BP

Mordrim

I think the way the market reacted after the August nonfarm payroll indicates the market pricing in 50 BP cut.

KirovianNL

Don't forget 3M, Bayer, DuPont, Dow Chemical, ExxonMobil, BP and let's list Nestlé again for good measure.

err0rz

BAE Systems, Nestle, BP and Coca Cola all come to mind.

trumpdiego

##Goldman on tomorrow... [1.0%] FED HIKES - SPX falls 2% - 4%. The first tail risk with the probability closer to zero than 1%. Given that Core CPI MoM has increased 3 consecutive months, this will given the Fed pause but the CP print was not hot enough to make this a credible threat. For reference, the 3-month average for Core CPI MoM is .30% or 3.64% annualized which is hot but not enough to hike given tariff policy that may inflect dovishly. • [4.0%] FED REMAINS PAUSED - SPX falls 1% - 2%. Another tail-risk and we think that this outcome would have required both a stronger NFP print as well as a hotter CPI print. We effectively received neither and given Powell's comments at Jackson Hole, this scenario likely does more harm than good. • [40%] HAWKISH 25BP CUT - SPX is flat to down 50bp. The primary argument now is whether the statement / press conference skewed hawkishly or dovishly. We are in the camp that with inflation increasing at a decreasing rate, plus YoY levels that in a 2% - 3% range are fine for the Fed to cut rates and resume its data-driven approach. Fedspeak points to the labor market being the bigger concern than inflation and with data pointing to hiring inflecting higher (Small Biz survey, Indeed listing, etc.) this could lead to a more hawkish Powell than expected, nullifying some of the stock market appreciation into Fed Day. • [47.5%] DOVISH 25BP CUT - SPX gains 50bp - 1%. Continuing with the above argument, it is possible that with a transitory view on inflation that the Fed sees the labor market as being far away from having an inflationary impact on the economy and thus has some room to cut, preferring a gradual series of 25bp cuts, as long as inflation remains contained and NFP remains weak. • [7.5%] 50BP CUT - SPX loses 1.5% to SPX gains 1.5%. The final tail risk and we are aware that this range of outcomes is pretty wide. The negative outcome would be tied to a market expressing a view that the Fed is more concerned about the labor market than it is letting on and that new uncertainty triggers a selling event. The positive outcome is tied to a view that the Fed sees itself as needing to catch up to the economic realities of a labor market on the precipice of rolling over and printing negative NFP.

Plane_Platypus_379

I'm predicting Jpow drops a 1BP rate cut for the lolz tomorrow. You heard it here first.

Ok_Cry7572

Tomm will be a 0.25 cut HAWKISH 25BP CUT – SPY Move: 0% to –0.5% Market interprets cut as cautious and inflation-worried. Some disappointment versus dovish expectations. DOVISH 25BP CUT SPY Move: +0.5% to +1% Baseline / most likely scenario. Powell frames cuts as start of gradual easing cycle with weak labor/NFP backdrop. Market relief rally.

EndTimer

I don't know jack about shit, but if he cuts more than 50, I'd be surprised if the markets didn't panic. For the first cut of the year, that would send the message "oh god shit is fucked, hope this is enough of a rate cut to stem the bleeding, idk we're still playing it conservative and 75/100/etc BP is what that looks like now oh fuck oh shit"

foulpudding

Sorry pal, the “money printer” goes brrrrrrr under Trump. If you make any effort to look up data, you’ll see that’s true. Our debt has soared under his majesty’s rule and the dollar has tanked. Take a look at the value of the dollar over the last year alone and correlate that to Trump taking office along with tweets he’s made. His attempts at controlling the Fed, his threats to foreign countries, etc, all have affected the dollar, sometimes immediately. As an example, right now we’re also looking at a potential .25 BP cut when the general data doesn’t support that. This is all because of Trump’s political pressure and moves. It’s stupid, and will be hurtful to the economy, but it’s happening primarily because of Trump. That affects the value of the dollar.

Redzombie6

I think even if they cut the rates 25 BP the market is going to dump. it's beyond priced in

BackWithAVengance

They also have the highest BP of any mammal

sm4319

Sounds like Hornz. Vafseo still not available in Fresenius and won’t be until Q2/26 at best. Who knows about Davita. After a successful Pilot study, they will make Vafseo available. But will Nephrologists prescribe? I also question BP’s influence over the large D.O.’s. Rigged? TDAPA money pot ends 1/2027.

hd805

Any thought on saudi aramco or european super majors like total, BP, ENI, shell, equinor etc..... or we looking at US only ?

