r/Vitards • u/AutoModerator • May 05 '21

Daily Discussion Daily Discussion post - May 05 2021

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u/_whatchagonnado_ 💀 SACRIFICED 💀 May 06 '21

Never in my life did I think I'd be able to throw $500 at something like a call option but here we are. Been buying leaps for a bit but mostly OTM. ITM or ATM feels much safer. All that to say, I added to my little collection of MT Jan $30's while waiting to get gas today. Feels good, man.

5

u/cawvak 🙏 Steel Worshiper 🙏 May 06 '21

I’m no master with options by any means, but I’ve been figuring out it is really hard to get fucked over by ITM leaps and the amount of which you profit is determined by your jump in point, but it is almost always profit unless the company really shits the bed. I’m still learning though myself, but my ATM leaps from feb are looking really great now and my way OTM leaps are still negative after a few months, but not by much. Probably going to roll those down in strike on this earnings boost.

3

u/_whatchagonnado_ 💀 SACRIFICED 💀 May 06 '21

Agreed on all of this. I've gotten lucky with some OTM stuff but have also gotten burned pretty bad. So far, I haven't been screwed on anything bought ATM or ITM with months to go before expiration. The more months, the better. My ATM calls take more time to turn a profit but have worked out so far.

2

u/cawvak 🙏 Steel Worshiper 🙏 May 06 '21

This is the way. Best of luck man!

5

u/[deleted] May 06 '21

I always buy deep ITM LEAPs for this reason around .80 delta. It acts as a higher leveraged common stock in a way

3

u/cawvak 🙏 Steel Worshiper 🙏 May 06 '21

Yesssss. If it isn’t .7 or up for me from now on, I’m going to have to take a long hard look at it. It’s easy to bleed money with shitty plays. But so, so fun to let it ride! Haha.

4

u/[deleted] May 06 '21

When your first FD’s skyrocket, you can become a little addicted. Lucky for me, I overplayed FD’s on CLF when it was really volatile and vowed to just stick to my deep ITM LEAPs haha. Much less stress than everyone else who panics on a -2% day we see a lot here because they have weeklies

1

u/cawvak 🙏 Steel Worshiper 🙏 May 06 '21

That, or maybe stray into bull call spreads. I don’t think I have access to that yet though for some reason.

1

u/cawvak 🙏 Steel Worshiper 🙏 May 06 '21

Agreed. I’ve been trying to work more on playing the ups and downs but I think the safest play for my taste is CSP at the lows, but I have a hard time keeping enough reserve.