r/thetagang
Trades I took today as an option seller (06/05) with reasons
Option seller closed CRWV calls for profit; views market dip as technical/profit-taking with SPX support at 7,350.
- Market decline attributed to temporary factors like profit-taking and expiry rather than fundamental deterioration.
- Strong technical support identified at SPX 7,350 suggests limited downside risk.
- Positive job data indicates underlying economic strength despite rate hike fears.
- Higher-than-expected job reports increase speculation of potential interest rate hikes.
- Introduction of new tariffs poses a macroeconomic headwind for market sentiment.
- Recent rally may be exhausted, leading to continued short-term volatility or correction.
Trades I took today as an option seller (06/05):
Closed Position
- CRWV → $120 Call (opened on 06/04), premium 1.90 → closed at 0.45. Net premium profit = 1.45 (\~76% of premium captured, \~1.2% of capital). Opened this yesterday but because of today's market fall was able to recover most of the premiums.
New Positions
- No new Positions today
My thoughts on today's market fall
For me the fall was a combination of 1. Profit taking after a rally 2. Job Reports coming in higher than expected (which is good but raises a speculation that interest rates may be upped) 3. Introduction of new traiffs 4. Expiry.
SPX has a support at 7,350. We closed at 7,383. I would expect the market to touch that support and come back from it. None of the news seem big enough for the market to continue bearishness. Do let me know your thoughts on this!
I pin my trades to my profile and have also added the Excel file to my full list of positions in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on today's positions. What are you guys wheeling or watching right now?
PS: Not financial advice. Do your own research.
Whenever there's a large drop like this, the next trading day there is usually a rebound. I would like to see a little bounce on Monday, possibly followed by your drop to 7,350. But I think you're right that it should climb back up next week.
Usually Wednesday to Friday if it does. Small mini rallies. I use the 4h chart Macd to see if it crosses which indicates bottom.
The tech sector is getting smashed right now. Especially if you held MU.
I sold MU puts, 950, 925, 870. 950 and 925 assigned, average cost 940. Its now worth more than I bought for, I made 10k premium, and wheeled it today for a other 14k premium of 965 and 975 strikes which will net another 6k of gained equity assuming assignment. I am a cat.
Yeah, but that's what's mainly in the S&P so it's anything in there. I'm pretty sure that what happened on Friday happened because the jobs report caused people to fear interest rates will go back up, which impacts bond yields and a loss of faith in stocks. Once people get over that we'll be okay for a bit again.
Yeah but the bonds were still fine. Seeing MU make such a massive correction was really heartbreaking.
Look at MRVL
Some of us STO 185p July 15th and collected over $4.50
That’s about 30% below where it’s trading.
This was a long post for no new trades