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What are you talking about? You can do directional with multi-leg just fine. Like you could buy the August TSLA 350 for $25.50 and sell the August TSLA 400 for
by jonknee 8y ago
What are you talking about? You can do directional with multi-leg just fine. Like you could buy the August TSLA 350 for $25.50 and sell the August TSLA 400 for $9.25. Selling the higher contract lowers your entry price to $16.25 and you'll make money at expiration from TSLA being $366.25 instead of having to be above $375.50. Max upside ends at $409.25, but more likely to actually be profitable.
- marketgod 8y agoWhy am I going to sell and pay premiums when I can just make the money wasted on premiums. If you are hedging options then you are unsure of direction is all and limiting max profits. www.plainsitemanagement.com --> I hit winners. Better than anyone out there. Also, I don't hold until expiration but I want maximum profits, not basic money.