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Just getting started with options, have questions if you don’t understand?
The day before yesterday, when Bitcoin was at $67K, I sold put options at $62K and $60K respectively. At that time, the put options were priced around 1050 and 750.
My original plan was: if it drops below $62K and $60K, I would buy the dip and also collect premiums as interest, with an annualized return of about 15%.
But this morning, Bitcoin rose to $69K, and the option prices dropped to 720 and 480.
Now, the profit from closing the position is as high as 35%!!?
These options are a bit too effective—did I miscalculate, or is there a big trap?
It’s hard to believe I just missed the bottom and earned interest, while the price went up and I could profit from the increase?
Any teachers out there to give some guidance, 🙏?
Note: The above is for informational sharing only and does not constitute investment advice. Please do your own research!
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