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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.
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Ricky Wales
@singham
What if the price keeps going up, post you sell?
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I’m bullish
@iambullish
If price go up, my short puts will expire worthless end of day Friday and I get to keep the $509 premium
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