Protective puts break down in High IV environment.
- Thread starter wxytrader
- Start date
You can write a ATM call with a longer duration to protect the stocks in a high IV environment
So a covered call to protect a long position?
yep, with high IV the prices should be sky high..
I was looking at some GME and protective puts do nothing to protect a long stock position because the prices are so inflated. So puts don't work, stops don't work...just have to roll the dice I guess.
What do you mean protective puts don't work? When the prices are inflated, the put prices should be very cheap since put prices are inversely related to its underlying prices. When the undie drops in value, put prices go up and that's how puts protect you against losses. Can you give a specific example to illustrate how they don't work?
I was looking at some GME and protective puts do nothing to protect a long stock position because the prices are so inflated. So puts don't work, stops don't work...just have to roll the dice I guess.
Another thread full of your unqualified opinion just to justify your stupid idea of averaging down instead of cutting losses early?
Wonder how long this one goes
Another thread full of your unqualified opinion just to justify your stupid idea of averaging down instead of cutting losses early?
Wonder how long this one goes
do you have the highest like to post count on this site?
I don´t know man...if I had tits and ass I should probably consider creating an onlyfans account because of it.
But I don´t so I keep venting over a guy who litters ETs frontpage with BS posts. Perhaps I should get a fish tank so I have something to do when markets are slower...
I once met a stripper at the penthouse club in NYC who moonlighted as a junior vol trader for a hedge fund. She ultimately quit because she couldn’t do both and stripping made more money.
I was looking at some GME and protective puts do nothing to protect a long stock position because the prices are so inflated. So puts don't work, stops don't work...just have to roll the dice I guess.
I hope you realise, that on the payoff, long stock + put = call
Is it still so inflated?
At the moment 2 weeks ATM premium cost less than today % change.