mortlightman 7:21 am on Friday, January 26, 2018
Tags: Fuzzy ( 414 ), Hedge ( 75 )

MU

BTO Feb 16 43/43/41 1.29 #Fuzzy
STO Feb 2 45 .49 #Hedge

fuzzballl 7:38 am on Friday, January 26, 2018

I like it…keep forgetting about good ‘ol MU. Great premium next week too. Is that because of AAPL earnings?
- Bobbie 7:45 am on Friday, January 26, 2018
  
  I’m still having some trouble with managing these trades. Would you explain that Fuzzy? It would be most appreciated!
  - fuzzballl 7:57 am on Friday, January 26, 2018
    
    Once I get the trade set and start selling the weeklies I just watch a couple things. If no rally in the stock then keep selling. If the stock starts rallying then monitor the overall delta of the position. Since a big rally can cause the weekly short deltas to exceed the long deltas of the core the trade will start showing losses.
    
    As the overall delta approaches zero it then becomes the choice of rolling the weekly out and up or booking the profit and either resetting a new one higher or moving along to greener pastures.
    
    If the stock really implodes then weekly selling / delta management remains important. At this point you’ll be selling weeklies below your core position so a whipsaw rally could get you into negative deltas at a point below your core (to me this is the biggest risk to these trades) When I’m selling weeklies below my core I get very defensive and only sell what’s required to get back to even or even possibly using call spreads instead.
    
    That’s a few of the things I watch. I’m sure other can point out some issues they’ve noticed as well.
    
    Good luck!
    - Bobbie 7:58 am on Friday, January 26, 2018
      
      Thank you Fuzzy!
  - fuzzballl 8:02 am on Friday, January 26, 2018
    
    This whole delta management thing is where the Think or Swim Analyze tab really shines. I can plug in the MU trade and I see based on my exact position the trade will go flat deltas at 44.95 with a 915 profit on expiration day of my weekly on a 10 lot. Of course that changes a little as time goes by but it’s great way to estimate where the thing could be heading.
    - mortlightman 8:06 am on Friday, January 26, 2018
      
      Thanks, will try to follow it.
    - john4419 7:35 am on Sunday, January 28, 2018
      
      I use Schwab for trading and was wondering if any other members use the same platform! if so do you know of anything built into their platform which resembles the Think or Swim Analysis tab? I cannot find anything and would appreciate any feedback.
      
      em>fuzzballl If the answer comes back negative do you know of a long winded method to work out the same thing?
- mortlightman 7:47 am on Friday, January 26, 2018
  
  mortlightman
  
  Chip Companies seem to be having good earnings (INTC & WDC)
Bobbie 8:12 am on Friday, January 26, 2018

Fuzzy – how did you enter this MU trade? Sorry I forgot.
- Bobbie 8:16 am on Friday, January 26, 2018
  
  Never mind I see it.
- fuzzballl 8:18 am on Friday, January 26, 2018
  
  Yep…sorry for my long winded setups on these. I screenshot the setup and set it aside as a reference when going back in to sell the weeklies. As time goes by I’ll recalculate max loss / time to go / weekly sales needed.

Leave a Reply Cancel reply

s: search
c: compose new post
r: reply
e: edit
t: go to top
j: go to the next post or comment
k: go to the previous post or comment
o: toggle comment visibility
esc: cancel edit post or comment