FAO Stock geeks: My NIA type pick for the next while

[Sanlmar]

aight san (and shit chaps didn't know you were a daytrader too), since you guys seem to follow this shit closely figured id asked your unbiased opinions.

what are your thoughts on selling options outright, not covered or anything like that...learned it because of an ex-boss of mine who blew up the book I worked for...fucker was supposed to have a fairly low amount of risk, but on average he'd be short $200-250K of theta per day...to me felt like playing somebody with 4 cards in Omaha when they had 5 and position...

anyway, I thought being short that much theta was stupid so I thought I'd start selling options and being long theta and at least having that going with me...

I focus on the weeklys because that's obviously the best short strategy because your theta burn is so great...I try to strangle the stuff I trade so that I can get the most bang for my margin dollars and stop myself out when I lose 100%...

I know the risk is obviously a position slamming against me so I'm still trying to figure out how to combat that, but I've been doing pretty good with it for the past 15 months...

I am Joey Knish not Mike McDermott. I have been broke before & have bills to pay. So I don't venture into your dark place.

Your looking to gamble time.

THETA is anathema to me. I daytrade very very small time frames. Nicking and scalping. I don't know what I am having for dinner that night much less what the market is going to do in the future.

100% stop loss. You're an animal.

Complex options trades is a quant thing - a math game - if played for the edges. There are opportunities with poor pricing.

I do use options near expiration as an indicator as to where a stock will get pegged by traders - the whole MAX PAIN thing.

Now if you want to gamble.... I do trade options sometimes near expiration where the time value has evaporated (the opposite of Theta) for underlying stocks that I think I have a feel for that day. A tiny move in stock price can double, triple or more the expiring option.

For me, biggest baddest gamble option wise... The triple play: Occasionally, I latch on to a stock ...
1. near options expiration
2. toward market close that day
3. with an earnings announcement that night.

Out of the money options can be trading for 20-30 cents.
I usually, play in the money options and try to bink a big return inside of an hour.

I try to think less about what I expect the earnings release might be & more about who is the market trying to fuck here?

I really got to be in a zone about a stocks price movement. I did this with that madman GPRO recently.