With the market cratering. At least my end of it. Be leery about selling puts. unless you really know that stock and are comfortable with the number. in many cases it’s like trying to catch a falling knife Nvidia look like a bargain at 210 when it was at 220. look like an even bigger bargain at 200 when it was at 210. it’s in the 190s last I checked. we will see whether it gets down to the 180 where I sold a put when it was at $220
if you sold calls above market price a few weeks ago and now they’re all maturing good for you. Enjoy your money that’s what’s happening to me. When things first start opted downward you could still sell calls at same price for same premium. Yahoo. That’s changed.
example. You own tqqq. It was at 70-75 and you sold calls for $80. Maybe you got $1-2 a share. You collect the $ and if it shoots up to $80 you cry yourself all the way to the bank with the $1-2 and the extra $5-10 in gain boo hoo
But then tqqq went down. Call expires. You keep the $. Yeah let’s do that again. But now it’s at 60-65 and to get that same $1-2 you have to sell the call for 70. Not 80.
you want to chase that $1-2. But you also know tqqq has been at 75 or even 80 before and you don’t want to take a measly $1 and sell out at 70. But you want the income and to look forward to Fridays
my advice is either sit this one out till it pops back into the range you’re comfortable with or go find a stock that is still in that range. And you’re familiar with. Or go learn. One of the biggest ways to get other lose or feel out of sorts is to be trading in unfamiliar territory. Either with instruments. Stocks or market conditions you’re not familiar with.
in those cases. Best to sit. Watch the waves a day or week or month. And see if you can develop a new strategy or formula for what you want to do next.
this is harder for me to do because I’m a first in the pool kind of guy.
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