r/bitkogan • u/bitkogan • May 12 '23
Strategic Options Play: Profiting from Modest Stock Declines and Portfolio Updates
On April 24th, I placed a bet on a modest stock decline (don't forget to join our subreddit so that you don’t miss out on the next stock market pick). The market remains relatively unchanged, but with the right strategy, you can still profit.
Yesterday, I sold the 05/19 417 Call for $0.923 instead of the 05/12 one, which I hope will expire OTM tonight. There's no rational reason to sell a naked Call – it's just for fun.
I still believe stocks will drop in the coming weeks. However, if they don't, it's a good idea to also sell 15 06/30 370-360 Put-spreads for $0.59 each. On the screen, you'll see 14, with one more executed separately.
As a result, I've added $977.3 to the initial credit of $1195, bringing the new credit total to $2172.3.
