I sold couple of puts, little bit later after you and on same levels and I am doing well. I am limited by my margin so I have only 3 positions but for Jan 19/2024. I am just wondering how long I should hold them. I checked the calculator and seems that after some time or certain upside, the profit is limited. What is your take on that? Thanks for great articles every day, really keeps me to have clear view on the market without noise.
The question you pose is interesting bc I don't know your situation. For me, I close when the margin required isn't worth the total return left. That is the answer and for every person that is different. If it requires $100k margin and my total return is $2000 is it worth it? No.
OK, I didnt think much about it that way, would be nice to have some video or article about this risk management :)
For example, I have one TWLO Jan19'24 40 Put sold, so far my Unrlzd P&L is +118.64 and Margin Impact is 610.36. Possible max return is $611.00 so it seems like a good to hold it still and let the time pass for decay. I know it might sounds silly this question but I just need to explain it myself to be sure that I understand the risks :) Thanks for your review.
The risk Simon is you would have to go long 100 shares of TWLO at $40 - $6.11 so $33.89.
The stock is $60 this morning. If you do go long its at a 50% discount today, that's your risk. Your risk is $33.89/share. I can't manage how much you want to risk but you know your goals and where you want to buy and sell. If you could buy TWLO for $33.xx today would you? That is the question.
Right, that makes more sense to think about it this way. I honestly don't know if it is a good buy today for $33, it can go even lower but it is a lever from FEB 2018 so not that bad. But I would try to sell the calls on it as you suggest :) My question was more like what is desired return on put sold to close the position, I am on total return of 20 %. But I guess that is more of a question how much I am willing to risk and gamble.
Love the new tracker/spreadsheet and all the updates and info. Can't wait to get off work tonight and am determined to take this knowledge you've shared and start from Feb 1st putting it to work. You do an excellent job communicating the information. Appreciate it all! Have a great week =)
I sold couple of puts, little bit later after you and on same levels and I am doing well. I am limited by my margin so I have only 3 positions but for Jan 19/2024. I am just wondering how long I should hold them. I checked the calculator and seems that after some time or certain upside, the profit is limited. What is your take on that? Thanks for great articles every day, really keeps me to have clear view on the market without noise.
The question you pose is interesting bc I don't know your situation. For me, I close when the margin required isn't worth the total return left. That is the answer and for every person that is different. If it requires $100k margin and my total return is $2000 is it worth it? No.
OK, I didnt think much about it that way, would be nice to have some video or article about this risk management :)
For example, I have one TWLO Jan19'24 40 Put sold, so far my Unrlzd P&L is +118.64 and Margin Impact is 610.36. Possible max return is $611.00 so it seems like a good to hold it still and let the time pass for decay. I know it might sounds silly this question but I just need to explain it myself to be sure that I understand the risks :) Thanks for your review.
The risk Simon is you would have to go long 100 shares of TWLO at $40 - $6.11 so $33.89.
The stock is $60 this morning. If you do go long its at a 50% discount today, that's your risk. Your risk is $33.89/share. I can't manage how much you want to risk but you know your goals and where you want to buy and sell. If you could buy TWLO for $33.xx today would you? That is the question.
Right, that makes more sense to think about it this way. I honestly don't know if it is a good buy today for $33, it can go even lower but it is a lever from FEB 2018 so not that bad. But I would try to sell the calls on it as you suggest :) My question was more like what is desired return on put sold to close the position, I am on total return of 20 %. But I guess that is more of a question how much I am willing to risk and gamble.
Correct I can’t answer that for you
Love the new tracker/spreadsheet and all the updates and info. Can't wait to get off work tonight and am determined to take this knowledge you've shared and start from Feb 1st putting it to work. You do an excellent job communicating the information. Appreciate it all! Have a great week =)
Thank you :)