Agolf_Tweetler

markets rallying on a 500 BP cut. 😂 no way it's 25 bp tho.

weasler7

75 BP cut by end of year according to CME fedwatch

Apprek818

Ibrk also pays interest on the parked cash. Less than shiv, but still. Otherwise yes, I buy sgov where they don't pay you, such as tastytrade. Very little BP impact from that. And places like fidelity, it's their cash interest.

god_im_bored

Buy today this thing is obviously going to 10$ 20$ If we get 50 BP rate cut

GaGtinferGoG

To be fair he close to instantly lost consciousness due to the drop in BP to his brain. Same thing kinda

Spr-Scuba

Fuck it. At this point just go for deflation and rip the bandage off. 1000BP rate hike, the fed board doesn't have the balls to do it.

SmashAtoms_

Check your BP on sofi. They haven't loaded shares but you can do the math and find your allotment

gamjatang111

50 BP cut then

pinghing

CME fed watch 8% possibility for a 50 BP cut Tomorrow that goes to 90% after CPI reports 1% inflation

Derpazoid69

50 BP rate cut boys. Lock it in.

Global_State4740

Naked / undefined risk strangles on SPX? It looks purely theoretical as margin requirements / BP consumption for such trades are way above what any retail trader can afford, not even talking about drawdowns. E-mini and SPY also have daily options these days but they come with their inconveniences (not cash-settled, assignment risk etc).

Round_Somewhere_5826

I’m gonna be honest i just wanted to have some cons on my account had $100 in BP and wanted to use it

weasler7

Fed's definitely gonna cut. CME fedwatch is even pricing in a 50 BP (rather than 25 BP) cut in September. I think the supreme court will allow Trump to do whatever he wants so tariffs will remain in place despite the stupid emergency reasons he cited to do so.

907cconnak

Even tho my port is green im bored. Out of BP

tet707

50BP rate cuts are historically only done for economic emergencies. And it’s not Powell himself who decides on Fed policy. The Fed is inherently left leaning as 1) monetary policy is, by nature, Keynesian. Austrian economic thinkers don’t even want there to be a fed 2) they are government employees, and most government employees are democrats.

jarMburger

True, risk management is quite important here. Still I won’t do it with that low of delta since I think there are better plays with my BP.

Derpazoid69

A 50 BP rate cut on the 17th will be a MEGA ROCKET 🚀🚀 🚀🚀🚀🚀🚀🚀💵💵💵💵💵💵💵📈📈📈📈📈

NH_trader

I sell calls on solid companies using portfolio margin so my investment (BP reduction) on each trade is about 5-10% of the strike value.....stays pretty level.

rain168

Market panic sells at 50BP rate cut ends up slight dip and surges to new ATH cuz “money is cheap”

hgreenblatt

I guess it depends. I left Fidelity after 6 weeks , since I could not get approved for options , meanwhile I Sell Options at Schwab with no hassle. I think I would have left Fidelity in any event since their app is so lousy, I am clueless how anyone put up with it. When I reactivated the IRA at Schwab (only spreads) there were a few questions asked but it only took a day to get the approval back. Tasty is a different story since they approve selling options if you can fill out the application. I would say their BP has higher requirements, but that is not a hard rule. I know they had a problem with the app this week, so that looks bad.

Mick_711

Nice post (even though im just seeing this 2yrs later). In terms of your VIX allocation strategies, Tasty has some guidance that might deviate from yours: [https://www.tastylive.com/shows/market-measures/episodes/allocation-throughout-the-years-04-14-2022](https://www.tastylive.com/shows/market-measures/episodes/allocation-throughout-the-years-04-14-2022) In short, they recommend: |VIX Ranges|Average % of Year|BP Allocation| |:-|:-|:-| |40+|3%|50%| |30 - 40|6%|40%| |20 - 30|29%|35%| |15 - 20|28%|30%| |10 - 15|33%|25%|

Alarming-Garbage-319

Does it require BP to sell SPY

MarkT1065

I understand your strategy and do the same. The parent post uses NVDA as the example when you specifically said stodgy dividend payers. He literally sets up a strawman to knock it down. Low IV dividend stocks are boring AF, don't swing up or down a lot, and allows us to sell Puts against BP and collect steady theta without high flying crash-worthy stocks.

