SPY Options – Buying & Rolling

[Heather Cullen]

Options that meet the ITM requirements (less than 2% time value) change all the time. This is a discussion of the most suitable options currently.

[Donald Duck]

and this is the reply to the mickey mouse post

[George Halongton]

Testing

[Heather Cullen]

Right – Chat GPT has shown me how to make the text here bigger. A long drawn out process. It wants to give you as little as possible so you go throuh about 10 iterations before it works.
Frustrating.
Anyway, ignore this, it is a tes.
Just venting!!!

[George Halongton]

Why use the strategy of rolling options?

“Many options strategies require active management and unlike stocks, options expire–you can’t hold on to them forever. When an option reaches expiration, it’ll either expire worthless (if it’s out-of-the-money) or result in an obligation to buy or sell shares of the underlying security (if it’s in-the-money). Rolling your options prior to expiration may help avoid these outcomes, among other reasons.” Sources from Robinhood

[joseph bradley]

Hello, I was unsure where to ask this question, this chat seemed as good a place as any 🙂

In today’s market and charts looking the way they do. When entering our first DITM trade do we have a specific loss percentage that we are stopping at ? Or are we waiting for the out signal regardless ?

Thanks so much
Joe

[George Halongton]

We get out of the ITM trade when there is a Death Cross (50ma below 200ma). Thanks.

[George Henry]

Dear ITM Traders and Investors,

Please keep this thread alive and well by participating and contributing our ideas. Thank you very much and happy holidays.

Sincerely,
George Henry Halongton

[George Henry]

What Are the Key Points to Profitable LEAPS Calls?

When buying LEAPS Call options, we want to choose deep ITM, 0.90 delta, strike prices to increase our probability of profit. We also want to have more than 1 year to expiration to give the stock enough time to make the Call profitable.

Let’s compare deep ITM and ATM LEAPS Call options to see the impact of different deltas. Even though the 0.90 delta Call requires more buying power, the higher delta makes the option’s value follow more closely with the stock price movement. The lower strike price also gives us more room to profit and a better breakeven price.

Source

What are LEAPS Calls and How Do They Work?

[George Henry]

We also need to be aware of the increasing theta decay when the LEAPS Call is close to expiration. So we usually buy to close our trades around 45 days before expiration no matter what. So we can close our position when there is still enough time value in the trade.

[Author]

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