How do you recover if a stock you sell CSP on drop 30% after assignment?

Any tips or tricks appreciated.

hi thetagang,

glad to be with you. I’m new and actively learning be selling csp/ccs weeklies. Wanted to know your opinion on why 30-45dte is generally considered better than weeklies. I mean except for commission cost and more management weeklies are pretty much same in terms on premiums, theta decays faster, rolling is also simple. Or i don’t see some obvious points? Did you folks have more success with longer expiration dates?

thank you

Hello guys, I have a SQ CSP of 140 expiration of February 4. which I have done when the price was 170 still now as the price went down to 133 it is a bit hurting my margin.

Do you think it would be wise to roll further on same strike price to collect additional premium and to take the unrealised loss off from my margin?

or I should roll further but lower to 135 to take the same premium but be safer?

I'm quiet beginner not sure what would be better to do. I estimate fair value of SQ between 130-150.

What are the chances I get assigned? I’d like to be assigned. GME trading at $136.88 (just getting started on CSP)

Thanks for the input!

Hey everyone, hope you all are enjoying the holidays. What's your favourite Stock to sell CSPs on, my go to recently has been PayPal but looking to add some more to the list.

I’m debating which card to use for car rental insurance, CSP or amex plat. Is it worth paying an extra $25 to activate Amex’s primary car rental insurance instead using CSP’s free primary car insurance? In my experience, Amex customer service has been way better than Chase’s so I would rather deal with Amex if something is to happen.

New to theta gang, this is the one thing holding me back. I understand when the market is flat you can get more out of selling puts, but in bull runs like we’ve seen since March 2020, wouldn’t you have made more holding shares than CSPs or wheeling? Do most of you do this in addition to long positions for income, or is it your sole strategy?

New wheel trader here. Started my account November 1st and learned the roller coaster of risky IV rank plays. Had a great November... December's got me back to break even. Two questions:

1. Is there a rule of thumb or stats available on the % loss to take before closing for loss? (no rolling in this scenario).

2. Poll: What % are YOU willing to lose to close out a CSP?

Thx

EDIT: I chose the wrong flair and I don’t know how to change it. Sorry 😣

I’m a heavy traveler both for work and fun and I’m looking to get my first travel card. Right now I’m torn between CSR and Venture X. I’m leaning Venture X because I’ve read so much hate for the CSR since they changed benefits and upped AF.

Here’s info about me.

Country of Residence: USA Earn $100-200k/year Credit Score 800+ Normal Monthly expenses $2.5-3.5k

On top of this I travel a lot for work and for fun, this year I’m looking at roughly…

$3-4k worth of airline tickets $200-400 worth of train tickets $1-2k worth of rental car $250-500 worth of Uber/Lyft

$1.5k-2.5k worth of hotel stays $10k+ worth of both long term and short term airBnB rentals (I don’t know if Airbnb factors into “travel” for these cards but it would be awesome if it did because this is what I use when on assignment for work as well as when I foreign travel longer than a week)

I plan on being out of country for 3 months total this year

I know the CSR has some benefits with doordash. I don’t use it but I’d consider if it was worthwhile. I also eat out a fair amount so I like their dining rewards.

I like Venture X’s rental car hertz thing because it would be nice to get my girlfriend as a second driver for free.

Idk. Any thoughts?

With the recent market decline and the tqqq split (from which I can finally afford 100 shares). What do ypu guys think about selling cc and csp on this? Do you think leaps are better than shares at these prices? Have anyone constantly done wheel on tqqq?

Are they worth taking or is it simply a waste of my precious time better spent on something much more meaningful, like French?

Recently approved for CSP after applying for CFU and Savor. I used to use the Propel for 3x dining, streaming and travel but now that I have the Savor which gives me 4% for dining & streaming, and the CSP+CFU giving me roughly 2.5% (with the travel multiplier) on travel, does it make sense to keep the Propel? Or should I hold onto it anyway since it's a no AF card. My Propel has a low limit and quite frankly I hate the WF website.

Anyone selling CSPs on HOOD? Historical short interest as reported by Nasdaq is very high on the magnitude of several times daily volume. But the report is delayed.

https://www.nasdaq.com/market-activity/stocks/hood/short-interest

Analysts have also lowered their price targets to 17/share which may provide a floor. IV is relatively high for -.20 deltas or less and 30-45 DTE which puts you in targets in the low to mid teens. Thoughts?

I’m hoping to get the CSP to book travel in the near future and have read that they’ll offer a higher SUB through mail. Has anyone received their promotional offers without having a prior Chase relationship? I want to know if there’s anything I can do to get one or just settle for the 60k SUB.

