$S 20250404 17.5 PUT$ My 2nd selling put option trade that is outside demo account!
I mentioned before that I had a first option trade in $Lightbridge(LTBR)$ . I have since closed the position for a small profit.
From that first selling put option, I have learned a couple of things.
1) 🐯 options commission fee is low enough for profit to be made even if it's a small position! [Strong]
2) Selling long expiring puts or calls option is not viable if I don't have enough free cash holding. For my first trade on Lightbridge option, in order to earn a relatively high premium, I had opt for a 1 year contract. $120+ for a year! Is it worth it? On hindsight, I would say it is a hard slog. True, you get to keep the premium in advance, but it's a one whole year for the price to move and those principals are meanwhile locked up. I would say that long term contract is still feasible if you have a long term view of a particular company and have substantial cash hoard that you could to park away. [ShakeHands] But if you are like me, with limited idle cash, you will find yourselves missing opportunities, like I did a while ago in$Niu Technologies(NIU)$ introduced by @Barcode [Facepalm] so, it's a useful lesson for me in options trading.
3) Selling puts and covered calls appeal more to me as I am new to options trading and still learning. They seemed to be relatively safer as long as you know what you are doing. They are leveraged trades after all. This is my second selling put option trade and it is on the right track. From this trade, I learn that if I did my homework and sure that the principal, in this case$SentinelOne, Inc(S)$ is what I am comfortable with to own at the price of interest, or if I am bullish with it, the trade would work out fine. I just need to have faith in my trade and don't react at every share price movement. Bum around and let the trade worked out on its own.
4) On a side note, I did a couple of buying calls options. I have positions turned against me and I closed both trades at a small loss. They are a lot more exciting than the selling trades because I am betting with the premium. I would more time and more trial and error to learn to buy calls or puts options to get the timing right. Having said that, I suspect it is not straightforward. it appears that a certain personality who could stomach the rise and fall without flinching is needed for a successful trade! Am I right? @Barcode @Shernice軒嬣 2000 Both of you seem to take a liking to buying options... [Sly] [Tongue] [Gosh] [OMG] Share your trading insights so I could steal some tips... [Silence] [Evil] [Chuckle]
@TigerStars @CaptainTiger @MillionaireTiger
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