@bk
But selling them at $40s only guarantees you lost as much as 50% for some shares. Buying put options with strike price in the same $40s range would have guarantees your shares value (shares would go down to the current $35, but your put options would be worth $10ish/share, so your combined value would still reflect a $40s price and you would retain your shares too.
8 replies (most recent on top)
My wife and I were lucky to dump all of our Nike stocks at $120 because we could predict what was gonna happen. Best decisions ever. If/when maybe it drops below $30 or definitely below $20 I might start buying again
Op here. I stopped buying the ESPP and shorting shares
@ab I had a quite bit of stock that I paid $65-$85. I sold it when it dropped to the $40’s.
@ab buying puts also works.
If you've been participating in ESPP and built up a significant position in Nike stock over the years, it is foolish not to protect its value by placing opposing bets on the stock price. Something as simple as buying put options for the number of Nike shares in your portfolio guarantees a floor value for your Nike holdings. Selling covered call options at the same time generates the cash to buy the put options, so no new cash is needed. It's a simple strategy and it works well when the stock price has significant downwards pressure like we've seen in the last 2 yrs.
A3 makes no sense
Chaos isn’t a pit. Chaos is a ladder. Many who try to climb it fail and never get to try it again. The fall breaks them. And some are given a chance to climb. They refuse. They cling to the realm or the gods or love. Illusions. Only the ladder is real. The climb is all there is.