To The Moon

I have a feeling of going back in time, as if I were back to last Monday.​​

The only difference is that the pre-market decline was not as bad as last Monday. There is no special reason for falling. The yield of US 10-year Treasury bonds once rose to 1.855%, setting a new high since January 2020. Technology stocks generally fell, with S&P falling 1.34% and then rebounding, while the EU-Germany index fell almost. The mystery here is that the market seems to be rebounding slowly before the market, but Bitcoin, a risky asset, has been bottoming out, so it is hard to say who is the real emotional feedback.​​​

For experience, it is very normal for the market to go at the support line. It is difficult to judge the up or downwhen it touches the bottom.Last year, in this kind of situation, I wouldempth my position, because I couldn't judge the direction, and I would encounter a reversal of the market on the same day when I was short or long, which made it difficult to trading.

But today is different, so my opinion is not to judge up and down, and continue to do short put at the support .

The key pointis when youshort put,meanwhilebuy put to become hedge portfolios.Some friends pointed out that the spread strategy can effectively deal with the black swan incident of short put.

For example, I short$NVDA 20220121 250.0 PUT $last Friday, and bought$NVDA 20220121 240.0 PUT $at the same time.If nvda closed above 250 this week, then I would get 250put premium-240put premium, and when the stock price plummeted, I would lock in the loss because I bought 240put.

The spread strategy will be further discussed tomorrow, so you can try it yourself.