ThetaTactics

 Hi readers! This is another update on my options trading account. On Wednesday, I entered a QQQ at-the-money straddle. Here is the picture of the trade details, such as price and breakeven points: Here is a picture of the trade a couple of minutes after I made it: After a couple of minutes, QQQ had started to move more, and it started to move to the upside, which is why the long call was making money.  Today, QQQ was at 376.86, which is awesome, as QQQ is continuing the trend upward. Keep in mind that the QQQ straddle strike price was 372, so this is a huge increase to the upside in just 2 days. Also, the breakeven point to the upside is 387.98, so if this trend continues, the straddle will definitely profit by the time of expiration. Also, the expiration cycle for this straddle is September 29, 2023, so the straddle still has a good month until expiration.  I am planning to just wait and see what direction QQQ moves in. Of course, if QQQ starts moving a lot to the upside, I would sta

 Hi readers! This is just another update on my account position. Here is a picture of my account right now: So a few days ago, I checked my account and saw that QQQ stock had made a very huge move to the downside, which I was very pleased to see. The price went below the breakeven point to the downside, so the straddle was making money. When I saw QQQ going down, I bought some short calls to make some money. I am planning to close the short calls at market, and that would leave me with a 4,000$ profit on the short calls alone.  I know that QQQ is at 364.05 right now, which is way below the downside breakeven point, but I am thinking of going back to a delta neutral position, and hedging myself against a big move to the upside. The deltas on my long calls are about 50, and the deltas on my long puts are about -800, so my overall delta for the position is -750. As you can see, my delta is way on the negative side, so I need to do something to bring my deltas back to around 0, and the pur

  Hi readers! This is just an update on the QQQ straddle from the last post.  In the last post, I mentioned that I was going to short some calls to offset some losses on the spread at that time. Fortunately, the price of QQQ actually moved from last post. Last post, it was at around 382, and right now it is at around 372, which shows a huge jump to the downside. This is why I haven't made any adjustments to the spread, as the stock is showing some movement. I am not planning on making any adjustments right now, as if the stock continues to go down, then the straddle will eventually make money. To the downside, the breakeven point is 367.7, so QQQ has to go down just another 5$ for the straddle to break even.  However, if QQQ starts to go up again, or stops moving for a while, I will have to make some adjustments to the position. I know I said that I will short some calls, but I am actually planning to short some puts instead to add positive theta to my position. It will also bring

 Hi readers! Today I will be talking about a spread that I made on my trading account.  Here is a photo of my account right now: I did roll over my previous options, since they were not profitable. I made a long QQQ straddle at strike price 382.5 last week, and to make money on this trade, the stock QQQ has to either go down in value enough to cover the premium of the spread, or up in value enough in value to cover the premium of the spread. I paid about $14.80 for each spread, and I bought 10 of them, so in total it cost $14,880. The breakeven points for this spread would be $397.3 to the upside and 367.7 to the downside. The breakeven points are a bit wide because the spread cost relatively more than other straddles.  Currently, QQQ is trading at 382.79, and that is a good sign, since I bought the straddle ATM, meaning QQQ was at 382.5 last week. This spread expires at August 25, so QQQ has to make a bigger move before then. I am thinking of buying or selling another option to help m