A couple of days ago I sold Put TQ (triple leveraged Nasdaq 100), now earning 93%, what exactly is the operation?

1/ Many people see me showing a 93.8% options return and ask: The market has gone up, why does your short position "Put" make so much profit?
Actually, the logic of options sellers is the opposite: sell high first, buy back low, and profit from the difference.
2/ To give a simple analogy:
A few days ago, when TQ was at a low point, selling puts was like creating a "big drop insurance" out of thin air, selling it at a high price to fearful buyers, collecting a $100 premium.
Recently, the market suddenly surged, and the probability of a big drop approaches zero; this insurance instantly devalues in the market, turning into worthless "scrap paper," worth only $10.
3/ At this point, I just need to spend $10 to buy it back and return it to the system (close the position). The $100 I collected minus the $10 cost results in a net profit of $90!
In the options world, the more sharply the option price falls and shrinks, the higher the seller’s profit!
4/ Why is selling puts extremely suitable for the current market conditions?
Although tech stocks are generally rising sharply, the macro environment is turbulent, with frequent "today down, tomorrow up" intense fluctuations.
If you buy the spot, a small correction can cause you to suffer greatly;
But if you sell puts (for example, set far below the current stock price), as long as the market doesn’t break your defense line, whether it surges, rises slightly, or moves sideways, you can 100% reliably earn this premium!
In today’s US stock market, where the main trend may be upward but the process is volatile, selling puts is a relatively steady way to make money.
#TQ #US stocks #期权 #Smart trading