I just sold a put option at 245 for MSFT expiring on 2/18/22.
If it gets there, it will be a 18% drop from here or 30% from the top. and I am buying this anyways at that price.
If it doesn't get there, I keep the cash.
If it gets there, it will be a 18% drop from here or 30% from the top. and I am buying this anyways at that price.
If it doesn't get there, I keep the cash.
Comment:
I am pricing in a drop very similar to the one from the COVID drop in 2020 (about 30% from top to bottom). If it is going to drop more, I can buy more.
Comment:
This is not an option nor earning play.