because you are selling a put as well as doing the buy write. The put will behave as a stock on the downside.
How to trade BABA using options (wheel strategy)?
- Thread starter Gazillionaire
- Start date
because you are selling a put as well as doing the buy write. The put will behave as a stock on the downside.
The puts are in anticipation to be exercised to buy another 100 shares each time only if price drops by $10 for maximum of 3 times.
Have anyone here actually sold puts to buy shares as price drops?
1 put or call contract = 100 shares, understand?
1 put or call contract = 100 shares, understand?
Fwiw... that's a big red flag.
Don't fall for it.
Find another stock.
Pick one of these former high fliers that's down 60%+, no ADR's.
I wouldn't trust BABA.
What are these former high fliers your talking about?
I hesitate to throw one out there, because if it keeps dropping I don't want to be the one that suggested a volatile stock that you lose money on, but I will. Just do your own DD.
Maybe Twilio, but I'd wait for it to get in the $180's, or at least after they report earnings on 2/8
ISRG will work too, they report this week and I think it's gonna drop.
Use it if gets to $240. Their options are pricey though.
Snapchat will work, but again, I'd wait for earnings, 2/8, and go from there.
There's more. Plenty of beat down quality tech that's not propping up the NDX.
PATH might be a good one too. From that list.
Yes, except for the first 100 shares where I buy it straight away for anticipated $10 gain besides waiting for put and call option premium to expire.