Outrageous_Sample901

The real debate is will they start with a 25BP cut or 50BP. The job reports tomorrow will be bad, not to mention Jpowell him self said the inflation caused my these new tariffs are transitory

Sdfu_listen

Lol here after Iraq and BP just made a $25 Billion Oil Deal 😂😂😂

gamjatang111

i think we sell off slightly tomorrow. Feels like 25 BP cut is priced in. Need a 50 BP

sharpetwo

Early assignment on SPY is not some exotic trap: it is just mechanics. If your short put gets assigned, you wake up long 100 shares of SPY at the strike. If you do not have the cash, your broker extends you margin to cover it. You then either sell the shares, or exercise your long put to flatten. Two things matter here: 1/ Early assignment is rare unless dividends are in play. On index ETFs like SPY, it only really shows up around ex-div dates. Otherwise people prefer to hold the option. 2/ Your long put is protection. Worst case, you get assigned, you immediately exercise your long leg, and the spread collapses into its max loss. That is the whole point of a vertical: you have defined risk. So yes, if it happens, your account goes on margin for a day, you close or exercise, and you are flat. The key is whether your broker is comfortable with your buying power during that 24h window. With IBKR, you are fine. If this trade is using 30–35% of your BP, you are probably fine. The real risk is not assignment mechanics, it is always sizing.

FinsDig

Data was actual really good. Drop it. Make a quick dollar on the short. Short interest now 30% of float, spring is coiled. Dropout % was high during phase 2 was due to vomiting on the placebo lol. 12% body weight drop in 12 weeks. Its a weight-loss drug trial phase. If I gave you a placebo for a weight-loss drug and you didn’t know if it was placebo or real and you didn’t lose any weight, would you continue? No. You’d drop out. The trial was a success and any BP that reads into that knows they have the winning oral pill. It’s going to be acquired in near future.

gbaked

Grats to us both. I'll take my chances holding because I believe war with Venezuela is happening and real risk of Middle East round 2 rocket exchange. IMO recent vlo rally due to Russian refinery bombings and unexpected maintenance at Shell Pernis, BP Whiting, doesn't take into account new war risks elsewhere.

gtani

There's /r/thetagang and books by M Sebastian, J Spina etc, on building portfolios of credit spreads, strangles, condors, different structures. You want to diversify by underlying (*industry sector) but also by DTE's and strategies. Also calculating weighted delta and daily theta's, BP reduction or return on margin as benchmarks.

akalix110

BP

Apprehensive_Two1528

My best performing oil stock is BP Which is near 52week high.  2nd following is Shell  All my oil stocks are breaking  Refunery like psx cop vlo is doing excellent  DVN HAL are near breaking  Buy them if you want oil exposure

hgreenblatt

Spend the next 6 months watching vids on Tastylive. In the meantime , put the money in Sgov , Bil, Tbil, all earning over 4.2% yearly , 1,500 a month , so yes go get your old job back. The wheel is a lousy strat, since you will invest all your money in stocks you are clueless about. After a few months (keeping the Sgov) take half the account an open a Margin Account for trading. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

lazy_art

Your on BP. You can use margin to buy stocks/etfs but not for options.

Beret888

I sell naked puts and calls depending on the day usually between 940 and 1010 and I usually go for 50 or 60 delta strikes but I only sell 1 side a day, if I think the markets going to go up I sell puts etc but honestly I don't really care which direction the market moves I defend with ES futures its easier if I don't have to do anything but I'm completely comfortable defending them, in general I only sell 0dte SPX options to keep things easy I feel like its the best bang for the use of BP and I don't have to worry about overnight risks with everything cash settled at 4pm.

TheInkDon1

I don't think it is either, but OP was talking about how small it was, that's why I tacked that on. If BP is the same for doing both things, then 5% margin interest is a huge drag.

TheInkDon1

Yes, this. At worst, it's an equivalent trade. At best, you'll find that the Buying Power of CSPs is less than the Buying Power to hold stocks. Actually, at worst the CSP is still a better trade, even if the BP is the same, because you won't be paying that 5.x% interest, small as it is.

