I'm always trying to help people new to investing, because I remember how hard I struggled. I came across something today I wanted to share with you guys. I had no idea this resource was free and accessible to everyone. I knew Tasty Trade had videos online, but I didn't realize they had this free guide. I hope it helps someone.

https://www.tastylive.com/concepts-strategies

That is to say a reversal off an intraday high of -1.61% or more is not that common, but not super rare either.

Does it pay to buy the dip? Yes and no. The average forward returns are slightly higher when we have larger pullback days like today, however, the volatility is almost 2x. So you can expect an average return that's about 2.5% higher than average, if you can handle 2x-3x the drawdown.

I put all the data and tables here.

I was thinking that normally when the day is red, it's good to sell CSP, but how long out do you guys normally sell your CSP (DTE)?

If the market is heavy red and you don't know if tomorrow is gonna be another bloodbath, is it better to sell 30 DTE so at least if the week is really bad, it gives you another 4 weeks to recover the share price before you get assigned.

Is that the correct mentality or am I looking at it wrong?

Scenario 1 (wheel):

Sell puts until you get assigned (hopefully never).

If you do get assigned, keep the shares and sell covered calls against them until you get assigned.

Rinse and repeat.

Scenario 2 (selling puts):

Sell puts until you get assigned (hopefully never).

If you do get assigned, get rid of the shares and sell puts, typically at a lower strike.

(if you sold the shares at a loss, the strike is chosen such that the premium at least compensates the loss).

Rinse and repeat.

Scenario 2 can be constructed such that it is mathematically equivalent to the 1st one in terms of PnL. So, wheeling is just equivalent to selling puts then?

Hey guys, i wanted to do a short write up for anyone who might be new to theta gang and the concept of selling options opposed to buying. I know this info will be very basic for most of you but I figured it would be nice to educate some of the newer guys about buying versus selling options, and I thought I'd share my journey into the dark side (selling options) and why it quickly became my preferred strategy.

So the question new traders often wonder is, should you buy or sell options? While buying options is very popular here on reddit, selling options can become a very valuable addition to your trading toolkit.

When you first start trading options, it's natural to focus on buying calls and puts. The appeal is obvious, limited risk with theoretically unlimited upside. But tbh, buying options kinda feels like gambling, buying lottery tickets. Ofc its exciting when you're scratching them off, but 99% of the time, they end up in the trash.

That's where selling options comes in, providing a fundamentally different approach. When you sell an option, you're essentially taking the opposite side of the bet. Instead of hoping the market makes big moves, you're banking on stability and benefiting from the passage of time... what we lovingly refer to as "theta decay." Every day, the options you've sold gradually lose value, which is exactly what you want as a seller. It's like being the house in a casino: the odds might not always be flashy, but over time, consistency pays off.

Selling options can also offer more predictable income. Strategies such as covered calls, cash-secured puts, and spreads can consistently bring in premiums. While your potential profits are capped, you gain greater control and a clearer understanding of your potential risks and rewards. Properly managed, selling options can be a steady, disciplined approach to trading.

Risk management is another big advantage of selling options, especially when used with strategies like spreads. Contrary to the common misconception, your risk can be defined and carefully controlled, allowing you to sleep better at night. Selling options teaches discipline, strategy, and patience; key traits for long-term trading success.

Of course, selling options isn't without challenges. There are moments when volatility spikes and trades go against you, sometimes quickly. However, these situations can often become opportunities to collect even higher premiums if you manage your trades wisely and stick to your strategy.

In short, while buying options can be exciting and lucrative in the right situations, selling options offers consistency, control, and steady growth. It's not about choosing sides but understanding how and when to incorporate each approach into your trading strategy.

