LD Lossdog Research
strategy

selling out-of-the-money puts

3 matching records.

Trade idea

Micro Strategies selling out-of-the-money puts

The speaker suggests selling out-of-the-money puts on Micro Strategies due to the high volatility of the stock, which is tied to Bitcoin. The put strike price is set at 80, with a premium of 505-520. The speaker estimates an 85% probability of profit due to the low delta (15 delta) of the put, indicating a high likelihood of the stock price remaining above the strike price. The trade is considered a low-risk, high-reward opportunity with a favorable risk-reward ratio.

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Strategyselling out-of-the-money puts
Assetstock
Expiration43 days
Time horizonShort-term (43 days)
Entry / triggerMarket conditions as of the time of the transcript
Target / exitCollect premium from the put sale
Invalidation / stopIf the stock price rises significantly above the put strike price
SpeakerPhoenix in the Dog Pound
Structure / legs
  • 80 puts
Risks
  • Significant downside if the stock price drops below the put strike price
  • Market volatility could affect the effectiveness of the trade
shortEquityshortselling out-of-the-money puts
high confidenceVerify in video at 52:44 ↗
Trade idea

ZN selling out-of-the-money puts

The speaker is selling out-of-the-money puts on ZN (109 or 108.5) and buying a call spread on 109-110, based on low implied volatility and a directional bias. The trade is expected to profit from the directional movement of the bond market, with a focus on short-term expiration. The strategy is based on the speaker's default approach of using delta ranges and expiration periods.

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Strategyselling out-of-the-money puts
Assetbond
Expiration45 days
Time horizonshort-term
Entry / triggerimplied volatility is low
Target / exitprofit from directional movement
Invalidation / stopif the market moves against the directional bias
SpeakerTom
Structure / legs
  • put on 109 or 108.5
  • call spread on 109-110
Risks
  • Market moves against the directional bias
  • Implied volatility increases
  • Liquidity issues in the options market
shortFixed Incomeshortselling out-of-the-money putsZNshort-term
high confidenceVerify in video at 1:04:00 ↗
Trade idea

Trade idea selling out-of-the-money puts

The speaker discusses selling out-of-the-money puts as a strategy, noting that it can be risky if the underlying asset moves outside the expected range. The example given involves Tesla, where the speaker sold puts despite not being bullish on the stock. The thesis is that this strategy can be effective if the underlying asset remains within the expected move, but it carries the risk of significant losses if the asset moves outside the range.

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Strategyselling out-of-the-money puts
Time horizonshort-term
Entry / triggerwhen the underlying asset is trading within the expected move
Target / exitthe strike price
Invalidation / stopif the underlying asset moves outside the expected range
SpeakerTom
Risks
  • significant losses if the underlying asset moves outside the expected range
  • market volatility
selling out-of-the-money putsshort-term
medium confidenceVerify in video at 40:27 ↗