I have no problem averaging down on a stock.
But the investment thesis must remain intact.
If the stock falls because of temporary sentiment while the business remains strong, lower prices can create opportunities.
If the business deteriorates, buying more just because it's cheaper can make a bad investment worse.
A lower price is not a thesis.
Know what you own and why you own it.
Potential shopping list for next week:
1. $BE
Started a position this week on the dip, might add more on further weakness.
7. $NFLX
No position yet.
@TheRonnieVShow @DCAOptimizer is showing 4X DCA.
IV relatively low so might make sense to play it via LEAPS.
8. $OMDA
No position yet.
@mvcinvesting got me interested in this one.
Did some research a while ago but decided not to get in because it's not a good candidate for selling options (low liquidity, wide bid-ask).
So if I'm going to play it, I'll probably just go long shares.
No LEAPS since IV is high.
A stock offering unusually high option premiums isn't necessarily a great opportunity.
Sometimes, the market is pricing in real risks:
- Weak balance sheet
- Declining margins
- Excessive dilution
- Uncertain business outlook
- Deteriorating fundamentals
Don't confuse a high premium with a high-quality trade.
The goal isn't to collect the most premium.
It's to get paid well for taking risks you're willing to accept.
I was already feeling sick today and was hoping for a quiet, uneventful day in the market so I could just rest...
Then the market opened.
Apparently, it had other plans for today. 😂
Wild moves.
$QQQ down 4.5% today and 13% from the highs, now officially in correction territory.
$NBIS below $120.
Good thing I have names like $OSCR, $ELF, and $CELH holding up relatively well, which helps keep my drawdown much smaller than that of some folks who are heavily concentrated in AI names or $NBIS.
$NBIS
I bought the dip, and the dip of the dip, and the dip of the dip of the dip, but I wasn't expecting the dip of the dip of the dip of the dip.
If it keeps dipping, I might need to dig deep and deposit more money into my brokerage. Maybe even sell some gold. Maybe even take out a loan against my home. 😂
Not financial advice lol
$2,630 in realized profit from selling options today.
Stocks traded:
$PGY
