To The Moon

After surviving a brutal Monday, do you think the market has finally bottomed out? Wondering how to achieve a 100% return during a downturn or successfully buy the dip?

Let’s find out!

🎉 Huge congratulations to @BillionaireN for an impressive 100% return using $Coinbase Global, Inc.(COIN)$ PUT and $Palantir Technologies Inc.(PLTR)$ PUT options! 👏👏👏

If you have valuable trading insights, don’t hesitate to share your experience in the comments below! 💡

From BillionaireN’s profile, we see a series of PUT and CALL options expiring on August 9th, all boasting 100% returns!

Here’s what we noticed:

• COIN: With a strike price of $130, significantly below the current $190 range, offering a solid margin of safety.

• PLTR: With a strike price of $16, compared to the current $30 range, showcasing a pretty secure play.

These likely represent longer-term options. As the seller, the 100% return comes from pocketing the premium, with the possibility of adding these gains to their portfolio. It could also be part of a broader options strategy, though we’ll leave that analysis aside for now.

So, what are the perks of selling PUT options?

1. Enhanced Capital Efficiency for Stock Buying:

• If you want to buy specific stocks but find the current prices too high, selling PUT options allows you to buy at a lower price. This can reduce buying costs while mitigating risk.

2. Higher Profit Potential:

• Selling PUT options often offers a higher chance of profit. If the stock price rises, remains stable, or only slightly declines, the option expires worthless, allowing the seller to keep the premium.

Important to note!

• It’s usually recommended to sell cash-secured PUTs. If the stock is bought at the desired price, you can either sell it immediately for a profit or continue with a covered call strategy.

• Selling PUT options often requires a high margin. Investors should ensure they have enough funds to meet margin requirements to avoid forced liquidation.

In essence: The sell PUT strategy is like setting a limit order. If exercised, you buy the stock at a predetermined price and can benefit from any price increase. If not exercised, you still earn the premium.

For more advanced investors, combining the strategy of buying stocks via repeated sell PUTs with sell covered calls to capitalize on time decay is also common.

So, what do you think? Were those option plays long-term or short-term?

And is selling PUTs a good fit for your trading style?

🎁Rewards：

• Feel free to share your COIN/PLTR positions in the comment section to win Tiger Coins! Don't miss out on sharing your tactics; give us a lesson!

• Large or high-win-rate positions also stand a chance to win stock vouchers and official interview invitations! Let's uncover who the guru is!

• If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~

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