Time for a correction?
After a strong performance in 2023, the Nasdaq performance has rallied around 60%. With such bullish moment continuing in January, it makes me wonder should there be a slight correction in February?
February is considered one of the bad month for stocks, on average it does make a negative return. Also with the mixed result of the magnificent 7, (Tesla, Microsoft, Apple and Google) has been a dissapointment.
I am expecting a bearish return for february, however market might always have unexpected outcomes. Hence, hedging is always the best option.
I am going to introduce a new strategy: strangle!
What is a strangle option?
A strangle option is where the expiration date of the two options are the same but different strike price. For example, 20240621 : i had a covered put @ 42 and a covered call @ 85. One of the stock will either do well. However in my case, i do not wish either of it to do well. This will result in theta kicking in and reducing the premium of the price.
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- Mess0M·02-06👏 Great analysis! 🚀📈💪1Report