Two failed breakthroughs! Can it really be reversed this time?
After rising continuously, the market came to change inventory. It should be noted that the previous two attempted breakouts also occurred on Wednesdays, on Feb. 2 and Feb. 9. The market wobbled for a week after the first attempt. After the second attempt, the market tumbled.
This time the trend is likely to be repeated.
According to the trend path, the decline coincides with the start of the earnings season. So the overall decline will depend on earnings season, the true state of the U.S. economy.
If your sell put is a forward option, consider closing the position. In the near term, for example, this week's put expiration is fine, and this week's high probability will not fall to last Tuesday's gap.
These two days are good for covered call strategy if there are stocks that intend to hold and not move.
Want to buy a put?
Theoretically it can be bought, but the benefits are uncertain.
These days should be dominated by shocks. Although $Cboe Volatility Index(VIX)$ rose last night along with the broader market, it hasn't seen an uptrend yet. I'm going to put a calendar spread to hedge the time loss in these days. If there is no big drop, sell put can hedge put time loss; On signs of a big drop, flatten the sell put leg and switch to a pure PUT strategy.
There's another way, of course, which is the straddle strategy that we talked about earlier：This order is too large and too expensive to follow. But from this trader's point of view, Tesla does face a critical choice between 1100 or 800.
I'm sad to mention Tesla, too, and bought some very cheap doomsday options last week. But yesterday after the opening feeling momentum is not big enough, closed the position, this morning get up is, very regret.
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