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Drivesabrowntruck t1_ja9mv04 wrote

Reply to comment by Youngerdiogenes in and I wouldn't change this system for the world. by moonyou22

I think that has a lot to do with what options you’re selling. I do low IV, low Delta options, high volume on stuff I don’t mind owning. I think where many Theta gang guys go wrong is chasing theta, without looking at the underlying.

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Youngerdiogenes t1_ja9poqx wrote

Thats’s 80% true in my opinion. The other 20% is the lack of discipline. Even when selling safe covered calls on reliable stocks, the newer guys will sell a call on a stock, not realize it’s earnings week. And when the stock blasts past their strike, they suddenly rather keep the stock and buy their contract back for a loss.

Zero game plan and no discipline makes for a bad options salesmen.

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Drivesabrowntruck t1_ja9pzte wrote

So so true, $DIS was a prime example of this. Had 105 Feb monthlies, thing goes to $123 AH earnings day, nothing but a stone afterwards. It actually finished ITM on OE, stock didn’t get called away. One of the few times I’ve had them finish ITM and not get exercised.

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viperex t1_jachuqa wrote

> they suddenly rather keep the stock and buy their contract back for a loss

What?

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Youngerdiogenes t1_jacpnd6 wrote

That sentence makes perfect sense to people who know the mechanics of thetagang.

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