Content
@
0 reply
0 recast
0 reaction
I’m bullish
@iambullish
My friend forwarded me an email he got for a paid course promising to teach him “how to make money without buying any stocks/bonds/crypto…with limited space so act now”. After looking at the email and it’s attached video, all they are doing is selling cash covered puts so I told my friend I would teach him for free. Here is an example I just did. I just sold Coinbase 6/21 $237.5P for $5.09 when stock is at $237.94. If Coinbase drops below 237.5, my short put will get assigned. Since each contract is 100 shares, I’d need to put aside $23,750 cash in my account to earn that $510 put premium this week. If I get assigned, it’s equivalent to me buying 100 COIN at $237.5-5.09=$232.41/share so I would lose money if COIN goes below that but since I don’t mind holding COIN (cause it will pump sooner or later in a bull market), it’s ok.
10 replies
1 recast
128 reactions
I’m bullish
@iambullish
This strategy works best on a stock that’s -volatile: so premium is high -right after a drop: so chance of it dropping more is smaller -mid/long term trend is up: so you wouldn’t mind holding the stock if you get assigned while waiting for a pump
0 reply
0 recast
6 reactions