Protective puts break down in High IV environment.

I was looking at some GME and protective puts do nothing to protect a long stock position because the prices are so inflated. So puts don't work, stops don't work...just have to roll the dice I guess.

 

You can write a ATM call with a longer duration to protect the stocks in a high IV environment

 

So a covered call to protect a long position?

 

yep, with high IV the prices should be sky high..

 

What do you mean protective puts don't work? When the prices are inflated, the put prices should be very cheap since put prices are inversely related to its underlying prices. When the undie drops in value, put prices go up and that's how puts protect you against losses. Can you give a specific example to illustrate how they don't work?

 

Another thread full of your unqualified opinion just to justify your stupid idea of averaging down instead of cutting losses early?

Wonder how long this one goes

 

do you have the highest like to post count on this site?

 

I don´t know man...if I had tits and ass I should probably consider creating an onlyfans account because of it.

But I don´t so I keep venting over a guy who litters ETs frontpage with BS posts. Perhaps I should get a fish tank so I have something to do when markets are slower...

 

I once met a stripper at the penthouse club in NYC who moonlighted as a junior vol trader for a hedge fund. She ultimately quit because she couldn’t do both and stripping made more money.

 

I hope you realise, that on the payoff, long stock + put = call

Is it still so inflated?
At the moment 2 weeks ATM premium cost less than today % change.