I do agree that there is danger in this option position. That makes it more excuiting.
The VIX (CBOE Market Volatility Index), has been way down lately. It is the index that determines how lucrative the options market is. So this is a relatively dangerous time to be selling or buying options.
So I have been forced to set my option exercise price lower than usual. Since the beginning of the year I have been setting it at $26 for MARA which has been safe so far. The thing is that the miner stocks are a proxy for the price of Bitcoin. So they go up and down regardless of what the stock market does.
With the exception of one Nuclear Energy stock, I am 100% invested in Bitcoin Miner stocks. And of those Marathon has the absolute widest dynamic range of share price which makes it the most productive for my needs. My goal is cash generation. As far as I am concerned the U.S. Dollar will always be King.
I either get a little bit of money from the options expiring worthless, OR a big pile of cash if the option gets exercised. Either way I win. With the volatility of Bitcoin, intertwined with the general volatility of the stock market, I am 100% certain I will be able to buy back the shares, and usually at a price that is less than where I bought them earlier.
As far as I am concerned the most important goal in investing is to have fun doing it. It is a mental challenge that keeps my brain sharp and gives me the opportunity to Win at something. If not for investing and trading then life would suck even more. I am in the final chapter of my life so I am prone to worry about everything. So playing around in the markets is kind of my Safe Harbor. I don't necessarily need the money; I just want to Win and have fun doing it.
Pardon me for being so verbose but I have absolutely nothing better to do than hang out on the net and post here while I am watching the markets.
Good Luck to All Longs.