Interesting-Try-2521

Respectfully Disagree. Baked into the price was an overwhelming imminent threat of delisting and no foreseeable way to combat it which is why despite the “pump” to almost 1.4 (which I agree was not going to be sustainable), it has not tanked back down to near its prior levels as they are making a bunch of right decisions to get out of the very bad situation. On 9/26 they will have a shareholders meeting and if they are smart (which I think they are now being) , they will plan to release their upcoming cuffless BP trial results near that time and I think it will pump again on top of what I think is now going to be a sustained hold. If on the chance there are rumors or talks of any mergers or acquisitions this will take off. But yes, all my highlights are more highlighting times in which pumps are anticipated (for the betterment of everyone here to hopefully benefit) but overall they are turning around a fast sinking ship with improving and addressing fundamentals and so I think it will be an overall positive trend from the delisting extension with some big pumps and partial retractions as positive news is sprinkled in. Again, my humble opinion but I am confident I have reviewed and been invested in this stock far more than someone who just became aware of it over the past few days because it had a big green day.

becuziwasinverted

Sorry, but how is a 25 BP cut going to get these people employed ?

Technical-Age564

I step in buy 100 shares and sell an ITM covered call below the EM. Boom! Downside protection, 5% return on BP, and tax advantages better than the 60/40 futures deal!

hgreenblatt

Not seeing what you are doing as worthwhile. You are pissing away your leverage BECAUSE you are listening to Reddit users who only have 10k accounts. Also you and most of the commenters seem confused by Margin borrowing money to Sell stock, and what you call Margin but has been called Buying Power for the last 20 years. View these vids from the founders of Tos and Tastytrade. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

ZjY5MjFk

you generally don't want one position that big of a percentage of your portfolio. But a big index position is better than big stock position. How are you trading? Even in a margin account, both take up a decent chunk of BP on a $100K account. If you do defined risk trades (ie, credit spreads) then that reduce buying power and risk. Generally, most people would say each trade should take about about 3-7% of your net liq. So $3K to $7K on a $100K account. Ideally, they should be non-correlated, as best you can. So two tech stocks is worse than one tech stock and a grocery store.

NomadicInvestor2025

research the team. their entire career is a long list of BOs, especially CEO and chairman. listen to any call. CEO explicitly states that the goal is and will always be BO. call right after approval said that the offer was not "acceptable to the board". $PFE has a 15% stake so i'm still leaning toward them. also means they have BP backer.

SetOk6462

I sell naked at 45 days, but I close at 55% profit, or manage accordingly by day 21. Or if you get 20% in one or two days, it’s time to move on as well. I also close at 40% if it’s within a week. When you capture that much of your max profit that quickly, the risk/reward profile moves against you, and your BP is now being used inefficiently.

papakong88

If the market drops 20%, you can roll your put out. You can roll it out if you have sufficient margin. Your 0.05 delta put is 20% OTM and requires 52K in BP. If it becomes ITM, the margin requirement will increase to 90K. So if you have the 90K you will not get a margin call and will be able to roll the put out. If you buy a 14DTE put as a hedge, it will limit your loss but it will not reduce your margin requirement. You will still need 90K to avoid a margin.  SPX is cash settled, your collateral of 52K will cover 520 points of ITM. Increase your BP and buy a 14DTE hedge if it makes you sleep better.

