Retail investor: I nailed the
$GOOG "panic" in July. Sold a cash secured put right when it dropped to $316. Expired worthless, kept every dollar.
Me: Nice timing, seriously. That was max fear. How much premium did you get?
Retail investor: About $1,200.
Me: & what did the $50k+ of cash securing it do while $GOOG bounced 12% off that low?
Retail investor: ...sat in my account. It has to sit there.
Me: It doesn't though. If that collateral had been shares itself you woulda made 12% on the $50k which is about $6k. Instead you made $1,200...
Retail investor: So I called the bottom "perfectly" & go