Sell Put
If I sell Tesla put options at 270 strike price and it did not hit 270 by the time it expired, it will be auto execised and I will need to buy 100 Tesla Shares at 270.
What would be the best case to mitigate risk ?
Should I just cut loss before it even get exercise or should I sell covered calls at maybe 275 strike price ?
My reasoning is If it hits 275, I am obligated to sell to you at 275 USD, which I make a small profit since I am buying at 270.
If it continues goes down or move sideway, I can collect my premium to narrow down the losses as well.
Does this strategy works or should I just buy back and admit the L
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101843152 : u only need to buy back the put. u can't excercise because once u buy back u have net 0 put in your hand