My credit score fluctuates around 750 on Credit Karma and I haven’t exceeded 5/24

Strictly looking for a travel rewards card. I plan on doing some international travel in the next few years and have been looking at a travel rewards card, but would also like something with good domestic airlines (Southwest or American). Deciding if I should combine my Citi Double Cash with the Premier and get the 80,000 SUB or go with CSP which has better airline partners and insurance.

CREDIT PROFILE

• Current credit cards you are the primary account holder of: (list cards, limits, opening date): Citi Double Cash
• FICO Scores with source (see note on FICO score sources below): Experian: 763
• Oldest credit card account age with you as primary name on the account: Citi Double Cash (3 years)
• Number of personal credit cards approved for in the past 6 months: 0
• Number of personal credit cards approved for in the past 12 months: 0
• Number of personal credit cards approved for in the past 24 months: 0
• Annual income $: ~70,000

CATEGORIES

• OK with category-specific cards?: No

• OK with rotating category cards?: No

• Estimate average monthly spend in the categories below. Only include what you can pay by credit card.

  • * Dining $: ~ $300
  • * Groceries $: $100
  • * Gas $: $60
  • * Travel $: ~$150
  • * Do you plan on using this card abroad for a significant length of time (e.g. study abroad, digital nomad, expat)?: Yes, plan to use on all future travel and road trips.
  • * Other categories or stores with significant, regular spend (e.g. public transit, phone/internet, office supply stores, Amazon): Merchandise (Clothes): ~$300, Small Amazon purchases here and there: ~$75

• Current member of Amazon Prime, Costco, Sam's Club, or a Verizon postpaid customer?: No

• Current member of Chase, US Bank or any other big bank?: Chase

• Active US military?: No

• Are you open to Business Cards?: No

• What's the purpose of your next card (choose ONE)?: Travel Rewards

• If you answered "travel rewards", do you have a preferred airline and/or hotel chain? Prefer Southwest for domestic but doesn't matter

• Do you have any cards you've been looking at? Citi Premier or CSP

1. Sold 10x $WISH CSP @ strike $12 - Kept rolling over
2. Sold 3x$PLTR CSP @ strike $25 - rollover never stops
3. Sold 2x$ZOOM CSP @ $300 -closed for a loss
4. Sold 1x$SHOP CSP @ $1400 - Hoping I can recover here <- Don't want to keep rolling as I need this cash

I was told a credit average should be good enough but clearly not??

So I've only done CC and PMCC till now, and wanted to experiment with CSP. Now i feel like a bit scared cos i just sold 12 puts with strike at 122 on TSM with a delta of -0.08 expiring this friday. The probability is small that TSM drops from 130 to 122 in 2 days but I feel like the money is made too easy. Way easier than CC and PMCC cos i can use margin to secure my position. Can someone explain me what could go wrong in that situation that i don't see?

I own 10 CSP on PINS with a strike of 50. I got about $1/contract on premium and they are now worth about $12/contract. If I decide to close I would be down about $11k. PINS is trading at about $38 now.

What have you done when a trade goes deep ITM?

I have been rolling for about $100 credit every week but I am thinking that I might need to start paying to roll for a lower strike instead of rolling for the same 50 strike. I think liquidity has become an issue since I am deep ITM it is getting harder and harder to roll. I can always just get assigned and run CCs as well but not sure I want to be holding 1000 shares of PINS.

I would appreciate any advice and thoughts

So I want to sell CSP but my broker will only allow it if you have a min $25k balance. Long story short… don’t trade in Canada.

So I found this work around that is a hybrid between a CSP and Spread. It is essentially a very wide spread.

Example: CSP AAPL Sell the 5 DTE - 175 strike 0.16 Delta (~85% chance of profit) 1% return Break even at expiry $173 Max Risk $17,329

Extra wide spread AAPL 5 DTE - 175 short / 90 long 0.16 Delta (~85% chance of profit) 2% return Break even at expiry $173 Max Risk $8,330

Adding the long put at $90 reduces your risk by ~50% and increases your return by %100 without changing your chance of profit

New to theta, hoping to clear this up. Do most of you have the required reserves for expensive stocks in case your assigned or do you always buy to close?

I have a registered account, which is tax free, but, I cannot sell cash secured puts (in Canada, called TFSA in case anyone else is in great white north), but can do Covered Calls. Anyways, I watched a video on youtube describing ITM/ATM CC as having similar effect to a CSP, and I would be able to do it... Anyone does this instead of the full wheel? I did take a look at some tickers and compared return for 0.30 delta CSP vs ITM/ATM CC (29 strike for a $29ish stock), and looks like the the CC wins. And being able to do this on Tax Free account translates to savings of about 20% in income taxes (we pay about 20% in taxes for capital gains). If the stock goes up i loose the stocks but keep the premium less difference between stock cost and strike. If stock goes down i keep stocks, close and sell new call. If stock goes sideways i close the call for profit because of time decay and do cycle again... thoughts?

