ThetaTactics

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Hi Readers! In this Trade Talk post, I will be talking about what changes, such as new positions and adjustments, have happened in the past week in my options trading portfolio. Here is the update: Tuesday (2/20/2024):  Before I talk about the updates, I will just briefly recap my existing positions. I had a QQQ Long time spread, and a SPY long straddle, both spreads being ATM at the time of purchase. These spreads have gone many adjustments throughout the week before this week, so please keep that in mind.  Now I will get into the actual adjustments I made on Tuesday. First off, I had noticed that the SPY Long straddle was not doing so well, as it was at a loss of around $1000. However, SPY had made some movement, within the breakeven points unfortunately. I was also incurring daily decay (theta) since it was purely a net long options position. So, to cover that loss, I decided to short an SPY Straddle at a closer expiration date. The short straddle was in the Feb 26 expiration cycle,

Hi readers! This is the Strategy post, where I will be explaining options trading to those who are uneducated on trading options. In this week's post, I will be going over some important options trading terms. Here they are: 1) Call Option : We already went over this in the previous post, so I will briefly re-explain the term. Call options give the holder to buy the underlying stock at a certain predetermined price. Remember, call options are profitable only if the underlying stock moves above the pre-determined price at expiration. 2) Put Options: They are similar to call options, except holders have the right to sell the underlying stock at the pre-determined price. Put options are only profitable when the underlying stock moves below the pre-determined stock at expiration. 3) Long vs. Short: Long simply means you own something, and short means you are selling something. Thus, a long position means you own options and a short position means you owe options. 4) Underlying Stock: S

Hi readers! This is the Market Analysis post, and I will be talking about my predictions on what will happen to SPY and QQQ in the upcoming week. At the end of the post, I have a small alteration to the upload schedule that I would like to talk about. First, here is the Market Analysis post: In the past week, QQQ has had a big dip. First, on Monday, it started going down, starting the day at around $439 and ending at around $436. Then, on Tuesday, QQQ opened at around $427, dropping around $10 just on opening. Then, QQQ went back up to $430 in the first 2 hours on Tuesday and then proceeded to drop back to the $427 price range, which was actually a key supply zone. This key supply zone had been respected various times in the past 3 weeks, as QQQ had bounced off of it 3 times previously. Furthermore, that zone was a resistance level before, which QQQ rejected 3 times in late January. Anyways, going back to the previous week, on Wednesday, QQQ opened back up at around $430, and stayed th

Hi Readers! In this Trade Talk post, I will be talking about what changes, such as new positions and adjustments, have happened in the past week in my options trading portfolio. Here is the update: Monday (2/12/2024):  On Monday, the first thing I did was close out of the AMD position, which was in profit by a couple hundred dollars! I also opened two new positions, a long ATM straddle on SPY @ $500 strike price and a long calendar/time call spread on QQQ @ $435 strike price. The SPY straddle was in the March 01 expiration cycle, and the QQQ time spread was in the March 01 and February 23 expiration cycles. Wednesday (2/14/2024): On Wednesday, I made a lot of adjustments on the QQQ and SPY positions. First, since QQQ had dipped, the short calls were way out of the money and in profit and the long calls were not profiting. So, to tighten the spread, I closed out of the long $435 calls and bought the $432 calls. In case QQQ made a huge move upwards, then I could make a little extra profi

Hi Readers! In this post, I will be analyzing the charts for AMD and QQQ, and I will be talking about what might happen to them in the coming week. Here is the update: QQQ has reached a point of consolidation, at the range of $432.5 to $433.5. Previously, in the past week, QQQ had bounced up and down between $425 and $429. Since QQQ has reached a point of consolidation, it could either spike up or down, and since QQQ has been on an overall up trend, I predict that QQQ will spike up. For AMD, it has also been consolidating for the past 2 days, around the price of $171 to $172. Since AMD has also been on an overall up trend, I think that AMD will go up to its previous high point, at around $178. This is because AMD went up from $167 to $178, and then back down the $167. Then, AMD slowly started to pick back up, by going up, consolidating, going back up, and then consolidating.  This is the Market Analysis post! I know the post was short, but there was not much to discuss regarding what I

Hi readers, I hope everyone is doing well! This is the post, where I will be doing a recap of what happened this week with the stocks and my options position. ** A side note: Whenever I mention "the day", I mean trading hours. I wanted to mention this to avoid some confusion!! Tuesday (February 6): By the end of Monday, QQQ had come back to its supply zone ($428 - $429) and had ended the day at that area. On Tuesday, it actually respected that area and rejected it, going back down to around $425.50. Throughout the day, it had went up a little and came back down, and near the end of trading hours, it started to come back to the previously mentioned supply zone. QQQ had ended the day at around $427.55. This meant that my QQQ position was still profiting a lot, as my calls and short puts were WAY MORE in profit than the puts I had on as a hedge. My position was profiting around $15,000. By the end of Monday, AMD ha come back all the way down to its key area of consolidation and