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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 398.52-4.4%4:00 PM EST

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SirWalterRalegh
To: carranza2 who wrote (152082)12/14/2019 8:25:13 PM
From: TobagoJack1 Recommendation   of 218800
 
bit more re <<what’s your thinking in shorting puts rather than simply going long? Seems a bit riskier>>

a few brief points ...

(1) the 'riskier' is on the option buyer, as the time decay mathematically works against the buyer instead of the writer (seller) of options (call and puts), and most options expire on the buyer and in favour of the writer, extinguished to zero by inexorably inevitable time decay

(2) I treat risk as the stock going down and I am not short, or going up without me on board, as opposed to simple volatility of rapid or meandering up and down and up and down again (range bound) - given such, volatility is a friend and should be engaged with to generate returns under many market conditions where a traditional buy / hold / sell might not work as well

(3) ... and it is arguably easier to identify stocks that either goes up or range-trapped, than it is to pick stocks that goes up and up.

(4) remember my note to self, quoting self,

chaos is a gift
crisis a partner
volatility friend
lonely path right way
survive to fight another day (or more accurately "survive to survive the next day")

options plays to above
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