Darth_waiter2

I asked ChatGPT to antagonize this strategy, I’m not new to trading but new to complex strategies that you mentioned. What do you think of its analysis? I know chat can be wrong so I’d love to know from seasoned traders what this means: “This is a systematic short-premium income strategy with defined risk. Mechanics: Structure: SPX iron condor: short ~20-delta put, short ~20-delta call, $20 wings. Net premium intake ≈ $300–500. Defined risk = $2,000 per side, offset by premium collected, so max loss ≈ $1,500–1,700 per condor. Risk/Reward: Target +25% of premium, stop –75%. Example on $400 credit: • Win = +$100 (80% probability). • Loss = –$300 (20% probability). • Expected value ≈ +$20/trade. Over 250 sessions: ≈ +$5,000. ROI ≈ 333% annualized on $1,500 BP. However, distribution is fat-tailed: 0DTE gaps can blow through $20 wings intraday, producing max loss. This destroys the “80% win rate” assumption. Stop losses in SPX 0DTE can slip badly due to liquidity gaps and execution lag. Greeks: • Theta: Extremely positive. Rapid decay benefits short premium. • Gamma: Extremely high. Small index moves magnify deltas instantly. Risk of blowout. • Vega: Short vega. Spike in VIX1D against position inflates losses. • Delta: Market-neutral entry, but gamma scalping impossible with bracket orders. Edge drivers: • Time of entry (1–1.5 hrs after open) avoids open volatility. • Exiting after 90 min reduces exposure to gamma blowouts. • Skipping Thursdays reduces exposure to weekend vol ramp. • Profit target discipline keeps expectancy intact. Weak points: • Tail risk not captured in simple 80/20 model. One large intraday move through both shorts → max loss ≈ $1,500–1,700. One such event wipes out dozens of $100 wins. • Liquidity in 0DTE SPX wings sometimes thin → slippage inflates stop losses. • Strategy underperforms when IV is low; collected credit may not justify risk. • Margin relief is key. Without PM, return on Reg-T capital is unattractive. Assessment: It is a structured “engagement” system, not scalable alpha. Edge comes from disciplined exits and exploiting intraday theta. Risk asymmetry remains: small, frequent wins vs occasional large drawdown. Viable only as a small-capital, probability-based grind. Should not be core allocation. Would you like me to run a probability stress table (P/L outcomes under ±1%, ±2%, ±3% SPX intraday moves) to quantify the blowout scenarios?”

jarMburger

If it already 80-90% profit then I’ll close out the puts. Trying to go for that last 10% with all the buying power locked in the trade is an inefficient use of the capital. I could use that BP to open another trade somewhere else where I get pay more for those theta decay.

papakong88

The margin requirement for spreads does not change so one can allocate more funds to do strategy #2 (0DTE). If we use 80% of the BP of the portfolio, we will have the margin to deal with a 20% drop in the market. I have talked about an ideal setup is to use one-third of the BP to trade and two-thirds as reserve in case I need to roll. When I roll, I like to roll for a credit. If the roll is a debit, then I will use the reserve to sell options to offset the debit. On any day that I believe that the positions are safe, then I will try to use the reserve to sell junk. On that fateful day of 8/15/25, only 15% of my positions are threatened. This is because my positions are spread over many strikes. Therefore, while I am managing the 15%, the other 85% are still producing at full capacity. If needed, I still have plenty of reserve to use.

A_Pretty_Good_Guy_

The difference is the CEO. He oversaw BP becoming the largest company in the UK and ever since he left BP has never been the same. If he says the same will happen with RYCEY, than I believe him.

A_Dragon

Doesn’t it only start losing theta in the last 60 days or something? Also it’s meant to be used with a tasty account that’s using t bills. When you purchase t bills they still allow you to use most of the money for options BP but you can’t just buy the underlying so it’s the closest you can get to double dipping.

papakong88

Plan for Friday, 8/21/25; Currently I am short the 23190/23090 put spread worth 44. FOMC is at 10 ET (9 CT). EM is higher than normal at 258. NDX is currently at 23413, the 23190 put is 50 points ITM. When the FOMC is over, the put spread could be ITM at close to max loss. What to do? Roll before FOMC? The new PS can be ITM after FOMC. Roll after FOMC? Hard to roll an ITM PS. I will try to roll in 2 steps - BTC before FOMC and STO after FOMC. Note that we should have the BP for 2 ICs on reserve, i.e., 20 K of BP. The PS is now at 44. So this should not be a problem. After FOMC we will STO a new PS for Monday. If money is a problem, then we will sell an Iron Butterfly (IB) for cash. For example, we can sell a 4 week ATM IB with a 100 point spread for about 96. (Sep 18 23200/23100/23100/2300). The good thing about the IB is it will stay at 96 for a long time and the max price is 100. So you can buy it back for 100. So for 4 you will have the use of 96 for 4 weeks. So sell an IB for 96. Then BTC the PS for 44. After FOMC, STO a new PS or two for around 44. Then BTC the IB. cc: [u/West-Bodybuilder-867](https://www.reddit.com/user/West-Bodybuilder-867/) , [u/etrec89](https://www.reddit.com/user/etrec89/) , [u/BigTuna916](https://www.reddit.com/user/BigTuna916/), [u/Miserable-Dingo2728](https://www.reddit.com/user/Miserable-Dingo2728/), [u/Serious\_Pineapple\_45](https://www.reddit.com/user/Serious_Pineapple_45/)

PartyNextFlo0r

Nah, rip the bandaid off! 200 BP hike !!

