Single-leg vs. Multi-leg: Which one is for you?

Have you ever found yourself stuck between single-leg and multi-leg options strategies? Single-leg options may be appropriate for when there are clearer market trends, while multi-leg strategies, like vertical spreads, can be handy when the market's got you second-guessing. --------------------------------------------------------------- Curious? Confused? Or utilized these strategies already? How do you decide between single-leg and multi-leg strategies? Which one do you use more frequently?

avatarTiger V
07-08

Investment Reflection: SOFI Vertical Put Option Strategy

Overview On July 5, 2024, I entered into a vertical put option strategy for SoFi Technologies, Inc., by selling five put options at a strike price of $6 and simultaneously buying five put options at a strike price of $5, with an expiration date of August 16, 2024. For each contract, I collected an option premium of $22. This strategy reflects my short-term outlook on SOFI’s stock performance amidst a turbulent market environment. Background on SoFi Technologies SoFi began as a company specializing in refinancing loans but has since diversified its operations into three main segments: lending, financial services, and a technology platform. The lending segment includes student, personal, and home loans, while the financial services and technology platform segments represent newer areas of gr
Investment Reflection: SOFI Vertical Put Option Strategy

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avatarAyKing
01-03
I closed $TSM 20240216 90.0 CALL$  ,This is 1st leg of the bull call spread. In the weekly chart, the price had form a bearish candlestick after a good run. This suggest a lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. In the daily chart, the price had traded below the 20MA and towards a support level of $99-$100. Therefore, I have decided to close this trade to secure profits of about 50% of the invested capital within 5months, so that I release buying power for other opportunities.
avatarAyKing
01-03
I closed $AMZN 20240119 137.5 CALL$  ,This is 1st leg of the bull call spread. In the weekly chart, after a good positive run, the price had form bearish candlestick in the recent weeks. This may suggest lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. Since this trade is left with about 2 weeks, I have decided to close this trade to secure profits of about 13% of the invested capital within 6months.
avatarAyKing
01-03
I closed $AMZN 20240119 160.0 CALL$  ,This is 2nd leg of the bull call spread. In the weekly chart, after a good positive run, the price had form bearish candlestick in the recent weeks. This may suggest lost in upward momentum. In addition, the stochastic is also in the overbought region, which may also suggest the price is due for reversal. Since this trade is left with about 2 weeks, I have decided to close this trade to secure profits of about 13% of the invested capital within 6months.
avatarTiger Wong
2023-12-22

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