put instead of selling it could return about 300% IF the DOW corrected by 15% or more with plenty of time-value left on the contract. I would wait until SOL's bullish sentiment indicators (60+ once or several trips over 55 in 90-day span) are triggered before entering that position and I would probably pay the extra time premium for 2023 dated contracts.

Yah, I meant buying a put. I've sold so many puts I have the lingo messed up. Interesting about giving it another year. I was assuming we'd see 8% steam come out this year. I'll check price difference. Thanks.

Market puts are tricky, but waiting for bullish sentiment to hit those high marks make it a good bet.

An even better bet imho is just buying UUP calls, market tanks and the masses and everyone go to the dollar for safety.

Macro bets like this is like chess and eventually it will be check mate for the astute and the dirt for the clueless masses

[Triplethought]

Market puts are tricky, but waiting for bullish sentiment to hit those high marks make it a good bet.

An even better bet imho is just buying UUP calls, market tanks and the masses and everyone go to the dollar for safety.

Macro bets like this is like chess and eventually it will be check mate for the astute and the dirt for the clueless masses

I hadn't thought of buying UUP Calls. When it was mentioned in forum I bought 1/3 lot. I've been massively unimpressed with the play. It's very stable but it's been mostly negative a few bucks. I told myself "even if the market tanks and UUP pops up this 1/3 lot isn't going to do shit for my portfolio" But it makes sense if you're willing to leverage a lot (and lose it all) it could provide some decent insurance against the down stroke.

FWIW I did buy a Put on DIA today before this discussion.