I have done one major put in my lifetime. Yeah, I will buy back covered calls with puts...But nothing like this one. 1999...Summer, the dot coms were going crazy!! Walked into Morgan Stanley and did a put on QQQ. I KNEW this could not go on forever. But, hence it did...For a few more months. My option expired worthless. I had the right/correct concept...But my timing was off. It really soured me to puts. I have never been good with timing. So I buy and hold quality stocks...Many I do covered calls. Many I don't. Here is what happened in 2000-2002 for those not old enough to understand what the markets can do...From Wiki. The dot-com bubble (also known as the dot-com boom,[1] the tech bubble,[2] and the Internet bubble) was a stock market bubble caused by excessive speculation in Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.[2] Between 1995 and its peak in March 2000, the Nasdaq Composite stock market index rose 400% only to fall 78% from its peak by October 2002, giving up all its gains during the bubble.
Send me your website. Your competition offers $9.99 a month to subscribe and I can make $2.8M in my spare time starting with $1,000.
no one ever loses here on ET even when they average down on a 500 ES point move , the next 5 point bounce gets then into profit !!!!
I have been trying to illustrate what you are talking about in my journal but it seems like folks don’t believe it or don’t want to believe. “Never add to losers” or “only losers average down” have been drilled and cemented into our heads by the guru’s so that we can’t seem to shake the myth. If you can read price action good enough to get the general direction of moves correct and use correct stop placement you don’t have to be so precise in many entries. And the micro’s allow a small trader the ability to average down. But you gotta know when and how.
Still a bad habit anyway you slice it. Just cut your losses early and re-enter later if the direction goes in the earlier direction.