Finance/Crypto thread by @HertzyTrades

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Selling options, it might just be the best thing since, well, sliced bread.

I make thousands each month with options. It's not rocket science.

Here is my strategy in a nutshell👇🧵

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I sell options to generate cash in my various portfolios. I use the cash to buy high conviction companies or sell more options. 

I showcase my #RoadTo100k challenge portfolio daily.

Let's dive into the main strategies I use🔽

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Cash-Secured Puts (CSP):

An agreement to buy 100 shares of a stock at a specific strike price at or before the expiration date.

Collect a premium upfront by putting up collateral for potential purchase of the underlying.

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CSP Example: Sell to open $RKLB CSP

Collateral: Strike price x 100 = $4300
Premium: 1.75 x 100 = $175

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Covered Calls (CC):

An agreement to sell 100 shares of a stock at a specific strike price at or before the expiration date.

Collect a premium upfront by using your shares as collateral for potential sell of the underlying.

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CC Example: Sell to open $HOOD CC

Collateral: 100 shares
Premium: 3.70 x 100 = $370

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Days Till Expiration (DTE):

My sweet spot is around 30-45 DTE. This balances optimal time decay (Theta), sufficient time for a non-directional market assumption, and flexibility if trade goes against me.

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The Wheel Strategy:

This strategy blends selling covered calls with cash-secured puts to manage your positions effectively.

Entry: Start by selling cash-secured puts until you're assigned 100 shares.

Exit: Once you have the shares, sell covered calls until they're called away.

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The Greeks:

I aim for ~.25 Delta when I sell options.

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My Hard Fast Trading Rules:
Pick quality companies
Options chain…needs to have liquidity and weekly expiration dates 
Strive for stocks that can generate 20-40% APY on cash secured put premiums 
Use technical analysis… RSI, MACD, Bollinger Bands, SMA, identify support + resistance levels 
Close positions that are in profit before the expiration date when it makes sense.
Respect binary events

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Option Sellers Hangout:

I wouldn't be where I am without community networking. This is my go-to FREE group for everything option selling 👇

Option Sellers Hangout@optionsellersHQ

Welcome to the ultimate hub for option sellers of all levels.

📈 Learn & Grow
💬 Engage with Traders
📊 Trade Discussions
🎯 Market Updates
🤝 Supportive Community

Join today 👇
whop.com/option-sellers…

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Thanks for reading 🤝🫡

If you found any value, please share. My DMs are always open for questions.

- @HertzyTrades

Selling options, it might just be the best thing since, well,...

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