9 ms·
It's my luck with this play that I sell the puts with strikes right where I want to buy, the market dips, then bounces before expiration and I don't get assigne
by nathanasmith 4y ago
It's my luck with this play that I sell the puts with strikes right where I want to buy, the market dips, then bounces before expiration and I don't get assigned. I keep the premium but that's usually a pittance compared to what I could have made had I just bought the dip (that I wanted to buy anyway!). Of course when the price drops to your strikes you could use some extra cash to buy shares but then you're holding shares and the short puts at the same time so there's a trade off, i.e. you can't go all in on both. And you sure don't want to buy those puts back during the dip as they'd be hideously expensive and it'd obviously defeat the purpose of the original trade. This stuff is never easy.