How the Trader Profited Over 130% During SOXL's 60% Decline?

SOXL has plummeted 60% from its recent peak of $70 this year, leaving many investors grappling with significant unrealized losses. But hold on—a savvy trader is still turning profits during this downtrend, with gains soaring to 134.25% and 66.67%!

Curious about the strategy? Let’s find out!

👏👏👏 Huge congratulations to @cheeyang for achieving a 66.67% gain on a SOXL CALL and an astounding 134.25% gain on a SOXL PUT!

Got some valuable trading tips? Don't keep them to yourself—share your insights in the comments below! 💡

From the example above, it's clear that this strategy involves intraday trading on options volatility, especially on expiration day.

As @cheeyang shared in their post:

Omg, you can open a 33cents call on high leverage ETF! 

With 33cents, you gaining of 100 shares profit, or lose a maximum 33 dollar.

The option premium is dirt cheap on the last day of option expired, few dollar with massive income!! 

Option is powerful if you know how to apply :)

Many of you are probably familiar with basic options strategies like buying calls and puts.

But did you know that by simultaneously buying calls and puts of the same underlying asset, same expiration date, but different strike prices, you're employing an options combination strategy known as a Strangle?

A Strangle is a non-directional options strategy typically used when anticipating significant market volatility. It involves buying or selling a pair of options—a call and a put—with different strike prices that are usually out-of-the-money.

Buying a Strangle

• How it Works: Purchase a put option with a strike price below the current market price and a call option with a strike price above the current market price.

• Profit Scenario: If the underlying asset's price makes a significant move either up or down, one of the options can yield substantial profits, potentially offsetting the loss on the other option and leading to overall profit.

• Risk: If the asset's price remains relatively stable, you risk losing the total premiums paid for both options.

Selling a Strangle

• How it Works: Sell a put option with a lower strike price and a call option with a higher strike price.

• Profit Scenario: If the underlying asset's price stays within the range of the two strike prices until expiration, you keep the premiums collected as profit.

• Risk: Significant price movement beyond the strike prices can lead to unlimited potential losses.

Note: This strategy is generally suitable when an increase in market volatility is anticipated. For buyers, the key is that the price movement must be significant enough to cover the cost of the premiums and generate profit.

SOXL Holders, What's Your Game Plan?

Are you choosing to hold firmly or continue adding to your positions while waiting for the next market cycle?

Or do you have effective trading strategies to reduce costs and hedge your positions?

🎁Rewards：

• Feel free to share your $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ stock positions in the comment section to win Tiger Coins! Don't miss out on sharing your tactics; give us a lesson!

• Large or high-win-rate positions also stand a chance to win stock vouchers and official interview invitations! Let's uncover who the guru is!

• If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~

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