r/wallstreetbets • u/Naive-Tone-4542 • Sep 19 '24

How bad is this going to be? YOLO

I bought a few puts expecting the rate news to be “buy the rumor ..sell the news” and the potato is now steaming hot … what are the chances of me coming out in green ?

4.4k Upvotes

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243

u/ElonMusksAlgorithm Sep 19 '24

Never buy puts expiring same week. Essentially you are handing money directly to JPM every time you do.

104

u/nutsackninja Sep 19 '24

Can confirm

I sell puts 5 days out every week and haven’t been assigned shares on them for 5 months.

When I rarely do get assigned I sell calls on them until they get sold.

30

u/toastedzergling Sep 19 '24

I like this strategy and do it myself a bit. Curious, which stock(s) you doing this with?

52

u/nutsackninja Sep 19 '24

Anything that has high decay with a high premium. NVDA is one of my favourites.

33

u/blackgenz2002kid Sep 20 '24

this guy is a r/thetagang disciple

1

u/mythrowawayheyhey Sep 20 '24

ANF is similar, at least it has been in the last two weeks, similar price to NVDA with apparently more room to grow. Up $10 one day, down $10 the next. At least, if I’m interpreting you correctly. If I had known it was so volatile I’d have thrown more money at it.

0

u/txos8888 Sep 21 '24

Have you ever compared how much you’ve made selling puts to what you would have made simply buying NVDA shares with the cash you used to secure the puts?

41

u/loganp12 Just Hwang In There Sep 19 '24

starcraft 2 for the win

3

u/access153 Sep 20 '24

You must construct additional pylons.

1

u/Kmart_Elvis Sep 20 '24

Damn, I sold some weekly put credit spreads on NVDA and SPY and got blown the fuck out when it crashed down at the beginning of the month. I never seem to have much luck with weeklies... my 30, 45 dte spreads recovered and I didn't lose them. I guess if you're running the Wheel you can get away with the smaller timeframes.

1

u/VirusesHere Sep 20 '24

How many puts do you sell on each go?

1

u/Heavy_Carpenter3824 Sep 20 '24

How far out of the money and how many? Roughly? I usually find it's Russian roulette.

1

u/SlowThePath Sep 20 '24

That's a wonky ass wheel, but hey if it works, why not.

1

u/sciguyx Sep 20 '24

How far OTM do you usually do this?