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You are sort of correct. I made 4k on the short leg, but because stock went down the long leg didn’t loose any money and I am only down about $500 on it. So if I close the long leg, I would be profitable but the trade would be a 1:1 (risk $3500, made $3500, not worth it). But because I have lots...

Yes. But don’t forget that this is for a stock that is very volatile. Now I have almost ATM put at a discount with two months to go.

$78.98 and now theta is working against me. I am hoping TSLA dumps below $1000 and says there.

It’s not over yet. I’m keeping the long leg, so I scan still loose money on this trade.

During Thanksgiving, we must give thanks to the media for helping us make money! Where would we be if everyone calm, patient, and rational?!

And it’s not only Musk, there got to be long holders for whom trimming positions is just a prudent thing to do no matter the long-term fundamental view.

Got assigned on my put (also bought additional 200 a few days back) . Not sure if the market weakness is going to help me or hurt me going forward.

Thanks for kind words! Of course we are talking long-term here, so this is nothing but a small blip of nothing. Buy-the-Dip mentality is still too strong to believe in a crash, imho.

Closed short leg for $0.05

It would be interesting to hear from you, since I am in US for 30 years and I haven’t experienced runaway inflation. How does one cope with that on a personal level, not portfolio management.

But why would he call it credit swap?

What is “fair put strategy?” You meant Fed Put strategy?

I assume he sold puts on bonds so that if they go down, he just takes assignment at those levels. I think it’s same kind of trade Buffet did with stock indices when they crashed, except he didn’t short.

There are educators that claim that they can trade off dark pool transactions. I don’t understand how they can make a directional bet based on that.

“Why are U.S. exchange-listed stocks also traded over-the-counter? When an institutional investor is making a large trade (think thousands of shares), they sometimes prefer to do so over the counter, perhaps through a dark pool, for the pre-trade anonymity — and potentially price stability —...

I don’t think he sold puts on stocks. That would not be a good trade, imho.

Could someone explain this trade to me in layman’s terms? Short bonds, sell OTM puts? “Pershing Square made its bet with options, taking a notional short position principally in shorter-dated maturities of U.S. Treasuries, as well as some longer ten-year dated debt, Ackman said. “We were...

I can’t disagree with you on you making money! Good for you. I disagree about it being better than gold because BTC hasn’t proven itself as a hedge yet. I am just trying to understand why it’s needed once it’s regulated.

I sold 250 put but might close if stock pops. Market just mercilessly punishes every non-FAANG stock nowadays.