marcal

The “type” of account isn’t the issue. It’s the source of funds. If you have $500K in your 401K in index funds, don’t sell that to trade options is my point. Build your nest egg, and maybe use a small amount around that to use options if you’d like. That’s what I was getting at.

Seneca Pilot

I am not downing Razor or that service. I know nothing about either. If that service will not provide verified trading results for at least two years, walk away. You can thank me later.

Buck Rogers

So, tying it all together, what say the pundits on an Feb RMO strangle 15/40? You can play too Tegridy.

Gunfighter

I'll propose a better trade would be selling put premium only. The IV is >100% and the max downside loss is capped at 100%- premium collected. It's a statistical winner. Max upside loss could exceed 100%, if the stock triples.

* Please don't take me seriously, I'm playing with a paper account. My trading opinions are equivalent to flying advice from a teenager playing MS Flight Simulator.

Big E 757

I don’t have a lot of time to post right now but I use Trade Station. I avoided it for years because I thought it would be expensive but it isn’t. I trade options, futures and currency futures. I got into automated systems years ago using NinjaTrader (C# language) but whenever I had an idea for an automated system, I had to hire a programmer to program it without even knowing if it would be profitable so I didn’t. Now, with Tradestation, they use “easylanguage” which is based on FORTRAN and easy to learn. The reason I switched to Trade station was because I had an idea for an automated system for trading options, and Trade Station is the only platform that supports automated options trading. I’ll have to look but I don’t think I pay anything for data. If you make a certain amount of round turn trades, the fees are waved. I’ll post more when I can after the family vacation or you can PM me any questions you have and I’ll answer the best I can. Trade Station isn’t nearly as expensive as I thought it would be, and with a virtual private server, you can set yourself up to have a program trade the futures market 24 hours a day, 5 days a week, while you’re working, sleeping, or hanging with friends or family. There’s nothing better than connecting to your VPS and finding out you made $3-5 K overnight. The opposite can happen though and those mornings suck.

Buck Rogers

Always good for a discussion. I would look at doing this on a stand alone basis as a strangle(you are correct about the theoretical unlimited loss on the upside) Pretty low volume. A mitigating factor is, I bought RMO towards the close on Thursday after a PITA selling of RMO in Fidelity after the name change on Wed from RMG to RMO at 31. Had to call a broker at Fidelity because they didn’t handle the conversion as seamlessly as I would have wished. Nonetheless, it would be effectively a covered call with the naked put as you suggested. I opened a TT account and instead of paper trading( a good recc ) I have made some differing trades (IC, butterfly, strangle, vertical) to learn(no pain, no gain). Spent 1 day waiting on a fill, had to adjust the bid the next day to get filled. I suspect on a low volume stock like RMO that might also be a factor.

I have used the “duplicate me” of several TT traders but was wondering about my own pick. Seems the metrics are as good or better than a strangle from the pro’s at TT. I was tilting towards the strangle due to my long RMO stock but would have considered it on its own merits as well as what you are thinking. Since I am a Boomer and am well acquainted with all the “missionary positions” of options, I was interested in some of the “bark like a dog” or “pretzel positions”.

Signed,

An old dog trying to learn new tricks

Gunfighter

For a second attempt, consider this double diagonal
-Sell FEB RMO strangle 15/40
-Buy MAY RMO strangle 12.5/45
-Net Debit of $2.70

*Reminder, this is like flying advice from a 12yo pilot playing MS Flight Sim. DYODD, YMMV, Objects in mirror are closer than they appear, You're about to become the bug on the windscreen. (YABBOW)

Buck Rogers

Effectively a very wide Iron Condor(my term) Would lower the cap requirement over 2 separate trades and maybe a better ROC?

IDKWTF a double diagonal is but I get what you are throwing down

Seneca Pilot

RMO diverged from the market on Thursday closing on its absolute low while the market closed at all time highs. Not a good sign for the bulls. Given the ugliness of the chart and the lack of support below I would probably hold off for now. It is down over thirty percent from its highs in two days. I bet it goes down a bit more before leveling off. The wholesale cashing out of the investors looks a lot like a pump and dump to me.

mispoken

Gunfighter does your platform offer you IV Rank? That’s much more relative if you’re premium hunting. An underlying “rank” tells you if it’s volatility is elevated relative to its historical volatility. So RMO, for example has a rank of 32. Not bad for premium, but not great. I can’t remember if you said you use TW or TOS. TW has this built into the platform, TOS requires a macro which I have somewhere and can get it to you if you’re interested.