Zero To Hero Challenge Ep9: Wall St Wipeout

"Fear is for others" - Bruce Lee

Every day I must remind myself of the mission. Zero To Hero, nothing must stand in my way. No bears can take me down.

There is always some way to make a profit no matter which direction the market moves.

Yesterday I skipped posting since it was uneventful for the most part. Today the market had one of the most volatile red days in recent memory. Just about everything was down!

I was scouting the whole market for a good target to buy OR to write a cash covered put. When I saw how beat up Faraday looked I decided it was worth a small stab, using only my cash collected from premiums on BBIG.

A cash covered put would be the other side of The Wheel strategy, if employed on a single stock in conjuction with covered calls.

This time I SOLD A PUT, to open a position. This required $100 in collateral, of which $40 was paid to me as a premium. This makes my breakeven cost $0.60 and my assignment below $1 (will have to buy 100 shares).

As you can see the contract is up today and I can profit purely by selling to open, then buying to close when prices fall back. Keeping the net profit in cash!

Thats all for todays blog. Seeya next time 😎