starting to think i should readjust that limit order downhttps://twitter.com/Claudia_Sahm/status/1250026581118115841 …
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Replying to @kevinriggle
Presumably a limit buy? One of most interesting and in retrospect head-slappingly obvious things I’ve ever read, from Matt Levine: “You know if you’ve got a standing order when your broker it should be an option, right? Get paid for the risk you’re taking.”
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Replying to @patio11 @kevinriggle
e.g. If you’re doing something like “buy 100 SPY @ 200” (commits you to spend $20k cash if SPY goes down by a lot) then you could just write a $200 strike put on SPY. Same outcome but you get paid a hundred dollars or so a month.
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Replying to @patio11
I guess the x multiple on it long is an advantage where it's something to keep an eye on short
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Not entirely sure I understand. The analogous case on other direction is “If you have a standing order placed to take profit (‘sell this stock if it goes above $200’), you should write a call instead.” Then you again get paid a bit either way.
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