Trade idea
SPCE selling puts
The speaker suggests that if you are bullish on SpaceX, you should consider selling puts as it could be a better entry point compared to buying at higher prices. The speaker also notes that the stock has settled back to its IPO price of 135 and may continue to trade below this level.
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Strategyselling puts
Assetequity
Time horizonShort-term
Entry / triggerIf the stock is trading below the IPO price of 135
Target / exitA rally in the stock price
Invalidation / stopIf the stock continues to trade below the IPO price
SpeakerThe speaker
Risks- The stock may continue to trade below the IPO price
- The speaker does not provide specific entry or exit points for trades
Trade idea
SPACEX selling puts
The speaker believes that the implied volatility of SpaceX is high, making out-of-the-money puts at $90 a good opportunity for selling puts. The speaker is not bullish on the stock but is long deltas, indicating a bullish stance on the underlying asset. The trade idea involves selling puts as a way to generate income, even though the speaker is not confident in the stock's long-term direction.
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Strategyselling puts
Assetequity
Expirationnot specified
Time horizonshort-term
Entry / triggerstock trading below IPO price
Target / exitnot specified
Invalidation / stopnot specified
SpeakerSpeaker
Risks- Potential for stock price to rise above strike price
- Implied volatility may decrease
- Market volatility could increase
Trade idea
UBER selling puts
The speaker suggests selling June 65 puts on Uber at a price of $52, assuming the stock is trading around $70. The rationale is that the stock is at its lowest point, and the put option could be a profitable trade if the stock price drops below $65. The risk is that the stock price could rise above $70, resulting in a loss.
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Strategyselling puts
Assetequity
ExpirationJune
Time horizonShort-term
Entry / triggerStock price at $70
Target / exitPrice below $65
Invalidation / stopPrice above $70
SpeakerAI
Risks- Price could rise above $70
- Market volatility
- Liquidity issues
Trade idea
Trade idea selling puts
selling puts in a solid company
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Strategyselling puts
Entry / triggerstock looks solid
Trade idea
Trade idea selling puts
software stocks are being beaten up and offer advantageous prices
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Strategyselling puts
Entry / triggerstocks that were grossly oversold
Target / exitadvantageous prices
SpeakerThe Bat
Trade idea
ZN selling puts
The speaker is selling June 108 puts in the ZN (10-year Treasury Note) futures contract for approximately 30 ticks. This trade is based on the expectation that the market price will not fall below the strike price of 108, allowing the seller to keep the premium. The trade is considered a short-term opportunity, and the speaker notes that the exact price at the time of writing is not specified, indicating that the trade is based on current market conditions.
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Strategyselling puts
Assetbond
ExpirationJune
Time horizonShort-term
Entry / triggerMarket price at the time of writing
Target / exit30 ticks
Invalidation / stopNot specified
SpeakerSpeaker
Risks- Market price could fall below the strike price, resulting in a loss if the put is exercised.
Trade idea
ZN selling puts
The speaker is selling June 108 puts in ZN (10-year Treasury Notes) at around 30 ticks. The trade is based on the expectation that the price will not fall below the strike price, allowing the seller to keep the premium. The speaker mentions a pop of 70% and an IVR of 37, indicating a potential profit if the market moves as expected. The trade is considered a good opportunity due to the high IVR and the potential for a significant move.
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Strategyselling puts
Assetfutures
ExpirationJune
Time horizon39 days
Entry / triggerwhen the put price is around 30 ticks
Target / exitpop of 70%
Invalidation / stopif the price moves significantly against the trade
Speakerspeaker
Risks- Market volatility
- unexpected price movements
- changes in interest rates affecting the underlying asset
Trade idea
ZN selling puts
The speaker is selling puts on the 10-year note (ZN) to gain exposure to a potential decline in interest rates. The strategy is based on the expectation that rates will decrease, which would increase the value of the note. The trade is considered bullish, and the speaker is willing to take on short delta to benefit from the anticipated move. The risk is that if rates do not decline, the put could be exercised, resulting in a loss.
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Strategyselling puts
Assetinterest rate
Expiration10-year note
Time horizonshort-term
Entry / triggerexpecting interest rates to decline
Target / exitinterest rates come down a little
Invalidation / stopif rates do not decline
Speakerunknown
Risks- Interest rates may not decline as expected
- Market volatility could impact the note's price
Trade idea
CRUDE_OIL selling puts
The speaker sells puts on crude oil, expecting the price to remain below the strike price. The speaker notes that the puts have a delta of 23, indicating a moderate sensitivity to price changes. The speaker acknowledges that this trade has been a losing one so far but believes that the market may provide better opportunities in the future. The speaker also mentions that the trade is part of a broader strategy of being short crude oil, which has been a long-term position.
