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Selling PutsSomeone asked me about selling puts and I see a lot of people talking about selling TSLA puts The nearest low is at a price of $591, the trend is long and we had almost 40% drop. The implied volatility is relatively high but could be higher (if the IV will go higher it is bad for selling options) The option has 30 days left until expiration. If the price of TSLA will be above $590 the option will be worthless and all the premium will be received $1610 We need a sharp move up to the green line if we want to buy back the option before expiration and get all the premium. In the previous epic wave of TSLA people made lots of money by selling naked puts. Selling naked is for more advanced traders.
NASDAQ:TSLALong
by ZoharCho
5
The Put/Call Ratio in a NutshellWhat is the put/call ratio? The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery we're used to, which has made it more difficult to make sense of the Put-Call, and other technical indicators as well. What is a derivative? To understand the value of the put/call ratio, we must first understand the derivatives market. A derivative is a (leveraged) instrument, which gives the holder a right to either buy (call) or sell (put) a specific amount of a stock (or other instrument), at a specified price, and timeframe. If your'e holding a put, you're likely expecting the price of the stock to fall, while holders of calls are expecting the price to rise. Puts are usually used as a solid hedging tool, while calls are more often related to speculative behaviour. How to use the put-call ratio? When the put/call rises above 1, it indicates that market sentient is shifting more bearish. At the moment, we're looking at a put/call of around 0.46, which indicates that market sentiment is very bullish, and actually, it's been bullish for quite some time as you can see in the chart. When we see a massive shift in the put/call back above 1, naturally it would be showing that investors and traders are becoming more defensive.
USI:PCEEducation
by Hedge_Of_The_World
32
JNJ- POSSIBLE PUT OPTIONS - MAY 21ST 0.84 CONTRACTS $150All, In semi recent news it's very possible JNJ loses the COVID contracts or at least long enough to take a solid tumble. IF it breaks into the red zone it should trigger a loss of a high and break trend downwards again to $145-$132 level. As always wait for conformation of breaking under first level and watch options volume/contracts for changes in price and news. JNJ in a prime spot to be shorted. Also you can always cover with calls.
NYSE:JNJShort
by DigitalData
3
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NSE:TATASTEELShort
by Hardikjethwa
Buying QS 16 APR 21 30 PUTI'd like to see price hold this resistance on the daily time frame. If price breaks and closes above $65.68, then I'll close the position and salvage what I can. I expect price to continue to move lower and check $28. Why did I buy puts with a $30 strike? Because price has already checked the $38 price level annotated by a check mark. I think price could push further down to the base of that price level (annotated by an up arrow) around $30 within the next 30 days.
NYSE:QSShort
by BACapitalManagement
7
Double top in VIACVIAC announced new shares will be issued diluting the current value of their already overvalued shares. A double top has formed on the chart. Correction ahead as there are multiple options for the underwriters to buy more shares after the initial offering, meaning the dilution could continue. When a company sells its shares, it's essentially recognizing its share price is higher than it should be and they are taking advantage of it. Take profits and buy puts to take advantage on the investor end. Bearish MACD cross appearing on the daily chart. "The company is offering $2 billion of Class B common shares and $1 billion of a preferred stock that is convertible into the Class B common, ViacomCBS said Monday. The shares are the company’s nonvoting equity. The newly issued stock will start trading on March 24, Bloomberg News reported." "Morgan Stanley and JPMorgan Chase & Co. are managing the offering. ViacomCBS granted them options to purchase up to $450 million in additional shares."
NASDAQ:PARAShort
by EBITDAtiger
2
VIAC looking juicy for a short/putI don't own stock anymore, I, unfortunately, sold once it hit its fair value estimate of $57. If I owned stock I would either sell it or use some of it to sell calls against to take advantage of the inflated options premiums by collecting that weekly as it goes down. As you can see the separation between the moving averages and the stock price has gotten into nose-bleed territories, the RSI looks grossly overbought for an extended period of time. This party has to come to an end. Not saying this will crash like the overcooked QS did but I would say if you don't have any exposure an in-the-money put option would be nice. ITM put options will have strikes above the current stock price and they have the trade-off of being more expensive but having a higher probability of profit without depending on a severe decline. Looks to be overbought to an alarming level, look out below.
NASDAQ:PARAShort
by EBITDAtiger
4