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 prices![]()
2. Sharp drop or large fluctuations raising premiums of puts
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
2. Sharp drop or large fluctuations raising premiums of puts
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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PlutoMoo102685100OP : options can be risky. Please learn more before employing any strategy. Try out the strategies in paper trading before implementing them in real life.
PlutoMoo102685100OP : 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
PlutoMoo102685100OP grov28chez:
Buzzy2086 PlutoMoo102685100OP: Not enough collateral for me to sell puts. Small account.
Buzzy2086 PlutoMoo102685100OP: 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.
PlutoMoo102685100OP 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
PlutoMoo102685100OP cassi143: Hi Cassi,
.
All the best in your investing journey
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
What is an Option?
https://www.moomoo.com/hans/news/post/6933223?src=123&skintype=3&user_id=102685100&main_broker=WwogIDEwMDgKXQ==&&utm_medium=futu_niuniu_share&utm_content=web_share&utm_campaign=news&utm_term=6933223
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