Reciprocity
Active Member
Quick strategy idea for these stocks like Tesla that has a lot volatility. What if you bought DITM puts when the stock was high, and sold them on the dips to buy shares. The goal is not to hold them, but to flip them more shares. You would need some DITM calls to go with it. You would sell those on run ups and buy the puts. Rinse and Repeat as a way to magnify your position without taking to much risk. Am I over simplifying this? In general the DITM calls are cheaper when the stock takes a hit and the puts are cheaper when the stock is up 50 points like it has been over a short period of time recently.