so I demo-ed $TLT 20240621 87.0 PUT$, short put of $iShares 20+ Year Treasury Bond ETF(TLT)$ at $87, expiring at 21st June as per @OptionsTutor
thank god this is demo. otherwise my weak heart can't handle it 💔 😭
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Sis, you did it in the wrong direction… You should short/sell a put option at $87, instead of buying puts @nomadic_m
Thanks for following my trade. 💖
The order I share is short put. You need to sell the “PUT“ contract in demo account. For short put, when the current price declines, you profit. 💰
But your order is “Long Put“, when the current price declines, you lose money.
As the buyer of options, the contract’s time value decays over time. ⏳
Short put has a higher winning rate because it benefits from time decay and stable or rising prices.
You can try this “Short Put“ again in demo account and see how it will close by June. 📆
Could you check back on your order and tell me the date at which you sold this put? I'm quite certain you sold the put when TLT was in the greens, such that when TLT falls, your put ends up being very red.
You may ask, what's the purpose in me asking that. Simple. The trick is, SELL A PUT when ITS DAMN RED (of course at a strike price that you're willing to buy the shares if it goes south OR you're very certain that it will rebound such that your put expire worthless). SELL A CALL when it's DAMN GREEN (naked if you're daring and expect that it will drop eventually before your expiry, or covered if you own the stock and don't mind it being called away).
I trade options on Crypto related stocks at the moment (CLSK, MARA, COIN, CONL, MSTR, IREN, RIOT) and closed some puts (sold ON VERY RED DAYS) earlier on when these stocks skyrocketed.
I've got to try and recall what I typed for you earlier 🤦♀️🤦♀️
The trick to options trading is time. It's a time dependent kinda thing. Which means that if you were to sell a put at the wrong time, then you'd end up being in the reds prettily easily.
Could you kindly look up the date where you sold this particular put? There is quite a good chance you sold the put on a GREEN day, such that when TLT falls, your put ends up in the reds.
You may ask, eh. Why are you asking such a strange question? Trick here is. You SELL PUTS only on VERY RED DAYS (of course it must be a stock you're willing to be assigned if things go south OR you're certain it will rebound prior to expiry such that it expires worthless). And you SELL CALLS only on very GREEN DAYS (naked if you're daring enough and expect the stock to fall prior to expiry OR covered if you don't mind your stocks being called away).
That's the most important rule that governs majority of my option trades.