
Traded Value
OptionsMarket with increasing difficulty

Didn't participate in the battle last night. Because recently I've noticed many star stocks are experiencing both long and short squeezes whether viewed from mid-term or short-term perspectives. Take TSLA for example - after breaking 360, people thought it would head to 400, but it plunged all the way below 340. Then when it skyrocketed to 400, everyone expected it to continue squeezing to historical highs before it corrected again. So what about those who previously bought end-of-year 450C or 500C options? You might say they bought them as lottery tickets - gone is gone. But Tesla's options aren't exactly cheap. Nobody is truly foolish or rich enough to remain completely unaffected or not feel regret. Therefore, I believe beginners without options fundamentals shouldn't imitate influencers by playing extremely long-dated, far out-of-the-money options - can you withstand such volatility?
As for why I avoided trading yesterday - there's only one reason: Chinese stocks rose, which would inevitably muddy market conditions. Chase the rally in Chinese stocks? Be careful getting your pants pulled down - I'm scared. Even stocks that were originally rallying would face resistance. Holding underlying shares is one thing, but holding options in such conditions is like being an ant on a hot griddle!
Finally, a small opportunity: pay more attention to small-mid cap tech stocks with market caps between $1-5 billion. Recently might be a good time (especially those that have corrected or are in consolidation periods) - perhaps currently excellent choices.
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