To The Moon

Another week of a down market, how is your portfolio?

Many Tigers may have noticed that some of you are consistently showcasing weekly gains of over 90% in their holdings. How exactly are they achieving this?

Let's find out!

Congratulations to @Kok for reaping a 97.56% return by selling puts on $Nike(NKE)$!

Nike as a company is familiar to everyone. Let’s see how the stock price of Nike is going.

Nike has been on a downward trend since May, nearing the $100 mark.

In line with the case above, with a strike price of $95 and an expiry date of August 18th, selling such a put contract implies that as long as Nike doesn't drop to $95 before August 18th, the premium for this contract can be earned.

In essence, this strategy is based on the belief that Nike's stock will not decline to $95, or even if it does, the investor is willing to purchase the underlying stock at that price.

What are the advantages of selling puts?

• Enhanced Capital Efficiency for Buying Stocks: If investors intended to buy specific stocks but find the current stock price relatively high, they can opt to sell corresponding put options to buy at a lower price. This can reduce the buying cost while mitigating risk.

• Higher Profit Potential: Selling put options often offers a higher probability of profit. In scenarios where the stock price rises, remains stable, or only slightly declines, the option expires worthless, allowing the seller to retain the option premium.

In essence, employing a sell put strategy acts like a limit order. If exercised, stocks are bought at a predetermined price, and benefiting from subsequent price increases is possible. Alternatively, if not exercised, earning the premium remains viable.

For more advanced investors, employing a combination strategy of buying underlying stocks through repeated sell put actions and then utilizing sell covered call strategies to capitalize on option time decay is also a common approach.

Special Notes: Whoever showed on the” Winning Trades” column will receive 50 Tiger Coins and an exclusive interview invitation to honor your contribution.

🎁Rewards：

• I'm aware that many of you have also profited from the sell-put. Feel free to share your positions in the comment section for a chance to win Tiger Coins!

• 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~

🧭 Share positions:

From your account holdings interface “trade”, then you can click "Share" by each of your stock option holdings to share with the community how much money you have made (or lost) on your investments.

Do not forget to take a screenshot of your positions and post them in the comment sections below.