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Strategyselling puts
Assetcommodity
ExpirationAugust
Time horizonshort-term
Entry / triggercrude oil price is below a certain level
Target / exitprice increase to a specified level
Invalidation / stopprice drops below a certain level
Speakerspeaker
Risks- the price could drop below the strike price
- the market could move against the position
- the trade could result in a loss
Trade idea
Hood selling puts
The speaker mentions selling 73 puts on Hood, indicating a short position. They also express a preference for buying Hood in the low 70s, suggesting a potential bullish outlook. The speaker's strategy involves selling puts to collect premiums, which is a common options strategy for generating income. The trade idea is based on the speaker's belief that the stock may not move significantly, allowing them to profit from the premium collected.
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Strategyselling puts
Assetstock
Expirationnot specified
Time horizonshort-term
Entry / triggermarket is at a certain level
Target / exitnot specified
Invalidation / stopnot specified
SpeakerSpeaker
Risks- Market volatility could lead to unexpected price movements.
- The stock could move beyond the strike price, resulting in a loss if the put is exercised.
Trade idea
yen selling puts
The speaker has been long yen for two and a half years and has been selling puts to collect premium. The rationale is that the yen has not had an uptick but still makes money because it doesn't go down enough to lose. The strategy is to sell puts to collect premium while maintaining a long position, which is effective in a range-bound market.
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Strategyselling puts
Assetcurrency
Time horizonlong-term
Entry / triggermarket is open and yen is being traded
Target / exitprofit from premium collected
Invalidation / stopif yen moves significantly against the position
Speakerspeaker
Risks- significant loss if yen moves against the position
- market volatility
Trade idea
NKE selling puts
The speaker discusses selling puts on Nike (NKE) with the intention of profiting from a potential rise in the stock price. The trade was initiated at a price of $43, with the puts sold at $2. The speaker acknowledges that the stock price dropped, resulting in a loss, and suggests that waiting for a better entry point might have been more effective. The thesis is that selling puts can be a viable strategy if the trader is confident in the stock's ability to rise above the strike price before expiration.
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Strategyselling puts
Assetequity
Expiration43 days
Time horizonshort-term
Entry / triggerstock price at 43
Target / exitstock price at 45
Invalidation / stopstock price drops below 43
SpeakerSpeaker
Risks- Market volatility
- Stock price drops below the strike price
- Liquidity issues
Trade idea
ZB selling puts
The trader is selling puts on ZB (30-year Treasury bonds) with an August expiration, targeting a strike price of 110. The trade is considered a high probability trade with a break-even point at 109. The trader believes that the market is unlikely to reach the break-even level due to the current economic environment. The trade is designed to collect a premium while limiting downside risk. The trader also mentions similar strategies for ZN (10-year Treasury notes), selling puts at a strike price of 108.5 with a break-even point at 108.
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Strategyselling puts
Assetbond
ExpirationAugust
Time horizonshort-term
Entry / triggercurrent price around 110 handle
Target / exitbreak-even at 109
Invalidation / stopif bonds fall below 109
SpeakerLisa
Structure / legs- August expiration
- strike price of 110
- premium collected
Risks- Market conditions can change rapidly
- Potential for unexpected volatility
- Need for accurate market analysis
Trade idea
Nasdaq selling puts
The speaker is considering selling puts on the Nasdaq index, particularly on large tech stocks like Meta, Microsoft, and Google, as a hedge against their existing short position. However, they express reluctance due to the potential risk of losing money if the market moves against their position. The speaker acknowledges that selling puts is typically done on stocks one is willing to own, but they are not interested in owning these stocks at current levels.
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Strategyselling puts
Assetindex
Time horizonshort-term
Entry / triggerearnings reports
Invalidation / stopmarket movement against the short position
SpeakerScott
Risks- loss if the market moves against the short position
- potential for large losses if the stock price drops significantly
Trade idea
Trade idea selling puts
selling puts in a stock you want to own but don't want to take ownership of
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Strategyselling puts
Time horizonshort-term
Entry / triggerwhen the puts get to a 50, 60 delta
Target / exitroll them to the next month
Invalidation / stopif the trader wants to avoid owning the stock
Speakerunknown
Risks- assignment risk
- premium decay risk
Trade idea
Baba selling puts
The speaker is short puts on Alibaba (Baba) and Baidu, believing that the stocks may rebound from their current undervalued state. The strategy involves selling puts to collect premium, with the potential to own the stock if the price drops below the strike price. The speaker acknowledges the risk of the stock continuing to decline and the need for a long-term commitment.
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Strategyselling puts
Assetstock
Time horizonshort-term
Entry / triggerwhen the stock is undervalued
Target / exitthe strike price of the put
Invalidation / stopif the stock price rises above the strike price
SpeakerTony Battista
Risks- The stock could continue to decline, resulting in a loss if the put is exercised. The speaker also notes that being locked into a long position can be risky if the market turns against the position.
