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10baggerbamm : I took advantage of the dip also I went in I sold a boatload of puts I collected a premium for 2 days that's quite a bit and then simultaneously bought quite a bit on the morning Low's so far keep my fingers crossed that it goes up from here.. I backed the truck up..
TAKAGISG OP 10baggerbamm : I hold a small amount of put options, waiting for it to go down recent increase is too exaggerated
10baggerbamm TAKAGISG OP : I sell puts on it all the time I don't buy them I sell the puts to collect the premiums. I think literally since the election if I were to add up the total amount of premium that I've collected turn it into dollars it's probably about six and a half to $7 on the stock price. finally really going to show up tsll has weekly options and it's awesome especially when you have a stock trending higher I've got tsll long in size and on any down day I'm out selling puts about a dollar to a $1.50 less than the market if I get put it I don't care because the trend is higher and if they expire worthless it's free money
TAKAGISG OP 10baggerbamm : great strategy, I haven't tried selling puts yet.maybe I need to learn more to run this strategy
10baggerbamm TAKAGISG OP : when you buy calls and you buy puts statistically 90% of the time you lose money because the stock may move but it doesn't move in time so the value of that call or put declines and you lose money.
when you sell puts number one you only want to do it on a company that you want to own so rather than placing a limit order below the market to buy stock in a day or good till cancel order and if it falls there you get triggered you find a put option that is close to that price that you want to own the stock and you sell that strike price money in your account you just got paid.
if the stock does not fall by expiration date you keep that money if the stock falls to the strike price or less you get put the stock so now you own it which you wanted to do anyways. it's a great way to increase Total return on a portfolio but it's important you understand again you don't want to do it on a shit company you can only do this and you should only do this on companies that have a positive outlook that you want to own because you don't want to get stuck garbage companies that are in a downward trend you want to take advantage of a dip if you get put the stock it's fine and then the stock trends back higher and you make money on the long position of the common stock that you now own
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