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Kamikaze_Cash t1_j29zvxt wrote

Reply to comment by gypsies232 in Decided to YOLO my Christmas bonus on 0DTE TSLA puts instead of doubling down on my calls today by gypsies232

You only need like $50 to join theta gang

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gypsies232 OP t1_j2a01rg wrote

I tried joining earlier this year but I lost my entire $100K account selling TSLA call spreads. Probably should start with $50 next time and not sell calls on a stock that’s mooning either. Oh, and position sizing is important.

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Kamikaze_Cash t1_j2a2clm wrote

Yeah if you’re putting $100,000 into a credit spread, you can lose all of it by expiration. You can blow yourself up just as fast as with FDs.

Try doing some 30/16 delta iron condors first.

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AlfredKinsey t1_j2c43p7 wrote

In the future: it’s easier to deal with high liquidity, low price (like literally small number), and narrow strike differences in your spread, especially when you first start. The whole point of spreads is to reduce risk, but a $900/share stock with $5 spread strikes is always going to require a lot of risks.

It’s also not a great idea to be risking 100% of your account. I only revolve about 5% of my portfolio through theta strats.

Also, don’t continue digging into a losing strategy, just loose and walk away.

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bestaround79 t1_j2b5e3x wrote

Serious question, What makes you think Tesla is actually a good company?

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The_Clarence t1_j2d6p5c wrote

They were selling credit spreads. I think they think the company is garbage

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bestaround79 t1_j2d916i wrote

Haha my vision is going I read this completely wrong

Edit I take it this person isn’t showing us all his positions.

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AlfredKinsey t1_j2c4cs2 wrote

It’s more like with about $500, you can start to sell options to people and sometimes make an extra $30 a month.

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Kamikaze_Cash t1_j2chbrz wrote

You can sell $1-wide call credit spreads with $50 of collateral and make $25/week.

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