Trade idea
spy selling puts
Selling puts on SPY is a capital-efficient strategy that has historically performed well, especially in markets where downside risk is more likely. This strategy is preferred over skewed strangles due to its simplicity and effectiveness in capturing premium while maintaining delta neutrality. The key is to ensure the market does not drift significantly upward, which could erode the profitability of the trade.
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Strategyselling puts
Assetequity
Time horizonShort-term to medium-term
Entry / triggerMarket conditions favoring downside risk
Target / exitPremium collected from put sales
Invalidation / stopSignificant upward movement or market volatility
SpeakerMaria from the dog pound
Risks- Market volatility
- Significant upward movement
- Liquidity issues
Trade idea
Bonds selling puts
The speaker is selling puts on bonds at 112, anticipating a potential price drop to 110. The rationale is based on the current yield levels being the highest in 19 years, suggesting a possible continuation of the downward trend. The risk is limited to the premium paid for the puts, and the trade is considered a hedge against a short position in the broader market. The invalidation level is set at 116, indicating a potential reversal of the trend.
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Strategyselling puts
Assetfixed_income
Expirationunknown
Time horizonshort-term
Entry / triggerbond prices at 110
Target / exit110
Invalidation / stop116
Speakerspeaker
Risks- Market volatility
- Unexpected Fed policy changes
- Interest rate fluctuations
Trade idea
gold selling puts
The speaker mentions being a buyer at higher prices in gold and silver, indicating a long position. They suggest selling puts as a strategy, which allows for a defined risk. The target is set at 4,200, with a stop at 4,000. The speaker also notes that buying gold outright would have been a losing proposition, suggesting that the put-selling strategy is more effective in this context.
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Strategyselling puts
Assetcommodity
Time horizonshort-term
Entry / triggerhigher prices
Target / exit4,200
Invalidation / stopunder 4,000
SpeakerTom Saznoff
Risks- Market volatility
- Potential for large losses if the price drops below the stop level
Trade idea
Crude Oil selling puts
The speaker has been selling puts on crude oil, indicating a short bias. They note that crude has been volatile and that the market has been slightly bullish. The speaker suggests that selling puts is a better strategy than selling calls in this environment, as they believe the market is unlikely to move significantly higher. The speaker also mentions that the market has been up every day, suggesting a potential for a pullback.
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Strategyselling puts
Assetcommodity
Time horizonshort-term to medium-term
Entry / triggermarket is in a range-bound or slightly bullish trend
Target / exitmarket reverts to a lower range or shows signs of weakness
Invalidation / stopmarket breaks above a key resistance level or shows strong bullish momentum
SpeakerScott
Risks- market moves against the short position
- volatility increases beyond expected levels
Trade idea
NKE selling puts
The speaker suggests selling puts as a strategy for earnings, leaning bullish or omnishirectional. This approach is suitable when volatility is cheap, and the stock feels like it's trading cheap, even if it's not technically cheap. The rationale is that selling puts can generate income while being long the stock, and the expected move is limited. The trade requires monitoring the stock's performance and adjusting as needed.
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Strategyselling puts
Assetequity
Time horizonshort-term
Entry / triggerwhen volatility is cheap and earnings are expected to be positive
Target / exitprofit from the put sale if the stock trades above the strike price
Invalidation / stopif the stock drops below the strike price, the trade may need to be adjusted or closed
SpeakerArthur
Risks- If the stock drops below the strike price, the trade may result in a loss
- Volatility could increase, affecting the price of the put
Trade idea
Trade idea selling puts
Selling puts is a strategy that offers limited reward and high probability of success, similar to auto callable notes. It involves betting on market stability, where the underlying asset does not decline significantly. The risk is limited to the premium paid for the put option, and the reward is the premium if the market remains stable. This strategy is suitable for traders who are confident in the market's direction and can tolerate the risk of a potential loss if the market moves against their position.
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Strategyselling puts
Time horizonshort-term
Entry / triggermarket stability
Target / exitlimited reward
Invalidation / stopmarket downturn
SpeakerScott
Risks- market downturn
- limited reward
- requirement for market stability
Q&A
At what point does a stock that has been beat down for so long become a reason to sell puts rather than just trying to catch a falling knife?
The speaker suggests selling puts on stocks like Nike, Uber, Micron, and others, arguing that selling puts is a better strategy than trying to catch a falling knife. They emphasize that selling puts can be a way to profit from volatility and avoid the risk of buying a stock that might continue to decline.
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Actionable takeawaySell puts on beaten-down stocks to profit from volatility rather than trying to catch a falling knife.
Q&A
ask a question about selling puts in the Q's maybe like 7 days out versus selling 45day SI puts versus selling uh NQ future
The speaker discusses selling puts in the Q's, 45-day SI puts, and NQ futures, but the answer is not fully provided in the transcript.
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Actionable takeawayThe question is about comparing different put-selling strategies, but the answer is not fully provided.