Initially was thinking of buying back today, but I saw opst's post yesterday, maybe using this is much safer to accumulate. I already have a lot of NVDA
You are correct. If stock does drop, hedge always makes less money than selling stock directly.
However, there is no guarantee that stock will drop for sure, and even if you sell and stock did drop, there is no guarantee that you could buy it back later.
I think this will work great with elliot wave theory
For example, it was very clear Tesla was going through correction cycle. I posted several wave charts early in Dec and Jan for this. I think this method is perfect during the correction cycle of elliot wave to accumulate stocks
这个组和完全不会亏啊， 给看一下。。。。
If NVDA drops to 80, your 3rd put will 100% cover the drop, so, you essentailly have a free ride on the down side with zero risk
I sold the short term NVDA I bought @110 at 120
Initially was thinking of buying back today, but I saw opst's post yesterday, maybe using this is much safer to accumulate. I already have a lot of NVDA
You are correct. If stock does drop, hedge always makes less money than selling stock directly.
However, there is no guarantee that stock will drop for sure, and even if you sell and stock did drop, there is no guarantee that you could buy it back later.
Hedge removes these uncertainty
因为NVDA如果再跌，股数越多跌的越多。
You will be assigned at 108, but your 3rd put position will protect all the drops from 104-90, so you get stocks for free
From 104 to 108, you are also covered by the spread profit from 112-108.
For example, it was very clear Tesla was going through correction cycle. I posted several wave charts early in Dec and Jan for this. I think this method is perfect during the correction cycle of elliot wave to accumulate stocks
You get a free ride to however low NVDA could be by 4/11