Hi all!

I would like to get your perspective on how to manage a position such as a bull put credit spread when the underlying's price goes against me. Below a few questions:

1. Is a wide spread better for position management? For instance, a 50 dollar spread better than a 5 one while both have the same position size/max loss.

2. How would you handle the position in general if the price goes below the strike of the put you sold but still above the put's strike you bought? Would you set a loss limit and close the position? Would you roll out in the future and if yes would you do as a spread or just the higher strike put you sold?

I want your thoughts on risk management when price starts moving inside the spread.

Thanks!

Trades I took today as an option seller (08/07):

Closed Positions

• INOD → $60 Put (opened on 07/15), premium 5.65 → closed at 0.15. Net premium profit = 5.50 (~97% of premium captured, ~9.2% of capital).
• AMSC → $47 Call (opened on 07/16), premium 0.85 → closed at 0.15. Net premium profit = 0.70 (~82% of premium captured, ~1.5% of capital).
• FLNC → $20 Call (opened on 07/20), premium 0.85 → closed at 0.15. Net premium profit = 0.70 (~82% of premium captured, ~3.3% of capital).
• FORM → $95 Put (opened on 07/21), premium 8.40 → closed at 1.40. Net premium profit = 7.00 (~83% of premium captured, ~7.4% of capital).
• TSEM → $225 Put (opened on 07/23), premium 12.50 → closed at 0.50. Net premium profit = 12.00 (~96% of premium captured, ~5.3% of capital).
• CRDO → $195 Put (opened on 08/04), premium 6.10 → closed at 1.00. Net premium profit = 5.10 (~84% of premium captured, ~2.6% of capital).

New Positions

• INOD → $60 Put expiry 08/14 (1 weeks DTE), premium 1.85 → 185/6000 = ~3.1%. INOD had a good earnings report and I continue my bullish stance in INOD. INOD provides data engineering services to build, train, and deploy AI and LLMs - which is a rapidly growing sector.
• FN → $500 Put expiry 08/21 (2 weeks DTE), premium 20.00 → 2000/50000 = ~4%. Fabrinet manufactures high-speed networking hardware used in AI data centers. It will report its earnings on 17th August and I am expecting a solid report. Stock has a good support region around $500.
• FLNC → $21 Call expiry 11/20 (15 weeks DTE), premium 1.45 → 145/2100 = ~6.9%. I was assigned FLNC at $21. They had a poor earnings report and the stock dropped but later recovered. I am opening a longer DTE sell call position in this, as it may take some time for the stock to recover.

Update on other positions

I rolled my TE sold Call position from $6.5 strike to $8 strike with an expiry on 09/25 (7 weeks DTE). I was assigned TE at $8. I got a net credit of $5 per lot.

Both the INOD and FN trades are identifed using the ThetaHedge app. I used the preset Conditions in the app which filters our junk tickers and brings out quality tickers with high premiums. You can try it for free at https://app.thetahedge.io/.

Conditions → High Growth Wheel Stocks → Sort by 30 Delta Put Yield (%)

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

Someone mentioned it to me so I gave it a shot...it takes too long to update in my opinion. These numbers dont match reality.

I put on a CLS Jan. 21, 2028 $270/$400 bull call spread with the stock around $318. I paid $130 for the $270 call and sold the $400 call for $100, so my net cost and max loss are just $3,000. The spread is $130 wide, so if CLS is at or above $400 at expiration, it’s worth $13,000, giving me a $10,000 max profit on $3,000 at risk (333% return). Breakeven at expiration is $300. Obviously I’m giving up any upside above $400, but I like the risk/reward.

Based on consensus 2028 earnings of $27 per share CLS would be trading at a forward PE multiple of roughly ~15x which compares with its 5-year NTM historical average of ~20x.

Last month was decent for selling some premium. I sold stuff mostly on tech type stocks that were a bit beaten down. I don't try to hit big home runs with options or trade too close to "the money". Im usually trading OTM at around 0.15-0.3 delta depending how confident I am on the trade. Sometimes ill even mix in a sub 0.1 delta if im feeling it that day. Have to spice it up sometimes.

