RE:RE:RE:RE:short squueze in full effectYou could/should buy some puts if you're unsure and want to protect your position. I don't know that ''any bad news'' is already priced in. It was believed here that it was the case already before the big drop earlier this week, so...I'd suggest to :
Buy married puts: buy the number of puts that corresponds to your number of shares at a strike you're comfortable with. Protects you from further downside. Makes you a profit if it goes down that counters your share loss.
Buy calls/puts in a long straddle: buy an equal amount of calls and puts corresponding to your underlying with the same strike. Protects you from downside with the puts, makes you money while going down. Leverages your profits if it goes up with the calls. Use this if unsure of the direction of SP.
Buy calls/puts in a long strangle: buy an equal amount of calls and puts corresponding to your underlying with a different strike for puts and calls. Protects you from downside with the puts, makes you money while going down. Leverages your profits if it goes up with the calls. Use this if unsure of the direction of SP. Difference from straddle is it's cheaper and OTM but bets on more volatility.
Anyway, GL.
Disclosure-wise: I own no shares. I trade with long-strangles mostly.
wordless wrote: Well I sold 1,000 my traders today that I picked up on this last drop. I've still got my too large for my liking long position that I'm down 40% on, but at least I put $2,000 profit in the bank.
Any longs going to protect with some puts? I was/am thinking about it, but I thought by selling my traders it's a bit of a hedge already. I would imagine aany and all bad news is already priced in?