TheInkDon1

Okay, thanks for confirming no margin/reduced BP. And I understand staying on top of short positions and closing at some profit north of 50% and immediately selling another one. I hadn't considered compounding, but agree with you that that adds up. SOFI at 6 trading days and 25-delta I see 1.2% per week, so that would do it. (I like SOFI too, and actually have 3 PMCCs on it, though I know you don't like being long equities.)

TheInkDon1

Thanks for those clarifications, that helps a lot. I spent some time today with a chat bot and it told me a lot of the same things as you've posted. So with that and what you've told me I believe I can set up a good scanner. Then verify with the chart action. But I guess I need to just come out and ask this: I'm not finding ANY CSPs at or below 30-delta that pay 4, 5, or 6% per month like you say you're getting. I'm not doubting you're getting that, because you're too sharp and disciplined of a guy, but: is it *possible* that you're getting the benefit of the reduced BP of a margin account? I know you said before that you weren't, strictly cash, 100x the strike in collateral, but that's the only way I can make the numbers work. Could you share 2 or 3 of your current picks, please? If not today because of market conditions or whatever, then the next time you screen. I promise I won't trade them forever and ever, because I know that's not how it works. I just need to see that a straight-up cash-secured Put on *something* pays 5% per month. (Or 2.5% in 2 weeks, or whatever.) **TSLA** 8DTE 31-delta just now AH I get 4.9%, but you've said you don't touch TSLA, and that you generally only go up to 25-delta. **OPEN** 8DTE (6 trading days) at 23-delta gives 6.3% --> 22%/month. But it's IV is an insane 244%, and I don't think you trade things like that. Thanks, You humble student, Mike

asvpbarti

Was gonna buy puts but decided to use what was left of my BP to bet on Spx ending 6350-6375 and made 300 bones swag

StormJunkie843

I told y’all months ago…50BP hike by eoy.

GeneralEar8976

How can the "market be pricing in" a probability of a rate cut to be so high, as they keep saying on the news? They'd say something in the realm of: an 80% chance of a 25 BP cut according to markets. But it seems to me that the odds are much lower, and that there are reasonably likely hawkish outcomes also on the table for the September Fed meeting, such as no cut or even a rate hike. It also seems to me that this is the intuitive expectation of people in general discussing the matter, anecdotally and on the news. But it's such a disconnect with "the probability implied by the market". Honestly I don't really know what I'm talking about

banggunim

Do you mean direct to people or just not the government? Cuz they have contracts with BP Airbus Stellantis Hyundai Morgan Stanley Ferrari PG&E And most recently Fujitsu as of August 2025

GoLoco511

Some reason u/cashadvanceapps has been popping up in my recommended. One of the most pathetic subs I’ve seen, use this when you run out of BP

sarhama072

The RRP rate is differential between the fed funds rate range, demanding on the supply and demands of agreements inflowing from money markets. Bank reserves also have a ratio set by the fed. Completely separate from RRPs. Not quite sure what you’re talking about. The SRF is the minimum rate that the RRP must offer. Again, not sure how a 5 BP leads to a technical correction when the total reserves at the fed have been depleting for years because of less incentive to keep cash at the fed

sarhama072

What exactly does the sentence “the fed did a 5 BP technical correction” mean? This specific chart represents total cash parked at the fed. With QT implemented, it really doesn’t have much to do with cash being taken out of the fed. In fact, as rates INCREASED from 2021 to 2024, that increases total reserves at fed bc of higher overnight lending rates. Because there are better cash opportunities, such as a reverted treasury yield curve and equities But as the demand for debt financing continues to increase from the fiscal side, that’s there this liquidity crunch becomes an issue. This forces up short term treasury yields, discounting cash flows expected from companies

AdOverall7619

Everyone is waiting for Jerome Powell to ether drag the market down another 5%-10% because he refuses to cut the rate by 25 BP, but if he does cut it the markets should probably go up 2%-5%

hgreenblatt

If the 100k is in cash (or equivalent outside an Ira) then you are pissing away your leverage, BUT you will be popular on Reddit for buying a stock (you may not want) so you can sell calls against it, which is the Reddit Mantra . Also I am not a fan of Selling Calls while this market keeps going up (which could hit a wall soon). My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

