actually, IF one DID correctly time a drop from 100. to 50., within, say 6 months (pretty rare), one would make MORE than even 200 % in a properly bought put, yes ? and, from 100. to 25. (extremely rare, and it is not good that you would even infer such a move, seriously), your gain would be several hundred percent, at least...."PSYCLE sm" traders NEVER expect such returns, even on one trade....as you should have gleaned from reading all my "Lessons" (or you can get my "special Puts booklet" from my website, cheap, with charts/examples, etc.) we eliminate the emotions, lower expectations, have no pressure-needs to create huge gains, etc.
answer: the "best" way, is MY way, when correct, over time, etc., with stops, diversifying, using my patterns, ind. grp. rotation, etc.
but NO ONE can even remotely approach such gains, often, over time... will just never happen....you MUST have/accept losses along the way, even the best of us do....the best $ managers in history have done less than 30 % a year, compounded....but, over a 1-2-3-year period, MAYBE, we can do big numbers....it is easier, with non-insitiutional-size accounts...for instance, I have had a +300 % year, a + 150 % year, an +75 % year, a 0 % year, a -20 % year, a +15 % year, a -8 % year, a -15 % year, etc. , at times, the last several years, all in options, the "PSYCLE sm way" (not consecutive)....we never know...must find a great approach, and stick with it, lower emotional expectations.... still, very good L.T. results....so, sorry if this is not the answer you wish, I have only been doing this, well, for 25 years, but one must please try not to harbor such dreams of such unrealistic gains.
last, what if you ARE initially correct, and it falls from 100. to 60., but there is support there, but YOU are waiting for 50., which never happens ? dig ? we do, what the stock tells us, not what we "hope/wish" will happen, right ? hope this helps....my concepts will help you with this, over time...best wishes, |
