| rank - 3/31/2020 10:10
Earnings are going to be dismal for 1-2 quarters but where's all the stimulus money going to go? Bonds? Doesn't seem reasonable at these interest rates. The stock market looks ahead. Buy stocks and cover the down side with puts I think. Puts are expensive these days but at least you won't get wiped out.
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Instead of buying stocks at arbitrary prices and also buying high IV% puts for protection, why not just SELL cash-secured puts at a strike price where you want to own the stock anyway?? so that way, you collect the high premium from selling the puts, and it'll only get exercised if the stock price goes below your strike. With this strategy, YOU dictate what price you're willing to pay, and you receive premium while waiting for it to get to that price. Keep selling the puts month after month until the puts get assigned (IF the puts get assigned). If the price never gets to your strike, then you will have collected a lot of premium while waiting (you essentially become an insurance salesman). |
Buy or sell the stock market here?
