Rate Of Return
OptionsAug 3 at 07:38 AM
Here, I'd like to make a clarification.
Just to avoid any misunderstanding from friends who are new to options trading: when I followed Value Bro to buy options, I never went all-in before. Previously, the funds allocated for options were only about 60% of my total capital. During the sharp market drop in July recently, knowing it was an overreaction by the market, I bought options for companies like GOOG and AMZN in batches. By the end of July, I had gone all-in. However, after the rebound in the last two days, I sold a few AMZN option contracts and have already recovered about 25% of my cash.
Additionally, I admit that going all-in at this golden buying opportunity involved a lot of luck. So, friends reading this post, please don't misunderstand, nor should you ignore the risks of options. In fact, while following Value Bro to trade TSM options, I also experienced a 50% loss in between. But I knew this was temporary, and since the overall position was profitable, I remained calm. Mentioning TSM is to remind those new to options trading to be cautious and not overlook the risks.
Options are essentially leveraged instruments; they amplify both gains and losses.
Finally, others' experiences can only serve as reference. Ultimately, you operate on your own and must bear the profits and losses yourself, taking responsibility for your principal.
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