Weaves87

I do both sides. Yep the ratio is 2 shorts to one long. Delta is usually something like 15-10 delta for the short legs and ~20 delta for the long, but again that depends on the setup. Always establish for a credit and I have rules around which ones are worth it (credit should be 10%+ of BP used, ideally more like 15-20% when IV is higher)

hgreenblatt

If you have the capital then yes. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

MOLAR65

I might add that I just passed the down 50lb mark. And the money saved on food and booze more than pays for itself, not to the bonus is that I am also no longer on a BP med. 6'5" and 223lb and I feel good!

WorkingFriendship550

It's not any one thing, but a combination of things that I've learned to help mitigate the impact of such events. The biggest two things overall are going to be Buying Power usage and position sizing. Both of which have bit me in the ass early on last year. There was a study that Tom and the team over at tastytrade did where they calculated the different events over the last few decades and figured out the appropriate numbers to be able to continue trading the next day. So to that point I'm currently trying to keep BP usage below 60% roughly, and individual positions below 7% of net liq, ideally below 5%. I also will generally stagger my expirations over multiple weeks, and I'm focused on predominantly selling where there is a high downside cushion to break even in addition to the time premium. For example, I've made a ton on CRWV selling naked puts even as it tanked. There were some of my puts that I sold at 165 when it was at 175, and rolled week after week until my breakeven was in the 80s. Two weeks ago I made almost 75k that week, and a big portion of it was the crwv puts that finally became fully profitable. If you have high premiums AND a nice downside protection, it makes rolling that much easier. As my portfolio continues to grow, I'll likely continue to lower my deltas and buying power usage to make it that much easier to weather any huge market wide downturns, while setting myself up with that nice buffer when I sell my initial positions

WorkingFriendship550

I'm mostly selling naked puts on individual stocks, and especially looking for ones that just had a nice pullback to sell more puts. Ideally keeping less than 5% BP on any one underlying, but that's not the case 100% of the time. Occassionally when a particular stock runs up and almost all of my puts are at 90%+ profit and premiums are still looking great, but because of the sudden jump I'm hesitant to sell more puts due to the likelihood of a pullback- That's when I'll sell some calls. But never as many calls as puts, to give myself protection if the particular stock keeps on running. (future pun intended) Perfect example of this is RUN. Last week I sold lots of 9, 9.5, 10$ puts. Then Friday happened. It jumped up almost 33% Friday, so I sold roughly half as many calls as I have puts at 17-18$ for this next Friday, the 22nd, and got great premiums on those.

WorkingFriendship550

As of this morning my current portfolio is $564,391.28, and I am up $296,446.48 YTD. I was at my lowest on April 5th, when I was at around 80k. I was trying to do way too many different types of strategies and trying to get premium on underlyings I liked, using spreads or strangles or PMCC to generate the highest return. I stopped all of that on April 5th, and switched to almost solely (95%+) selling naked puts. I also stopped trying to put 30%,40%, or even 50% of my portfolio into whatever had the best premiums, and started striving to use less than 80% BP at all times, Ideally 70% or lower, whereas before I stupidly wanted to have over 90% utilized at all times. I started screening heavily and looking for extremely high IVR stocks that also had nice downside cushion to break even. For example selling puts that my breakeven might be 15, 20, even 30% at times below the current trade price. I'd then balance that with overall time premium %, and that's how I'd choose my trades. A HUGE help was achieving portfolio margin, as the margin calculation then takes into consideration portfolio risk for every trade, making trades that would cause me to be concentrated in a particular stock or sector undersirable due to how much margin they cost in buying power. Effectively allowing me to get better returns with lower risk while using less margin. So yes I'm up 100%+ YTD and 600%+ since I changed my strategy in April, but I'm not foolish enough to think that'll continue for any extended period of time. I've averaged roughly 12%/week since then. I have, however been able to weather some pretty strong wrong trades ( I sold 30k+ of RUN on the worst possible day, the morning that later in the day was announced that solar tax subsidies were going away) I currently earn \~368k/yr from my job, and so I'd like to get closer to 2m before completely leaving, where even 0.5%/week selling options would outearn my current income. Here's a [link ](https://imgur.com/a/5vlnE2e)to a screenshot I took of my highest earners YTD, and my current YTD chart. At the beginning of the year I moved all trading to tastytrade.

