When the market is cheap & everyone is panicking


Two things are true at the exact same time
1. Put options are expensive
Herd is buying them for protection
2. Call options are cheap
Nobody wants to be bullish
So I do both at once
Sell puts for top dollar
Buy calls for bottom dollar
Then the market recovers
The put I sold for top dollar is now worth almost nothing.
The call I bought for bottom dollar is now worth a lot.
Close both & Take the profit.
That is how you capitalize on human emotion
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned