r/thetagang
SMH
Sold 4 SMH puts at $605 strike for 38 DTE, collecting $15.4k in premiums, happy to be assigned at a $35 discount.
- Willing to take assignment at a $35 discount to current market price, indicating long-term bullishness.
- High premium collected provides a solid downside buffer and income while waiting to enter the position.
- Acknowledges the recent drop in SMH, implying short-term downward momentum or volatility.
Today, I noticed the drop in SMH. I would like to own some SMH. In two accounts, I sold 2 puts each in SMH at the $605 strike 38 DTE. Over all 4 puts, I received $15,465 in premiums. I am okay with whatever happens. If I get assigned I get around a $35 discount per share on the stock. If my puts are not assigned, okay, I will keep the $15k.
That’s a juicy premium.
Idd maybe toss in a spy put or two at 0.1 delta, just in case we have a meltdown so you don’t end up hosed on the trade. Shouldn’t be more than 200/300$
Soo, what’s the point of the post?
GJ I guess?
it was a response to "What are your moves today?"
You saw a post titled "What are you moves today?" and you responded to it by making a new post?
these people are hard to talk to lmao
Oh okay, my apologies then!
15k in premium on those is a fat cushion, you're fine on the assignment math at a 35 discount. the thing i'd watch isn't the assignment, it's that you've got the same ITM semi delta running in two accounts at once, so if smh keeps sliding on the oil/geopol tape your real exposure is double what either screen shows you. i run a couple accounts too and the only reason i don't misjudge it is seeing the blended delta in one place instead of eyeballing two brokers, been using thetaedge for that. are you treating the two as one position or managing the rolls separately?
Separately. Actually as 4 positions, 2 in each account. One account is IRA and the other PM. I don't expect to do loss harvesting but also consider the effect of having the same ticker in multiple accounts has.
Good call! I don’t know if you’ll get assigned as I think the price action was bullish today even though it looked bad.
Nice trade either way
That is a hugely optimistic take that ignores geopolitical risk, namely oil supply
ITM at the moment but there are 38 days left.
38 days is long enough for semi to bounce back. chill mate
Well this has not aged well and it's only been 8 hours
I will mange around 20 DTE. As to optimistic, perhaps. I am not concerned. I have been accumulating large amounts of FSELX since late 2024 which have nearly doubled. SMH and FSELX are essentially the same. I cannot buy FSELX on Tasty so I used SMH.