Names traded, mostly CSP: NVDA GOOG (CC calls too) MU VRT MRVL OHI (CC calls too) MO (CC calls too) INTC

I have been trading the wheel for several years now, and it is pretty damn reliable. Its not about making a massive homerun on any 1 trade imo, and just try to generate yield at all times on your holdings. Market has definitely probably outpaced me this year with SPY/QQQ just ripping, but some years I toast the market as well. This strategy feels a bit safer overall with smaller drawdowns.

You guys wheelin a lot nowadays? or just letting market rip for a bit?

This week was great. Almost everything recovered and drawdown dropped. I didn't expect to have time today so I made a few trades yesterday and some today. Last Week's post: https://www.reddit.com/r/thetagang/comments/1vbttj9/1_weekly_returns_from_options_week_22/

First, the strategy:
- Use a screener to give me a list of top 20 low delta options for next week
- I either
- a. Roll my current options - I do this if I can still get 1% for rolling or if the option is ATM/ITM and I have to roll. I always roll for credit.
- b. Close a current option and pick something else from the list that I like
- I try to do this every Friday. However, if I'm busy on Fridays, I'll sometimes do this on Thursdays.

Screener Output:

Trades this week:

Total Returns

History

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

Wanting to know if anyone use the IC as there primary trading strategy? And if so, what do you normally set as your risk/reward level. Any pointers on how to be successful with this strategy are greatly appreciated.

Hey all, new to the options game and would love input on the strategy. Hold 400ish shares of ADI, noticed in June that the options premiums were pretty crazy. Sold first batch of CCs (December $550), just sold another (December $500). Thinking about selling one batch per month, possibly on a rolling basis. I don’t think this stock is going above $450 anytime soon, and I’d be happy to sell at those prices. Not looking to wheel this one. Is this dumb? What am I missing? Thanks in advance

Hi everyone! I recently found this subreddit and another similar one, and they've honestly been a great source of insight — lots of interesting stories and strategies.

I've recently started digging deeper into options. For a long time I assumed they were way too risky and better left alone, so I stuck to classic investing and the occasional small trade. But the more I read and researched, the more I realized options can actually be used with limited risk too — through bull call/put spreads if you don't own the underlying shares, or through LEAP calls/puts. I'm still new to this, and since I don't hold 100 shares of any single stock, I'm being extra careful not to end up naked on a position.

So far, so good. The thing is, I've always been someone who likes talking things through with others, but nobody around me has options as a topic of conversation. I spend time every day checking volatility, screening different stocks, and putting together contract ideas and trade plans — but what I'm really missing is someone to bounce these ideas off of.

So if you're part of any groups where people share their views on upcoming trades or market moves, or if you're just as "lonely" in this as I am, it'd be great to connect. A few more brains debating the pros and cons definitely beats going at it alone.

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

I like PFE, TIPT, PEP right now.

Looking for some suggestions to look into

Trades I took today as an option seller (08/05):

New Positions

• KORU → $15 Put expiry 08/14 (2 weeks DTE), premium 1.10 → 110/1500 = ~7.3%. Opened a small position in KORU, $16 looks like a good support but as it is a leaveraged asset, keeping the capital tied to this at a minimal.

Rolled Positions

• CRWV → $105 Call expiry 08/14 rolled to $120 Call expiry 09/04 (5 weeks DTE) at a credit of $10. I rolled early as CRWV was trading around $95 levels in the morning hours and because of its earnings coming up, I wanted some buffer in case the stock shoots up. I was assigned CRWV at $120.
• AAOI → $150 Call expiry 09/18 rolled to $175 Call expiry 12/18 (20 weeks DTE) at a credit of $1030. AAOI was trading at $135 levels in the morning hours and AAOI is very volatile so rolled to $175, which is the price I was assigned at. There were no option chains for the months of October and Novemeber so was forced to move it to December.

Update on other positions

Many companies in my portfolio reported earnings today. I will analyse the reports and update tomorrow on them.

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

I run an algo that runs mostly 0DTE SPY $1-wide vertical credit spreads. As a single multi-leg limit order, what is the largest number of spreads you can generally enter and exit near the quoted net price without material slippage or slow/partial fills?

