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u/the_axe_effect 1 day ago

Testing some Tasty Trade analyst suggestions

Hi Guys, So disclamer, I am relatively new to options selling, I have done some directional option buying but wanted to learn more about selling/spreads etc. The resouces on Tasty trade are really good in this regard. Anyways, I was looking at some of the analyst trades posted in there and they dont make any sense to me. 1) This analyst bought a TLT 78 $ Call and covered it by selling another call but its way OOM at 100 $, what's the poind of this, you get just 1 cent premium and ur not really covering anything, if anything ur capping ur profit. https://preview.redd.it/45o8ubjosquh1.png… 2) This Analyst got a MU butterfly OOM on 10/8 with 6 DTE. The Risk reward on this doesnt make sense to me, if anything MU is technically super bearish now, its on a downtrend after their earnings , I dont see a world where it will go >1100 in 6 days https://preview.redd.it/1xesii5ovquh1.png… On a related note is it worth following/studying trade analyst recommendations on tasty trade, or are there any better resources to learn from good options traders? I plan to just learn and follow traders for a while before starting anthing... Also I dont have the Buying power to trade these anyways :(
2 comments held Reddit says 0 on reddit ↗
  1. u/Much_Butterfly7610 1 1 day ago
    There is nothing tasty about options
  2. u/SwordfishLopsided 1 1 day ago
    1) have you tried punching the order into your own broker and see how the buying power requirement differ? 2) you have an opinion on MU, rest assured if the rest of the market don't disagree, then you literally can't trade. If you are so good at picking direction, there are better ways to get leveraged exposure to options. I would suggest you paper trade some of your own technical views and see if you are indeed the rare breed of technical maverick there is