How's your first investment in 2022?
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Tried Selling Put Options
When you feel like buying the dip. consider selling put options.For a long term investor, selling puts are excellent ways to ’buy the dip’When should you consider selling puts? 1. When I believe current prices is at fair value and I want to own the stock at current prices2. Sharp drop or large fluctuations raising premiums of puts
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PlutoMoo102685100 OP : options can be risky. Please learn more before employing any strategy. Try out the strategies in paper trading before implementing them in real life.
PlutoMoo102685100 OP : FYI I choose sell puts.
Pros: if options expire bellow strike price I get the stock at strike price-premium
if price falls the lowest price I can get the stock at is strike price- premium
Better than catching the falling knife
Cons: if price rises the most I can earn in the premium from selling puts
grov28chez : To improve my reflexes
PlutoMoo102685100 OP grov28chez :
Buzzy2086 PlutoMoo102685100 OP : Not enough collateral for me to sell puts. Small account.
Buzzy2086 PlutoMoo102685100 OP : Totally got wrecked buying call during a dip. What i bought was not even a dip. Dip went deeper than Mariana trench. Lost $300 in just 1 day ! Lucky i cut loss early, next day price go even lower.
PlutoMoo102685100 OP Buzzy2086 : Options for most tend to magnifies your flaws and strengths.
There are some strategies meant to improve already good practices like selling puts
Callmedrphil : Sell puts
cassi143 : what is options trading
PlutoMoo102685100 OP cassi143 : Hi Cassi,
Moomoo has a course on options. I have shared with you a link on “what is options”.
The full catalog can be found at moo>courses>options.
For most options are not required for investing and very often gambling on options can end badly. In this post I proposed a more advanced option strategy to buy the dip. So take some time to learn about options then practice using them in paper trading if you are interested .
All the best in your investing journey
What is an Option?
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