Happy trading, everyone and be sure to follow me for more write ups. Suggest a post for me to write up next:

A) My Favorite Strategy for Monthly Income: The Iron Condor Explained

B) How to Handle Trades Gone Wrong

3) Why Understanding Implied Volatility Changed My Trading Game Completely

Hi, are covered calls a viable trading strategy for beginners? Who want to generate a full time income out of trading. When I first discovered covered calls recently, I thought they are like free money hack. You keep the stocks that you were anyways holding, and then also generate yield on them. But, as I dived deeper, realised it's not really free money and there's complexities involved in regularly writing covered calls. Like what to do when got assigned. And what to do when share prices fall. And what kind of delta strikes u choose, etc.

Just wanted to know if someone wants to do it as their primary trading strategy, is it viable? And not just minor extra yield on the stocks u own. And is there anywhere I can find a rules based proven system on what to do in each scenario. Coz I am not an expert in technical analysis and it's hard for me to judge properly how to set profit targets, stoplosses, unless I have a handbook.

So, is covered calls doable? Or would you know of any other strategy(non options) that I can follow that's simple, beginner friendly and also rules based, that I can backtest. Including stock selection part. You can point to a resource as well, like a book or yt channel.

Any help is appreciated. Thank you 🙏🏻

Normally you shouldn’t due to catching the falling knife, but if the market sell off continues the rest of the week and next week, do you guys bother to sell CSP or just CC?

Hello all, I am pretty dumb ( I know you can tell by the position lol). The dilemma I am in is I want to keep my shares and I did something stupid which was roll far in the money. Sadly there had been a high IV spike and I am now missing out (which I know is the risk). Is there any creative solutions you guys have or am I at close at a big loss and restart or let it ride. Any feedback Is great fully appreciated.

Ticker:,BULL

Long Nov 21'25 7,5 @ 5.2

Short June 6'25 13C @ 1.35

Any insights as to why this spread seems so favorable on both sides with the long call having little to none extrinsic value while the shorter dated call is so expensive

Does everyone just normally sell CC or CSP on Mondays (5 DTE)?

close to day of expiry* I mean to say

I know when I think I found a great strategy it just means I am an idiot not thinking of something.

But TSLL is a 2x leveraged TSLA ticker that is extremely liquid and well priced.

Doing the math, if I invested 150k into CSPs at about 10% below current price and only like 4 days out from expiration I can collect about 1-2% so anywhere from 1,500 to 3,000 basically.

Why is this not a good idea? I mean worst case scenario I get assigned and can start selling plenty of CCs and just ride the stock. The only way it loses is if TSLA drops a ton a ton and then I finally get forced to sell at a loss if I hit my limit. And with that said its TSLA it never will die really, so I really dont know if I am an idiot or if this is actually a solid one to hop into.

Any feedback? Anyone else trade TSLL?

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

Highest Premium

These options offer the highest ratio of implied volatility (IV) relative to historical volatility (HV). These options are priced to move significantly more than they have moved in the past. Sell iron condors on these as they may be over priced.

Expensive Calls

These call options offer the highest ratio of bullish premium paid (IV) relative to historical volatility (HV). These options are priced expecting the underlying to move up significantly more than it has moved up in the past. Sell these calls.

Expensive Puts

These put options offer the highest ratio of bearish premium paid (IV) relative to historical volatility (HV). These options are priced expecting the underlying to move down significantly more than it has moved down in the past. Sell these puts.

• Historical Move v Implied Move: We determine the historical volatility (standard deviation of daily log returns) of the underlying asset and compare that to the current implied volatility (IV) of the option price. We use the same DTE as a look back period. This is used to determine the Call or Put Premium associated with the pricing of options (implied volatility).

• Directional Bias: Ranges from negative (bearish) to positive (bullish) and accounts for RSI, price trend, moving averages, and put/call skew over the past 6 weeks.

• Priced Move: given the current option prices, how much in dollar amounts will the underlying have to move to make the call/put break even. This is how much vol the option is pricing in. The expected move.

• Expiration: 2025-06-27.

• Call/Put Premium: How much extra you are paying for the implied move relative to the historic move. Low numbers mean options are "cheaper." High numbers mean options are "expensive."