I just want to make sure I'm not overlooking anything before I pick which card to use. Sorry if this is a dumb question

We all know that NCE sucks and I am still not sure that it isn't Microsoft's intention to utilize this to thin out there CSP partners.

Be that as it is, I am working on a Q1 licensing deal worth approx $40K/month and the customer wants a three year guarantee on pricing. This is going to have to be executed under NCE. However, under the new program the CSP partner will be liable for the entire term of the contract regardless whether the customer goes bankrupt or otherwise ceases to exist. If the customer defaults on this it would be nearly impossible for us as the liable partner to recover from.

I've heard rumors and mentions in other forums of an insurance product that the CSP can purchase to address the risk of the customer defaulting on large contracts like this - but never anything specific. Have any of you heard of an insurance product or policy to cover this type of risk?

https://preview.redd.it/5k5v3wpf7o481.jpg?width=500&format=pjpg&auto=webp&s=099b8bfd39d55527cbeabae94ae149f2d64482d4

Skip to PLAYS 😈 unless you’re new

Say what you want about thetagang, the steady income can get attractive. Besides placing boring buy-limit orders on shares, you can also sell-to-open some Cash Secured Puts (CSPs), essentially achieving the same thing AND receiving some free money up front. Now you can afford keeping your onlyfans subscriptions on and maybe even going on a tinder date hopefully she lets you take a peek of her goods later.

Each CSP contract requires enough cash to cover 100 shares of the underlying — in case your underlying goes ITM and you get assigned the 100 shares per contract sold. The cash will automatically leave your account and the 100 shares will appear at the strike price you had picked. It’s like magic. The opposite of CSP is Covered Call which u/gunnarbird did a beautiful job explaining.

I would read and try to understand his post first before attempting CSP.

PLAYS 😈

Below are some plays you can get in today OR wait till after 🌈fed meeting (Wed 12/15) and go for 12/23 expiration for less risks instead.

MY tolerance is up to 150% IV, which is relatively high but you can always go 1-2 strikes even lower than my low suggestions for peace of mind.

Sell to open:

SOFI 12/17 $14.5 or $15 (~90% IV)

For example: if you sell to open 1 csp at $14.5, you need to have $1,450 cash sitting in your account. you in return receive $0.32 in premium (but you will actually receive $32 because each contract is 100 shares remember). The $1,450 stays in your account unless you get assigned. You can choose to close out (buy-to-close) your position early and pay back a portion of the $32 or you let it expire and keep the full $32.

3 month chart support level: 14.5

50 day moving average (M/A): 19.33

200 M/A: $17.75

SAVA 12/17 $41 or $35 (~150% IV)

3mo support: 41

50 M/A: 55.19

200 M/A: 63.12

GME 12/17 $150, $145, or $140 (~106% IV)

1yr supports are the mentioned strikes. There are lower levels but it hasn’t hit them again.

50 M/A: 190.99

200 M/A: 188.65

This stock is included because ApEs StRoNg ToGeThEr. Their stupidity keeps *hedgies* interested — the

I wanted to start traveling this year and decided the CSP and United Explore cards would be decent starting points. I applied for the CSP first and got put on review, and then applied for Untied and also got put on review.

Current Cards:

• BofA Travel ($1,000) [Jan, 2017]
• Citizens ($8,200) [Jun, 2018]
• Apple ($10,250) [Aug, 2019]
• Discover ($5,300) [Oct, 2019]
• CapitalOne QS ($2,000) [Oct, 2019]
• Verizon ($5,800) [Sep, 2020]

Credit Profile:

• FICO Score: 822
• Age: 25
• Income: 130,000
• AAoA: 3 years, 2 months
• Chase 5/24 status: 1/24

After one week, I got a call from an unknown number and it was a Chase agent saying they needed my to verify my address for the United Explorer card. Once I did they said it still needed to be reviewed further. After two weeks, I got a letter in the mail saying that I needed to call in and verify my address for the CSP. I called and after a couple minutes was approved for a $21,750 CL. I asked the same agent what was the status of the United and they said that it’s handled by another department. After being transferred, the new agent said I was declined for the United because of too many request for credit. I then waited 2 days to get the denial letter in the mail before calling the reconsideration line. The agent flat out asked why do I want this card, to which I told them that I am looking to travel more this year/visit family, and because I live in a United hub this card will help me take advantage of that. The agent put me on hold for 4 minutes and then came back saying I got approved for a $5,000 CL.

Edit: 1 hard inquiry on two same day applications from Chase appears to be no longer the case. I most likely did get the second hard inquiry, just wasn’t notified of it yet.