๐๐๐A good options strategy if you want to own
$Taiwan Semiconductor Manufacturing(TSM)$ shares but feel the current price is a bit too high is a cash secured put.
How it works : You sell a put option at a price you would be happy to buy the stock at say $350.
Why It is good for TSM now: You get paid a premium today .
If TSM stays high , you keep the cash as pure profit.
If TSM drops, you are forced to buy the shares but at a discounted price compared to today which is currently trading at USD 374.09.
The risk is you must have the cash ready to buy 100 shares of TSM. If the stock drops, you maybe buying a falling knife.
@Tiger_comments @Tiger_SG @TigerStars @TigerClub @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Great article, would you like to share it?
Great article, would you like to share it?