I have been having a ball learning about and using the tastyworks options trading platform. I’ve got three bearish put spreads on now, and I’m also watching videos and reading almost non-stop. This is aligned with some new products and services we are developing at Slope of Hope. (The fact that there is suddenly an “Options” menu on the home page might have tipped you off to that).
One spread I considered (but decided not to do yet, since it’s so expensive and I’m still just learning) is Alphabet, better known as Google. They announce earnings in a few weeks, and to my mind, they’re going to be hemmed in between the two zones I’ve tinted below.
So I constructed what I thought would be a fairly interesting way to play this, using 11/1 expirations. Like I just said, though, I didn’t do it, but I thought I’d throw it out there.
The one I am really enamored of is the much less exciting Utilities (symbol XLU). Below is a trade I actually executed, and I find the risk/reward ratio particularly appealing.
The more experienced among you may be giggling and ribbing each other, but, hey, like I said, I’m just learning my way around. I’m sure these aren’t optimal. But all my life, whether it’s been computers or options, I have been a “learn by doing” kind of guy (and by “doing” I mean real money, not those fake paper accounts), so that’s precisely what I’m up to these days.