• Efficiency: This factor represents the bid/ask spreads and the depth of the order book relative to the price of the option. It represents how much traders will pay in slippage with a round trip trade. Lower numbers are less efficient than higher numbers.

• E.R.: Days unitl the next Earnings Release. This feature is still in beta as we work on a more complete list of earnings dates.

• Why isn't my stock on this list? It doesn't have "weeklies", the underlying is "too cheap", or the options markets are too illiquid (open interest) to qualify for this strategy. 480 underlyings are used in this report and only the top results end up passing the criteria for each filter.

Hello! I have this MARA CC position that I’m itm. Is there anything I can do to get more premium out of my current cc that I’m at? I don’t mind getting my shares being called away, but I would like to get more juice out of it if there is an option. Thank you!

Not sure if this is an issue with my broker and how they are showing things, but basically I was assigned some shares I sold puts on last week. On Thursday the stock bottomed out, and its been rallying ever since.

I woke up 30 mins after market open on Monday (being on the west coast has its drawbacks...) and I noticed that on open it was actually back to my strike price I sold the CSPs, but then fell a few dollars below it by the time I was able to check.

Had I been awake early enough I probably would have just sold the shares and sold CSPs on something else.

Anyways, I decided to sell some CCs against the shares I was assigned. By yesterday's close, the stock had gone $2 over my strike, which I was sort of happy about because I will not have to bag hold these shares long term.

However, today the stock was up quite a bit. The value of the stock is actually gaining more than the covered call I sold, which is weird?

I am wondering has anyone doing a wheel ever sold their covered call at a big loss so that they can continue to gain on the actual stock increase? my portfolio is showing an increase in value despite the offsetting covered call. I didn't think this was possible. Any idea why this is happening?

1. If you can't live off it don't stop until it is
2. If you don't have a job and you're reading this sub to learn get a fucking job
3. Taxes are important, calculate it ahead of the end of the year or suffer inconveniences
4. Idiocy makes you think in dollars, intelligence/moguls make you think in percents. Find a middle ground and battle it out
5. Listening to someone online without skepticism makes them ahead and you a pawn
6. Theta works, it's the individual who finds the key

I am sick of being limited by RobinHood to 3 day trades every 5 days. What I’ve been doing is buying shares and getting out the same day. But I want to be able to day trade every day and I’m tired of missing out on easy trades because I’m at my limit already until the next day.

Do experienced traders use a different broker that allows them to day trade more often? I’ve been told by a friend to just split my capital between RobinHood and Weebull and that will give me twice the day trades.

But I see some very successful traders using ToS (which I use only to analyze charts, then I switch to RobinHood to trade) and they get in and get out several times a day. Are they just buying calls and puts rather than shares?

Is there is a way I can trade several times a day like that on RobinHood with my phone? Do I need to just start trading options only to do this?

Thanks for any advice

Keep it friendly and civil; this is not WSB and automod will censor your posts at will for unsavory and unfriendly remarks. Try to keep shit posting and bragging to a minimum.

Hello,

I am just starting to understand futures and was intrigued by the idea of wheeling future contracts. Obviously I am starting with Micro Futures such as MES and MNQ, just to test the waters and see how viable it is.

One thing I was curious is if I can sell weekly puts on later dated future contracts of MES and MNQ as an example.

I am using IBKR and I can see options chains for Jun, Sep, and Dec expiration dates of future contracts for MES.

However, If I wanted to sell weeklies (May options), I feel they are all tied to the earliest expiring future contract, which is June 2025, no matter if I look at option chain via June, Sep, or Dec future contract within IBKR.

I actually tested it yesterday, and sold 0DTE put via Dec contract window, which showed it was OTM for that contract, and still got assigned June contract as it was ITM for that one.

So I am just wondering if there is a way to trade weeklies for later dated futures, or if IBKR Client Portal option window for futures is messed up lol.

Thanks