r/thetagang
Trades I took today as an option seller (06/09) with reasons
Option seller closed BE calls for profit, holding ITM puts on OUST, AAOI, and IREN while expecting SPX to consolidate.
- SPX is holding the 7,350 support level, indicating market consolidation and stability.
- Successfully captured premium profit on BE calls by closing early to manage risk.
- Holding in-the-money put positions on OUST, AAOI, and IREN exposes the portfolio to assignment risk near expiration.
Trades I took today as an option seller (06/09):
Closed Position
- BE → $240 Call (opened on 06/01), premium 9.40 → closed at 7.40. Net premium profit = 2.00 (\~21% of premium captured, \~1% of capital). Closed this position early to free up capital and prevent a potential margin call.
New Positions
- No new Positions today
My thoughts on the current market
As mentioned in my previous post SPX is holding the 7,350 support. It remains in a state of consolidation in the range of 7,500 to 7,350. My put positions in OUST, AAOI and IREN which are to expire this week are ITM but I am not rolling or closing anything just yet. I will wait and watch as none of them are too far off from strike.
The Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?
PS: Not financial advice. Do your own research.
I have quite a bit of IREN. Good long term company. Does feel like we are getting a bit of consolidation of the neocloud names. Iren seems to not be going after the big long term contract instead going for hourly rate as the demand for compute is so high.
I sold 200 puts 6/18 NBIS.
I followed on the MOD trade but at 260 for 6/18
Closed out a 150$ call 6/18 NOW
I also sold a 80 put 7/1 for HOOD.
Market feels jittery right now.
A single call was the difference between a margin call?
BE is $24,000 x Number of Contracts
How many puts and how leveraged are you that margin call was a question?
Also have a ITM IREN put for 6/26. I’d be fine with assignment, but maybe it rebounds a bit by then.
Yes still have DTE left so I would expect market to recover a bit by next week.
closing the BE put to dodge a potential margin call is the move most people get wrong, they hold and hope and then get force closed at the worst tick. taking 21 percent of the premium and freeing the capital is unsexy but its the right call when the alternative is the broker picking your exit for you. only thing id flag, if a single contract was the margin difference you might be running the book a little tight, one gap day and youre liquidating into weakness. how much buffer do you keep relative to that 7350 support youre leaning on, or are you sizing purely off premium?
This is a very valid point. I had multiple contracts of BE so closing that position made sense. Now I have some buffer to pass through this market phase