Meta’s share price plunged after earnings despite beating expectations on their earnings, as the company gave weaker-than-expected guidance for the next quarter. I think that the huge drop presented a good opportunity to buy the dip on Meta for long-term profits. I had 3 options, buy the shares, buy Meta CALL options, or SELL a PUT on Meta.
Each share of Meta costs above USD400 and it will be capital-intensive to buy more shares. I was unable to SELL a PUT on Meta as that would create a huge margin deficit. Thus, I chose to buy a LEAPS CALL on Meta, giving it more than almost 3 years (Dec 28) to rise and become profitable. The premium that I paid (around USD2k) is my max loss but I am okay to lose this amount if Meta continues to plunge.
More details here: [25 April 24] Bought 1 x LEAPS CALL on Meta
I also bought the dip on SPY and QQQ ETF as I think they are the safest stocks to invest in and best choice to buy the dip on when there is a correction in tech and the general stock market. If tech rebounds in the coming months, these 2 ETFs are most likely to create another new record highs.
More details here: [25 April 24] Bought 5 x QQQ & 5 x SPY
I closed 2 positions on Tesla, one is a PUT contract and the only other is a Covered CALL contract that I had held on since Jan 23 because I sold the CC when Tesla was about to bottom back then. The 2 BUY PUT contracts were initially profitable until Tesla’s share price shot up after earnings and the positions turned into losses. I cut losses and closed them before the losses snowballed. For the Covered CALL position on Tesla, I managed to close with a good profit to offset the losses from closing the PUT contract.
More details here:
[25 April 24] +USD471 Profits, Closed CC Position in Tesla
[25 April 24] -USD785 Loss, Cut Loss in Tesla PUT
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