Sell Put Survival policy

OptionProMax
2022-01-06

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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Comments

  • Heartbeat12
    2022-03-16
    Heartbeat12
    $NVDA settled +7.7% to $229.73. Momentum to turn positive at the Wednesday open. Due a death cross.
  • BirdieO
    2022-03-16
    BirdieO
    $NVDA Notice how the weekly uptrend line almost exactly correlates with the monthly 21EMA 👀 I'd be intrigued in a potential long position near that area
  • HunterGame
    2022-03-16
    HunterGame
    $NVDA Downside risk. Wall Street price targets remain around 350-400$, roughly twice as high as recent lows at 208$.
  • AlexiaTours
    2022-03-16
    AlexiaTours
    Seeing a lot of semiconductors with DeMark Sequential buy Countdown 13's in play and on deck.
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