Stocks | Options | Investing Analysis • Trades • Market Thoughts Selling Theta. Buying Time
Not Investment Advice
Joined September 2017
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The indexes look like they want to roll over.
Underneath the surface, I’m seeing something a little more interesting than just price action.
Several of the metrics I follow have improved versus Friday, and institutional options activity is showing aggressive:
→ Call buying
→ Put selling
→ Dip buying
Some of the clearest names right now:
$SNDK
$MU
$SPCX
$META
That doesn’t mean the market has bottomed.
But when the indexes look ugly while individual names start showing persistent institutional buying underneath we should pay attention.
There’s really no point in forcing a watchlist together right now.
I want to see where futures open first.
Until then, if you invest or trade, this is probably a better use of 10 minutes:
→ Review every current position
→ Check open orders and option contracts
→ Know exactly how much cash/buying power you have available
→ Make a short list of long-term names you’d actually want to add lower
→ Set alerts at prices that would get your attention
We don't need to predict tomorrow.
You just need to know what you own, what risk is already on, and where you’d be willing to act if the market gives you the opportunity.
**Preparation first. Watchlist second.**
The market is getting smoked. This is the opportune time to learn to sell premium.
Not because you should blindly “buy the dip.” But because fear usually means:
🔵Lower prices.
🔵Higher volatility.
🔵Bigger premiums.
If you wanted to capitalize on this dip and learn sell premium starting right now, here’s exactly how I’d do it 🧵
And if you get assigned?
Good.
You now own 100 shares of a company you already wanted…At a price you already chose…Minus the premium you collected.
Now you can learn the other side:
Covered calls.
The wheel starts making a lot more sense when you experience the entire process yourself.
If I were starting today during a market selloff:
One stock.
One price I want.
One put.
Plenty of cash left.
Let volatility work for you.
Don’t chase the bottom.
Don’t chase premium.
Don’t use all your buying power because the screen is red.
The opportunity in a falling market isn’t just bigger premium. It’s getting paid while you patiently wait for prices you actually want.
I took $BE on this trade however I moved the expiration up. I'm not loving this price action so going much smaller as a starter
Trade Set-up Idea $BE 🚨
The 30-day options flow is still extremely bullish, and the chart gives a pretty clean level to structure around.
I’m looking at:
**Sell the Dec 18 $150P around $4.50**
Why $150?
→ Massive options volume sitting above that level
→ Lines up closely with the yearly volume node
→ Gives the stock room to pull back without immediately breaking the thesis
→ Still pays meaningful premium while I wait
For someone **very bullish**, another way to structure it would be:
Sell 2x $150 puts
Use part of the premium to buy a long call or call vertical
You’re essentially using the short-put premium to help finance additional upside exposure with the obvious tradeoff that you’re taking on more downside/assignment risk.
If my order fills, I’ll likely add a few common shares as a starter position as well.
I own close to 10,000 shares of $SCHD and it's one of the most underrated positions in my portfolio. I've continually added a small amount every dip over the last six months.
The last two days are a great reminder of why I own it.
While everyone is chasing growth and the next big winner, I like having something in my portfolio that provides a little balance when volatility picks up.
$SCHD isn't a true hedge, but its dividend-focused, value-oriented holdings can help cushion some of the swings in a tech-heavy portfolio.
My approach is pretty simple:
Market goes up? I add to $SCHD.
Market pulls back? I add to $QQQ and the growth stocks I want to own long term.
Meanwhile, $SCHD continues to generate dividends that I can reinvest.
The portfolio that gives me opportunities regardless of which direction the market goes.
Trade Set-up Idea $BE 🚨
The 30-day options flow is still extremely bullish, and the chart gives a pretty clean level to structure around.
I’m looking at:
**Sell the Dec 18 $150P around $4.50**
Why $150?
→ Massive options volume sitting above that level
→ Lines up closely with the yearly volume node
→ Gives the stock room to pull back without immediately breaking the thesis
→ Still pays meaningful premium while I wait
For someone **very bullish**, another way to structure it would be:
Sell 2x $150 puts
Use part of the premium to buy a long call or call vertical
You’re essentially using the short-put premium to help finance additional upside exposure with the obvious tradeoff that you’re taking on more downside/assignment risk.
If my order fills, I’ll likely add a few common shares as a starter position as well.
Hmmmm....today sounds pretty familiar 🤔
Rates finally blinked. Now earnings need to prove the market right. This could be a massive week for direction.
📌Read the full post - thefreedomledger.com/arch
