If there’s strong conviction on the underlying stock, we can amplify profits by having both the stock (for longer term holding) and the options (for shorter term trading). For stocks I would take a DCA approach and for options I may use a butterfly call to hedge risks.
Do You Have Experience Where Stock Gains > Options?
Over the past 10 years, both Nvidia and Bitcoin have delivered returns of up to 30,000%. In our community, we've also seen many users achieve over 100% gains from holding the underlying stock. In some cases, the returns even appear higher than those from options.
For example, after TSM's earnings report yesterday, the stock surged, and one user shared a 222% gain from holding the stock.
With gains this high, do you still believe in the leverage of options?
Or do you believe in the magic of time?
Have you ever made such impressive returns from holding the stock?
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