Perhaps there’s a way to trade deep-in-the-money options profitably. I haven’t found a good strategy, and I picked the wrong stock to play with. BABA was a boat anchor, sinking, sinking, sinking. The strategy I was trying to follow was hypothetically foolproof. Every month, I can sell a DITM call against 100 shares of a…
Yesterday, I was talking about patience. Today, I reviewed my original post talking about the trade. I said I would aim to take 75% of the profits if I could. 75% of $1.09 is $0.81. Looking at this now, I think I made a mistake. I am not sure. Just on the option itself, which…
There are about 23 days to expiry for the BABA Trade. The options expire on November 17. I plan to wait until 15 days remaining to roll the trade. That’s about a week from now. I mentioned in the last post that my delta on this trade is only about 5%. So when BABA stock…
I guess I realized this, but just today, it really hit home. BABA stock has really fallen since I entered the trade. I bought BABA at $86.72 and it is now $84.02. I’ve lost $2.68 per share on those shares. That is down 3% over the past two weeks! BUT I am still in a…
To recap a trade that I put on: The total cost to put on this trade was $86.66 – $17.75 = $68.91 per share. I intended to “roll” this trade to the next 0.95 delta strike with 15 days to expiry for a $1 profit. It’s currently 39 days to expiry. As I type this,…
The next option strategy I’m trying is a deep-in-the-money, covered call. Yes, I know that this blog is essentially about dividends. But I’m in my playing-with-options phase. What if you can invest in a strategy almost guaranteed to make money? Does such a thing exist? Let’s look at an example of such a strategy: a…
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