BujiBoy : What's your favourite option strategy?

BujiBoy : If you are very bullish on ABC for the next 2 weeks, then what woul be your favourite strategy

BujiBoy : I've never tried this type of Put Diagonal strategy before. If I ever employ a Put Diagonal, my setup would have a negative bias for the stock like buy longer dated ATM and sell a shorter dated OTM.  Can you further explain what advantage this strategy has vs the normal short Put Vertical Spread like say Sell 170 P and buy 140 P both Nov 14 expiration ?  The Vertical Put Spread earns you a better Credit than the Put Diagonal but at the expense of the slightly worst of theta but however with a higher delta and yes you can roll out and restructure both strategies if NVDA drops below 170.   Appreciate your views.

BujiBoy : Short put strategy in AVGO ? Wow that would be only for those with big accounts due to the Buying Power requirement.   Perhaps a short put spread would be more practical such that you dont have to put up such a hugh capital to open the position.  Just my 2¢

BujiBoy : It has been priced in with the recent up move.  It sort of sell on news

BujiBoy Moses- OP : Make real money or Monopoly money as in paper trading?

BujiBoy : You mention that you'd DCA into a losing position (or when your probability of profit decreases).  Do you think that is a good strategy?  You have not discussed the amount of Buying Power you need to put up when you continue to DCA. I would rather roll it out in time and try to collect more premium, if you want to maintain the same strikes. Or maybe move up or down the strikes (depending on put or call) so long as it can be done for a credit.  This would not inccur any additional buying power. ... Unless you've got unlimited buying power....

BujiBoy BujiBoy : Perhaps the DCA strategy could work for SMCI or TSLL.   But i dont think it would work on TSLA due to the Buying Power MooMoo wants you to put up!!!

BujiBoy TerenceFung OP : I normally consider trading fees inccured as cost of doing business. Just like a restaurant, even before your patrons step in, you already need to pay for electricity, water, not to mention interior decor

BujiBoy TerenceFung OP : But then for affordable stocks, you don't make much, like in your SMCI case you can only make 44$ but need to put up buying power of 450$ for 10% probability of success for Apr17 expiration.  It all boils down to your risk appetite.   Different strokes for different folks

BujiBoy BujiBoy : Also i believe Buying Power is not fixed for naked options. As the position moves against you, your Buying Power increases., before long, you would have to top up your account and hopefully MooMoo does not force sell your options. Also as it moves further against you, you may now be at risk of assignment .  Not too sure, how much MooMoo charges for assignment fees.  So normally i wluld just close the position and take the loss and then move on.