Today I will focus on the option strategy, many people will worry about the sell put failure, in fact, last night happened, although it is a simulated account, but just use a strategy of the previous study.
For example, I sold the AMD put that expired on January 14th at $145. Last night when the strike price fell below $145, I shorted the same amount of shares. In effect, I hedged the loss.
The bug with this strategy is that it is difficult to operate if the underlying stock moves wildly around the strike price. So be sure to place a stop loss before you do this. Since the short order is placed near the strike price, if the stock price falls below the strike price and rebounds quickly, the short order will also suffer losses at this time, so I closed the position of the order last night after the decline slowed down. I made this option mainly to try the feasibility of this strategy.
I sold tesla's $1,005 PUT due next week just before I went to bed, and I felt the price was pretty good.
$Tesla Motors(TSLA)$ $AMD(AMD)$ $NVIDIA Corp(NVDA)$ $Apple(AAPL)$ $Microsoft(MSFT)$
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