LD Lossdog Research
strategy

premium selling

7 matching records.

Trade idea

N/A premium selling

In high volatility environments, selling out-of-the-money puts is a viable strategy to capitalize on elevated premium prices. The speaker emphasizes that this approach is straightforward and leverages the mechanics of premium selling, which has been refined over years. The trade is managed at 50% or 21dt, and the strategy is most effective when the market is getting 'a little cheaper' (i.e., volatility is moderate but not extreme). This is a contrarian approach, suitable for markets with high volatility, where put prices are high and basis is low.

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Strategypremium selling
Assetoptions
ExpirationN/A
Time horizonshort-term
Entry / triggerhigh volatility (VIX > 20)
Target / exitmanaged at 50% or 21dt
Invalidation / stopmarket conditions shift to low volatility or significant price movement
SpeakerTom
Structure / legs
  • out-of-the-money put
Risks
  • Market conditions shift to low volatility
  • Significant price movement
  • Liquidity issues in options markets
shortshortpremium sellingshort-termoptions
high confidenceVerify in video at 02:02 ↗
Trade idea

N/A Premium selling

The speaker and Mr. Sharing both sell premium as their main strategy, focusing on strategies that provide positive decay. They mention short strangles, short call spreads, and put spreads as examples. The strategy is based on the current low volatility environment, which makes premium selling more attractive.

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StrategyPremium selling
AssetN/A
ExpirationN/A
Time horizonN/A
Entry / triggerVolatility is cheap
Target / exitPositive decay
Invalidation / stopN/A
SpeakerMr. Sharing
Risks
  • Market volatility could increase
  • Incorrect assumptions about decay
N/Apremium selling
high confidenceVerify in video at 55:15 ↗
Trade idea

Trade idea premium selling

The speaker advocates for a premium selling approach, which involves selling options with a capped upside and theoretically unlimited downside. This strategy is suitable for those who are comfortable with the risk and can help stay engaged in the market. However, the speaker acknowledges that this approach may not work for everyone and that the effectiveness of such strategies can vary based on market conditions and individual risk tolerance.

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Strategypremium selling
Time horizonshort to medium term
Entry / triggerpremium selling approach
Invalidation / stopcapped upside and potential for downside
SpeakerGary
Risks
  • capped upside
  • potential for unlimited downside
  • market volatility
premium selling
medium confidenceVerify in video at 43:20 ↗
Trade idea

IWM premium selling

The speaker has been short premium in IWM throughout the year, but it has not been a good trade so far. The speaker suggests that IWM has been the worst performer among major indices, and the strategy is to collect premium by selling calls. The thesis is that the market rally may continue, and IWM could be a good candidate for premium selling if it continues to underperform.

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Strategypremium selling
Assetindex
ExpirationAugust
Time horizonshort-term
Entry / triggermarket rally
Target / exitpremium collection
Invalidation / stopif the stock continues to underperform
SpeakerSheridan
Structure / legs
  • calls
Risks
  • Market downturn
  • Underperformance of IWM
  • Volatility in the market
shortindexshortpremium sellingIWMshort-term
medium confidenceVerify in video at 54:39 ↗
Q&A

Is emotional neutrality an advantage, or do you still need a thesis on volatility, liquidity, or the underlying to manage the trade well?

Emotional neutrality is an advantage when selling premium on both sides with no directional bias. It allows for a more balanced approach to managing the trade.

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Actionable takeawayEmotional neutrality is beneficial when selling premium on both sides without a directional bias, as it allows for a balanced approach to trade management.
premium sellingliquidityvolatility
high confidenceVerify in video at 14:08 ↗
Q&A

What was the expected move for the stock?

The expected move for the stock was initially thought to be around $12, but it fluctuated, ending at $12 again. The speaker noted that the stock did not move significantly, which affected the effectiveness of the premium selling strategy.

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Actionable takeawayThe expected move is a critical factor in premium selling strategies, and its accuracy is essential for the success of such trades.
premium sellingNVDAexpected move
high confidenceVerify in video at 00:42 ↗