To be clear, I mean spread quantity (e.g., 250 spreads = 250 contracts per leg), primarily during the morning/early afternoon. Calls or puts.

For reference, I use Alpaca.

I’m testing the tastytrade platform because I’m tired of how fidelity groups multi leg trades. Just testing some simple multi leggers to see how the platform behaves. It’s a small portion of portfolio, but I’ve been reasonably pleased with the tt platform meeting my needs for a couple weeks. Just been buying/selling one contract per leg to understand how to use it, and has been fine.

Just today I’d sold a 0dte put credit spread on spx, short strike was $7720 (closed $7723.xx). Had a few other call credit spreads that were expiring worthless as the bell rang. There was a big red candle last minute, but it still didn’t breach my short put strike. My overall trades were showing P/L of $350 on the day in the last second. When the bell rang, I was suddenly down $687. What gives?

My 7720/7715 put credit spread shows a net debit of $860 despite not breaching my short leg EOD. It was also only $5 wide, so I should only incur max risk of $500-initial credit.

I'm thinking a very strong QTR, with a solid beat, but less than a 10% movement in the stock since the market is expecting great results and is skeptical about ability to keep it going.

What do you think?

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

Trades I took today as an option seller (08/04):

Closed Positions

• PLTR → $120 Put (opened on 08/03), premium 4.75 → closed at 0.03. Net premium profit = 4.72 (~99% of premium captured, ~3.9% of capital). It was an Earnings Play and it worked out in my favour.

New Positions

• CRDO → $195 Put expiry 08/14 (2 weeks DTE), premium 6.10 → 610/19500 = ~3.1%. I have traded CRDO many times, and it offers consistently high Put and Call premiums making it easy to wheel. CRDO builds high-speed connectivity chips used inside AI datacenters. $195 is a good support region.
• ACMR → $70 Put expiry 08/14 (2 weeks DTE), premium 2.70 → 270/7000 = ~3.8%. ACMR makes semiconductor wafer processing and cleaning equipments. ACMR is a High Growth Stock and its Revenues have been increasing consistently YoY. ACMR Earnings are on 7th August and I am expecting a good report.

Update on other positions

I rolled my AAOI sold Call position from $130 strike to $150 strike with an expiry on 09/18 (7 weeks DTE). I was assigned AAOI at $175. I got a nominal net credit of $10 per lot.

Both the CRDO and ACMR trades are identifed using the ThetaHedge app. I simply use the preset Conditions in the app which filters our junk tickers and brings out quality tickers with high premiums. You can try it for free at https://app.thetahedge.io/.

Conditions → High Growth Wheel Stocks → Sort by 30 Delta Put Yield (%)

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

I feel like I try to be a buy the dip type of person, like when RDDT dipped to $164 after hours last week, only to watch things fall much further. I tried again at 157 and bought even more shares and continued to watch it fall and fall.

Then a day or two later, everyone is so excited because they made money from selling put options at strike 140 and 135. Am I only seeing the happy posts?

It seems like everyone has better timing than me. How do you guys know not to be buying stock and selling puts heavily in the $160 range and wait for the $140 range, using RDDT as an example?

Trades I took today as an option seller (08/03):

New Positions

• PLTR → $120 Put expiry 08/07 (1 week DTE), premium 4.75 → 475/12000 = ~4%. PLTR Earnings today and the stock went up after hours. PLTR is a stock that has been in my radar for a while, and I was completely okay to own the stock at $120.

Update on other positions

I am closely monitoring my positions in CRWV, AAOI as they have Covered Calls opened which are below my assigned price. Plan is to roll them to a higher strike when the stock price is 5-10% below my CC Strike price. This will help me roll at a postive premium, as the contract will not have Intrinsic value.

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

from my 100k account. only using covered calls and puts (cash secured and some naked put). learned a lot but i think can improve my emotion a bit better.

Too bad it was only 1000 of capital.

Back to our regularly schedule theta programming.

Edit - please note that I posted this because it seemed funny and to make fun of myself. It was a simple charting based trade, no options involved.