Link on why you should buy puts on door dash

I bought some Friday. 5 @ 3/12 145P @ 6.20 per contract

My advise if you are new to options (some of this is common sense but it took mistakes for me to learn)

- Go read investopedia and get an understanding of the primary greeks (Delta, Gamma, Theta) as well as option lingo (Buy to Open, Buy to Close, Sell to Open, Sell to Close)

- Don't be to worried about advanced strategies like collars, verticals, etc.. that will come in time.

- Selling Covered Calls can be the simplest and least risky way to grow your investment account especially on stocks with very high volatility. Just pick strikes you'd be comfortable selling the stock at.

- Unlike stocks, Options are not a long term investment (not counting LEAPS). Sell options when they are hot, don't hold them too long waiting on a strike price or waiting for expiration.

- Be Aware of the expiration date and what Theta will do to the price as it approaches. Theta is time decay and will decrease the price of the contact as expiry approaches. Don't be scared to spend more and buy an option with a longer out expiration. It's the smart play more times than not. Try to never be holding an option on the day it expires. I learned this the hard way.

- NEVER MARKET Buy an option. The spreads can be ridiculous between bid and ask. Always use limit buy slightly above or below the bid and be patient, it will fill. Same goes for selling, i usually set sell limit right below the ask. You can get sniped pretty bad on entry if you use Market.

- Price Movement can affect the price of the option just as much if not more than hitting the strike price. Don't be afraid to sell an option for a profit even if it hasn't reached the strike price. I bought RKT Calls and Puts last week on the same day, both were up by the end of the day, I sold both even though my Puts weren't close to the strike.

- Lastly, in some instances, treat them like stocks. I buy a Put on a stock because I think it will drop 2 weeks from now due to some event. It take a huge dip the first 2 days I own it. No reason to hold it through the dip waiting for the event. Sell it for a profit and rebuy when the stock recovers before the event.

One piece of advice I'll say if you're considering options, especially puts as they tend to be more expensive than calls, entry price and timing is crucial.

It's not as simple as "stock going down, put price will go up".

A significant portion of options pricing is based on volatility (you can see the implied volatility of any option you buy), and the market is currently seeing large spikes in volatility.

Currently DASH puts are trading at a relatively high premium due to the stock being hammered over the last few weeks. Even a short term tick up could put you in a bad spot.

For instance, Friday the stock was up not even 1%. If you had bought April 16, 145 strike puts at the bottom on Fri you would already be down close to 40%. Not insurmountable, especially if the stock continues to tank, but it's going to take significant moves to recover that 40% premium and become profitable. If the stock had a short term rebound, then you probably wouldn't recover even if it tanked at a later date.

Never put in market orders for options, and don't chase. Put in a limit order for a price you think is reasonable and that will limit your downside, and wait for it to get filled.

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If they pass the stimulus then I plan on waiting for the run up Monday then buy them.

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Now that it passed the Senate and waiting for the House for final approval, I am waiting for the anticipated run-up and go from there.

I am looking at doing the weeklies. Someone else mentioned the April puts, but you are paying a ton for all that time.

At the moment, I am looking at the 140 or 135s. I figure if the stock goes down 10% which doesn't seem like a big move for a volatile stock like this, it could reach 135 with a 10% down move from Friday's closing price.

With the approval, I will look at a 10% from whatever spike DASH gets Monday and see what happens.