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Coach Mak | Know Your Money Profile picture
@wealthcoachmak
Apr 22 β€’ 4 tweets β€’ 2 min read Twitter logo Read on Twitter
Option Sellers make profits more frequently but they earn small amounts every time

Option Buyers earn larger profits from each winning trade but they win less frequently

Which options camp πŸ•οΈ do you lean towards?

πŸ‘‡πŸ‘‡πŸ‘‡

#OptionsTrading #optionbuying #Optionselling
Agree with this assessment about option sellers and option buyers?
I am in Option Sellers camp πŸ˜€

Buying options occasionally but mostly staying with selling
If you want to learn how to sell options check out below πŸ‘‡πŸ‘‡πŸ‘‡

coachmakacademy.carrd.co

β€’ β€’ β€’

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More from @wealthcoachmak

Coach Mak | Know Your Money Profile picture
Apr 23
Looking to sell Options?

Like Covered Calls or Cash Secured Puts?

Then knowing the Greeks can help you make more informed decisions

The Greeks are a set of metrics that measure different aspects of options contracts

A brief thread 🧡 on the Greeks

πŸ‘‡πŸ‘‡πŸ‘‡

#OptionsTrading… twitter.com/i/web/status/1…
What is Delta?

Delta measures how much the price of an option changes in relation to a change in the price of the underlying asset

A high delta means the option is more sensitive to changes in the underlying asset's price
What is Theta?

Theta measures how much the price of an option declines as time passes

It's also known as the "time decay" of an option

A high theta means the option's value will decrease rapidly as time passes
Read 7 tweets
Coach Mak | Know Your Money Profile picture
Apr 22
All rollovers are NOT the same when you Sell Options

What are rollovers?

You BUY back an option that you sold and then you SELL another option at a different strike price and/or expiry

Here are a few different types of rollovers

πŸ‘‡πŸ‘‡πŸ‘‡

🧡

#OptionsTrading #Optionselling
Forced Rollover

Your option is already at a LOSS

Your option is about to be called or assigned

But you don’t want that

So you are FORCED to roll it over to the future at the same strike price or higher

Example: $AAPL Image
The price of $AAPL is above the strike price of the call option

To prevent my shares being called at a value below my strike price I ROLLOVER the option

I kept the same strike price and only went out by a week

I could have chosen a higher strike and more distant expiry
Read 8 tweets
Coach Mak | Know Your Money Profile picture
Apr 22
A thread 🧡 about $AAPL Covered Call that didn’t work out as I had hoped

There are risks with selling options that need to be understood

As they say β€œNo Free Lunch”

But…

Even trades that go against you can be managed and maneuvered

πŸ‘‡πŸ‘‡πŸ‘‡

#OptionsTrading #Optionselling
I sold an $AAPL Covered Call on 4/10:

- 4/14 $162.5C
- Premium: $115

$AAPL was around $159 at that time so this was a higher than usual risk that I took by selecting an aggressive strike price Image
The risk materialized and $AAPL reached ~ $165.2 by expiry

I rolled over the call to 4/21 just prior to close on 4/14

Same strike price

Premium: $95

It was a risk by rolling over in the money but I was willing to be patient Image
Read 7 tweets
Coach Mak | Know Your Money Profile picture
Apr 22
$DDD Covered Calls have been good to me

My Cost basis on 2800 $DDD shares: ~$6.5

I started selling Covered Calls on these shares on Oct 19, 2022

I earned $2296 in 6 months

$2072 out of that was in first month

A thread 🧡 on how

πŸ‘‡πŸ‘‡πŸ‘‡

#OptionsTrading #Optionselling
First Covered Call sold on $DDD on 10/19:

- 10/28 $9 x 28 lots
- Premium: $420

Call expired worthless

Then:

- 11/4 $9.5 x 28 lots
- Premium: $168

Rolled DOWN to 11/4 $9
Premium: $196 ImageImage
The 11/4 $9 Call expired worthless

Sold another call on 11/7

- 11/11 $8.5 x 28 lots
- Premium: $728

By 11 $DDD spiked from $8 to $10

I rolled over the call to 6+ months out:

- 5/19 $11 x 28 lots
- Premium: $560

Total earned so far: $2072 in < 1 month ImageImage
Read 6 tweets
Coach Mak | Know Your Money Profile picture
Apr 22
🚨$AMC Cash Secured Puts 🚨

Total CSPs sold: 4

A brief thread 🧡 on all:

πŸ‘‡πŸ‘‡πŸ‘‡

#1:

- 3/17 $2P x 10 lots opened on 2/14
- Closed on 2/27
- Net Premium: $330 - $50 = $280
- Risk: $2000

Return: 14% in 2 weeks

Annualized: 364%

#OptionsTrading #Optionselling ImageImage
#2: $AMC

- 1/19/24 1P x 15 lots opened on 3/2
- Still OPEN
- Net Premium: $390
- 15 lots out of 20 filled (other 5 cancelled)
- Risk: $1500

Return: 26% in 10.5 months

Annualized: 31%

A long dated order risking $1500 ImageImage
#3: $AMC

- 5/19 $2P x 5 lots opened on 3/15
- Closed on 4/21
- Net Premium: $170 - $15 = $155
- Risk: $1000

Return: 15.5% in 5.5 weeks

Annualized: 146%

#OptionsTrading #Optionselling ImageImage
Read 5 tweets
Coach Mak | Know Your Money Profile picture
Apr 21
A brief thread 🧡 about trades that didn’t work this week

Some were not expected to be winners right away but still counting them here

None were spectacularly bad 😎

πŸ‘‡πŸ‘‡πŸ‘‡

$AAPL $JNJ $TSLA

#OptionsTrading #Optionselling
A rollover of $JNJ Covered Call

- 4/21 $160C

When that trade was made (a rollover from previous week) $JNJ was at $166

$JNJ came down after earnings but not enough

So this one remains in the rollover β€œjail” ImageImage
$AAPL rollover

- 4/21 $162.5C

$AAPL is pretty much holding the market

It did come down some this week but not enough for the sake of this call

So rolled again today ImageImage
Read 4 tweets

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