So I got lucky with my first few option trades. I made about 150% off a call on IQ and then a 200% profit off a put position on IQ. Feeling like I was on cloud 9 I opened a bunch of put positions and found myself in a losing battle everyday. I ended up closing the positions at a loss when I realized that
1) time 2) iv 3) direction of stock
Was all going against me and I would rather take a loss then wait til it expires worthless.
So I decided to look into short selling and it just made more sense. If stock is declining then short selling can give you $$$ and you can buy to cover when you feel as though it’s going to go back up. And vice versus buy into it and ride it long or short term.
I love how puts and calls can give you so much profit but at the same time it’s hard to cash out on them as many things have to go your way.
I understand short selling a highly volatile 1-2$ stock can spell disaster but if it’s square...Twitter...insert big company name... you can just go in and go out and make some profit. If it runs sideways on you, you can close the position with minor loss. 10000 and it goes up 1-2% spells a 100-200 loss compared to losing 1000-2000$ premium on a put. What is the argument against short selling versus speculation puts?
Submitted June 30, 2018 at 04:43PM by snohomo https://ift.tt/2tGWhgj
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