Post Santa market tank

we just getting started baw

Every time I have played puts this year I have gotten chopped up. Playing the long game with a bunch of cash I think is where I am going to be at least for the first 2 quarters.

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that’s why Raytheon is up 8% today

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What are you ?

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Every time I have played puts this year I have gotten chopped up.

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Long or short?

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Post Santa market tank

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2023 will be nasty

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I'm holding 850 shares of Amazon at $99.50.

I might be the Santa shaking the bell and bucket next Christmas.

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Every time I have played puts this year I have gotten chopped up

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really?

I generally don’t buy options, except as part of spread strategies. And this isn’t a criticism of what you’ve done or telling you what to do in the future, but option buyers would usually do the opposite of what I do as an options premium seller; I sell when IV is relatively high, whereas they’d buy when IV is relatively low. Generally speaking, I seek to sell at higher premiums, they seek to buy at lower premiums. If you buy in the middle of a downturn, you have a chance that the market might go in your favor directionally, but any contraction in IV will make your options worth less.

Let’s say the VIX is hanging around the upper teens, so IV on the S&P is relatively low. For most of this year, that’s been a pretty reliable signal that the market is going to turn down (maybe violently). If that happens, IV (the VIX) should expand/rise. As a put buyer, you’d have paid a lower price with that lower IV than you would if/when the IV expands. You wouldn’t even need the market to tank for your options to go up in price or (intrinsic) value. Your puts will go up just based on the IV expansion.

Maybe that helps some… or clear as mud?