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MJ DeMarco
I followed the science; all I found was money.
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Sell puts 60-90 days out on companies you like, optimally sell at strikes another 10% below current prices, or at a price you feel is bargain-basement.
You take advantage of huge volatility premiums, you set the price you want to buy at, and if the stock doesn't move there, you keep the premium.
For example, a 35 PUT OPTION on AMD with 59 days left is priced at $380. Sell that and if the price goes below 35 (currently 41.00) you get the stock put to you at 35. If it stays above, you keep the $380. If it goes to 35, you again, keep the $380.
Another example... An AAPL put at 200 with 59 Days remaining is a whopping $1,200. Stock is at 250, at 200, that's another significant price decline. If the stock doesn't reach 200 (a good price) you keep the $1,200.
When volatility is this high, it's a better investment to SELL PUTS instead of buying stock.
You take advantage of huge volatility premiums, you set the price you want to buy at, and if the stock doesn't move there, you keep the premium.
For example, a 35 PUT OPTION on AMD with 59 days left is priced at $380. Sell that and if the price goes below 35 (currently 41.00) you get the stock put to you at 35. If it stays above, you keep the $380. If it goes to 35, you again, keep the $380.
Another example... An AAPL put at 200 with 59 Days remaining is a whopping $1,200. Stock is at 250, at 200, that's another significant price decline. If the stock doesn't reach 200 (a good price) you keep the $1,200.
When volatility is this high, it's a better investment to SELL PUTS instead of buying stock.