Recap
In our previous note, we discussed how investors can use short puts (selling put options) to buy the dip. Here’s a quiz.
Feel free to post your answers in the comments. We’ll publish the answers in the next episode.
Quiz 1: What are the benefits of using short puts to buy the dip?
A. Cash income — you can earn premium even if the stock doesn’t rise
B. Possibility to acquire shares at a lower effective price — if the s...

Hello mooers!
Last week, U.S. November CPI (Consumer Price Index) data showed that inflation cooled faster than the market had expected. This directly reinforced investors’ firm bets on Fed rate cuts next year and fueled gains in the U.S. stock market. Benefiting from this favorable macro backdrop, the technology sector—led by chip stocks—rallied strongly and staged an impressive comeback. Among them, memory chip giant Micron Technology...

Short-puts is one of most important strategies in the options toolkit. It’s highly versatile—effective both aggressively and defensively. In this three-part series, we’ll break down how short puts work across different market regimes: (1) buying the dip, (2) range-bound markets around highs, and (3) uptrends.
This is Part 1: using short puts to buy the dip.
Advantages
During a selloff, it’s extremely difficult to pinpoint the exact bot...