Initial Trade:
Bought 200 shares of the underlying stock
Purchased 2 LEAPS put options as protection
Risk Management Logic:
If the stock drops significantly, I close everything with a net gain (thanks to the LEAPS) and re-enter at a lower price, potentially buying more shares.
If the stock goes up, I simply hold the shares, let the LEAPS expire worthless, and collect dividends while managing gains based on stock appreciation.
This creates a long-term, low-risk strategy with a defined maximum loss and asymmetric upside, protected by long-dated puts and supported by dividend income.
Bought 200 shares of the underlying stock
Purchased 2 LEAPS put options as protection
Risk Management Logic:
If the stock drops significantly, I close everything with a net gain (thanks to the LEAPS) and re-enter at a lower price, potentially buying more shares.
If the stock goes up, I simply hold the shares, let the LEAPS expire worthless, and collect dividends while managing gains based on stock appreciation.
This creates a long-term, low-risk strategy with a defined maximum loss and asymmetric upside, protected by long-dated puts and supported by dividend income.
Trade active
I've Bought @ 10.40
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.