$SOXL.US$ what do I do what do I do?? oh my God I missed the...
$SOXL.US$ what do I do what do I do?? oh my God I missed the bottom on Monday I sold last week. does that sound like you?
this morning everything is green everything's in rally mode everyone has forgotten what caused the sell-off nobody cares.
do you buy this basket at $30.50 knowing that it was 28 yesterday even 27 and a half after hours after super micro dumped?
here's my suggestion I did it yesterday I'm going to do it again today.
do you wish you could own the stock the ETF basket at 28 yes or no?
if it's yes you can do two things you can put a limit in to buy good till cancel at $28 if the market corrects and we will I don't know when but it will happen maybe your order gets triggered.
but maybe it trades the 33-34 first in which case you kick yourself that you missed out you didn't even make it done
what do you do you can buy it right now when the Market opens or pre-market or you can hedge on the side of caution.
sell a 28 put. you can go out till Friday 2 days today, you can go out next Friday you'll collect more money.
every put is 100 shares so you need to have at least 2,800 cash in your account or buying power if you want to use margin I would discourage the use of margin on a leveraged ETF.
I don't know the premium on the 28th you can see where it was yesterday you can look at a call $2 higher and see what the premium was was about a buck and a quarter for a Friday expiration and I suspect that's about where the 28th probably will be on the open.
so if you sell 10 contracts that's $28,000 that's a thousand shares if this Friday it closes about 28 you kept the premium you kept your principal wash rinse repeat next week. if it falls and maybe it does maybe going into the close Friday everything rolls over nobody wants to hold over the weekend I don't know we'll see you'd get put it at 28 minus your premium that you collected say a buck and a quarter it would put you at a cost basis of 26.75 on a Monday open.
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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