$Direxion Daily TSLA Bull 2X Shares (TSLL.US)$ this is where...
$Direxion Daily TSLA Bull 2X Shares (TSLL.US)$ this is where selling puts provide you the ability to get some money in your pocket long before the stock potentially ever comes close to that price. so if you were to sell a 17 and a half put for a Friday expiration and I think it may come close to this price tomorrow in which case you want to wait a day you don't do it right now even though there's a half hour left but if you think this is it this is the bottom it's not going to fall any further then here's how you get to pick up some free money.
you sell however many contracts one contract is 100 shares 10 contracts is 1,000 shares Friday's expiration so it's 3 days away you're going to pick up 40 cents I know it doesn't sound like a lot right but it's 400 bucks on a thousand shares (10 contracts) that you get paid up front right now if the stock closes above that strike price Friday at 4:00 p.m. you keep your premium and you get to start all over again Monday morning if Friday 4:00 p.m. it is at that strike or below you get put the stock in which case your cost basis would be $17.10 not $17.50 that somebody would be putting a limit order to buy it out right at for example. direct.com there's a lot of money to be made when you target the right companies at the right time by selling puts I've sold puts on Tesla over the past couple of months dozens of times at different strike prices and sometimes I got put the stock and I was fine with it cuz I wanted to own it and other times the options they expired worthless so I kept the premium. you only want to do this on companies that you want to own you don't want to do it on a shit company.
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36 yrs in the trenches, raised 100mil for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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TinkerB3ll : Good sharing but I find the option volume is not that volatile as compared to stocks of the same price. But still good to consider.
10baggerbamm OP TinkerB3ll : it has nothing to do with option volume you're not looking for a breakout or a breakdown you're not betting the stock is going to go up or fall you're looking for an area that is a realistic level that the stock potentially might fall to and then you want to go a little bit lower and that's where you're going to sell the put so you collect the premium and you mitigate the risk of being put to stock. you only want to sell puts on companies that you want to own and the reason is you can't control the gyrations in the market and you can get very quick sell-offs going into a Friday afternoon close options don't trade pre-market or post-market it's 9:30 to 4:00 p.m. so the only way to remove the risk of being put a stock that's going against you is to buy the contract back which would result more than likely at a loss. that is why you only want to sell puts on companies that you want to own.
and again it has zero to do with the number of contracts that have traded it has zero to do with anything other than a way to generate basically free money for a very short period of time which is how I do what I do it on a weekly basis and the cumulative returns that selling puts achieves versus somebody that is buying and holding a stock for example or waiting for a stock to fall so that they can buy it and hold it selling puts greatly exceeds the rate of return.
even though I lost my Tesla stock a week ago Friday and it was called away my cumulative returns this year from selling puts on Tesla are up over 150% versus buying and holding the stock.
102487462 10baggerbamm OP : 卖出看跌期权。选哪个行权价好？看Delta 吗？谢谢