Sweaty-Afternoon-508

Just remember you are high af right now like you just banged some meth. In this state, you will make bad trading decisions because you feel you really “got it” now. This will prevent you from taking your next loss, then compel you to revenge trade to make up for it so you can keep proving it to yourself and friends until your account says BP: $3.43. Not even enough for a large fry at Wendy’s to sustain you for those long days behind the dumpster. Seriously though, nice day! Let us know where you’re at next month. Godspeed OP, and may these words echo in the back of your mind when it matters most. If not, you will learn the lesson the hard way like the rest of us had to.

TheInkDon1

Wow, THANK YOU! I may not have time to finish this right now because my wife and I are about to go out, but this was an INCREDIBLE post. So you're Wheeling, but primarily on the Put side (as u/Scottishtrader does, I'm sure you know of him). I had seriously tried the Wheel a couple years ago, also mostly avoiding CSP assignment, but either it didn't seem to work for me (and I wasn't chasing high-IV trash), or it wasn't 'fast enough.' Probably the latter. But I've never met/seen anyone claiming those kinks of returns, so now I'm intrigued again. Are you using the Buying Power that a margin account gives you? Not 'using' margin, like a loan, but the increased BP? Are you selling more CSPs than purely cash-backed would let you? But after mulling over your and everyone else's crititques of my proposed VOO idea, I started thinking that maybe CSPs on VOO/SPY would be better. You'd always be *under* the market, so not capping any gains. ...and here she comes, so I have to go for now, but I'll come back tomorrow. You don't have to post anything about my proposed strategy, unless you have ideas for making it work out to the tune of 20% apy. ttyl.

Siks10

That's correct. Personally I have lots of margin equity as I never buy on margin. It's only used for cash secured puts and free. Other's situation may differ Technically I think what you refer to here is cash secured puts (where the cash is available through margin as a last resort). Naked puts are option level 3, which I don't have, and I believe that would not reduce BP

fudge_mokey

> You either get $1,600 for nothing Technically, you have the opportunity cost of tying up your BP with the naked puts.

allstarrevenant

Inverse reddit. If everyone here thinks it makes no sense we're probably getting a 50 BP cut and spy going to the moon

sum_dude44

why not 200 BP's?! chicken?

Hevens-assassin

CoD is making money hand over fist with their meme skins. It doesn't matter if reddit is "over it", the general public isn't. Battlefield's monetization is probably going to be substantially lower because of it, because that's just reality. Even Helldivers, which borders meme and realism, embraces the silly, which is how they make money on their BP's. The demand for realism isn't really there if you look at any financials in the past 5 years.

Resident-Cap-533

VG up 13% in pre-market - should jump big time today with Shell / BP lawsuits behind them. Also sets precedence they can sell LNG at spot market for newest facility

RollTheDiceFollowYou

At first, I was trying to figure out how you made money on BP T\_T

Unkechaug

Odds are they might do one more .25 BP cut and that’s it for the foreseeable future until the tariff nonsense settles down and we can prove there is no major uptick inflation. I think we will get one more cut this year, not sure if it will be next month.

gamjatang111

25 BP is locked in

Current_Animator7546

Keep praying. 25 BP cut sure.  Doubt we get 50. My hunch is 25 in September and 25 in December. 

gamjatang111

I am very happy. Just praying for a 50 BP cut sept so my digital currency keep rocketing

jnas_19

25 BP 100%, Why would they cut 50? The question really is what is Jerome gonna say on the meeting and how much are they cutting in the future?

gamjatang111

I think the question for september is 50 BP or 25 BP cut

EmergencyMelodic1052

https://preview.redd.it/hz4sx22lihif1.jpeg?width=1080&format=pjpg&auto=webp&s=1c7dbc57735ed90a3ba88a7d14e383ed6db82df2 This too. Sell side and use theta to your advantage. Takes up a little more BP

Etraderbanker

BP discovered large oil reserve. I don’t think this is olives in

SaintRainbow

Even BP beat on earnings, let that sink in

mitigatedcactussquat

It's more in relation to the case around BP cutting staff My impression that they're cutting headcount, and output will fall along with this. I don't feel like AI is being used to replace roles or make them more efficient, it's a catch-all to stop investors bailing.