Selling puts carries less risk than just buying stocks because you are receiving premium to offset the risk.
IKR? It's not a stop. Long stock + put = synthetic call. That's a stop. There is no "stoptionality" embedded in a short single, Bro. And yes, I just made up "stoptionality".
I corrected my post to call it a dynamic stop. Wait how does long stock, long put mimic a call option? If price goes down put goes up...but the call goes down.
You forgot the t. Anyway, a stop denotes inhibition of risk. Like a suicide inhibitor in biochem. It doesn't reduce activity; it stops it, mole for mole, until it is exhausted in the system. Long stock + put = synthetic call. Same risk.
Are you getting assigned early and at what delta are your puts when you got assigned? Maybe I should get into the MARA trade. I can't hardly ever get early assigned in the tickers I am trading.
I use $ more than delta...$0.80 minimum is the (Weekly) strike I pick. No early assignment, just @ expiry. It is usually around .40 to .55 delta. I always take the shares.
https://www.google.com/search?sca_e...anCSMQvgUoAXoECAoQAg&biw=1638&bih=756&dpr=2.5 "stoptionality" The Trademarks shall be used only on or with such products and services as may be approved or specified by Licensor and shall at all times be used only in a manner approved by Licensor: poopy.
That was percolating in my brain...t is time decay so the put emulates the time decay/extrinsic value of the long call!
No, lol the "t" in StopTionality. But yes, you need to understand synthetics. W/o synthetics you're driving blind.
The difference between a call and a put is shares. There are spread and combo synthetics as well as the singles. Shares + put = call short shares + call = put