Re:Ask HN: How to use technical analysis for long term inves...
by nmhancoc on Thursday December 30, 2021 @09:36PM
(#29744238)
I haven’t had (or seen anyone else have) success with TA, but if you’re looking to improve your entry into existing positions why not try selling cash covered puts.
The premium for short-dated puts gives you some bounds about which the options market thinks the underlying will move, and I’ve been able to improve my entries in effected issues by 5-8% in terms of price (before fees for options).
It’s effectively a limit order that you can’t cancel, with potential upside if the puts expire worthless.
The premium for short-dated puts gives you some bounds about which the options market thinks the underlying will move, and I’ve been able to improve my entries in effected issues by 5-8% in terms of price (before fees for options).
It’s effectively a limit order that you can’t cancel, with potential upside if the puts expire worthless.