Manejo da operação em BOVA11, venda de call e put na pratica

Summary

In this video, Maicon provides a detailed guide on managing an options trading strategy called the short strangle, specifically with BOVA11. He discusses the challenges of adjusting positions when the market moves against him, especially after significant drops like BOVA11’s recent fall. Emphasizing risk management, he advises beginners to start small and avoid excessive leverage. Maicon also touches on strategies like Iron Condors for lower-risk trading. While he may stop recording every trade rollover, he plans to share his cumulative returns, offering valuable insights for both novice and experienced traders.

Takeaways

• 😀 The speaker has been consistently rolling options for the BOVA11 strategy for 10 months, adjusting positions based on market movements.
• 😀 The strategy involves selling call and put options within a specific price range, benefiting from time decay (theta) while managing risks.
• 😀 Last month, the BOVA11 price dropped significantly, requiring the speaker to adjust positions (roll the strikes) to keep the operation intact.
• 😀 Despite the difficulty of the previous month's roll, the speaker managed to recover by adjusting the strikes and generating a small profit from the premium received.
• 😀 The speaker stresses that, no matter how well one understands the strategy, there will always be periods when the market moves against you.
• 😀 The most recent roll improved both the call and put strikes, ensuring a more favorable setup for the upcoming month.
• 😀 The speaker advises beginners to start with smaller positions (e.g., 100 contracts) to minimize risk in case the market moves drastically against them.
• 😀 The speaker has a more positive delta in their portfolio, which balances out losses when the BOVA11 price increases too much.
• 😀 The 'short strangle' strategy, where both the call and put options are sold at different strikes, offers better potential profits but comes with higher risk.
• 😀 Alternatives like the 'Iron Condor' offer lower margin requirements but deliver smaller profits and less flexibility in rolling the positions.
• 😀 The speaker warns against following risky suggestions from others, such as buying far-out options to protect the position, which can lead to unnecessary costs and exposure.

Q & A

What strategy is being discussed in the video?

The video discusses an options trading strategy called 'rollover,' where the trader adjusts their positions every month, primarily using options like calls and puts in order to manage risk and potential profits.

What was the main challenge faced by the trader last month?

The main challenge was that the stock (BOVA11) fell significantly, causing the options' strikes to go far out of the expected price range, which made the rollover process more complicated.

What does the trader mean by 'crossing the strikes'?

Crossing the strikes refers to adjusting the options' strike prices in such a way that they are no longer aligned within the expected range. In this case, the trader had to adjust the strike prices of the calls and puts to salvage the position.

How did the trader manage to save the operation after the drop in the stock price?

The trader managed to save the operation by rolling the options to new strike prices, effectively creating a new position that allowed them to recover from the stock's previous drop.

What is the importance of Delta in the strategy discussed?

Delta measures the price sensitivity of an option to the underlying stock's movements. The trader adjusts the Delta of their positions to stay within an acceptable range of risk and reward, ensuring the strategy remains profitable.

What was the trader's approach to risk management during this strategy?

The trader advises a cautious approach, using a small position size (100 contracts) to avoid significant losses if the stock moves drastically. Additionally, they have a diversified portfolio to manage potential losses in case of major price movements.

What strategy does the trader suggest for beginners who want to learn this technique?

For beginners, the trader recommends starting with a small position size and possibly holding the underlying stock (like BOVA11) to cover the options they sell. This helps them learn while reducing risk in case the market moves against them.

What is the difference between the 'Short Strangle' and 'Iron Condor' strategies?

The 'Short Strangle' involves selling both calls and puts at different strikes without protective options, offering higher rewards but higher risks. The 'Iron Condor' includes buying additional options to protect against large moves, which limits potential gains but reduces risk and margin usage.

Why does the trader advise against buying options far out of the money as protection?

The trader warns against buying far out-of-the-money options for protection because it requires additional capital to buy the options, and if the stock doesn't move significantly, the protection is costly without providing enough benefit.

What is the trader's final recommendation regarding risk and strategy execution?

The trader's final recommendation is to start small, manage risk with a limited position size, and be cautious with leveraging. They also emphasize controlling the Delta of a portfolio and not overcomplicating the strategy with unnecessary positions.