Be Fearful When Others Have FOMO
It’s natural to have some FOMO (Fear of missing out) after the rally we’ve had off the April lows. I have some myself. At the end of March, I guessed correctly that shares of Robinhood Markets (HOOD), a Portfolio Armor top ten name at the time, were probably near a bottom. As I wrote then, in a pre-market note, when the futures were a sea of red:
I’m lowering the strike on these HOOD puts by $2. This puts our break even on the stock at $34, which is about its 200-day exponential moving average, which seems like a plausible near-term bottom for it.
But instead of buying OTM (out of the money) calls on HOOD, I sold puts on it.
The stock is Robinhood Markets (HOOD 0.05%↑), which I think would be a great long term holding if we can get it in the $30s. So I placed a GTC order to sell the $38 strike put on it expiring on May 9th for $4. If that put gets exercised, I will have effectively bought the stock for $34. The max gain on one contract is $400, the max loss is $3,400 (assuming the put gets exercised, and then the stock goes to zero), and the break even is with HOOD at $34.
This trade hasn’t filled yet. This trade filled at $4.30 on 4/3/2025.
Avoiding FOMO And ROMO
I see shares …
Full story available on Benzinga.com
Be Fearful When Others Have FOMO
It’s natural to have some FOMO (Fear of missing out) after the rally we’ve had off the April lows. I have some myself. At the end of March, I guessed correctly that shares of Robinhood Markets (HOOD), a Portfolio Armor top ten name at the time, were probably near a bottom. As I wrote then, in a pre-market note, when the futures were a sea of red:
I’m lowering the strike on these HOOD puts by $2. This puts our break even on the stock at $34, which is about its 200-day exponential moving average, which seems like a plausible near-term bottom for it.
But instead of buying OTM (out of the money) calls on HOOD, I sold puts on it.
The stock is Robinhood Markets (HOOD 0.05%↑), which I think would be a great long term holding if we can get it in the $30s. So I placed a GTC order to sell the $38 strike put on it expiring on May 9th for $4. If that put gets exercised, I will have effectively bought the stock for $34. The max gain on one contract is $400, the max loss is $3,400 (assuming the put gets exercised, and then the stock goes to zero), and the break even is with HOOD at $34.
This trade hasn’t filled yet. This trade filled at $4.30 on 4/3/2025.
Avoiding FOMO And ROMO
I see shares …
Full story available on Benzinga.com
Be Fearful When Others Have FOMO
It’s natural to have some FOMO (Fear of missing out) after the rally we’ve had off the April lows. I have some myself. At the end of March, I guessed correctly that shares of Robinhood Markets (HOOD), a Portfolio Armor top ten name at the time, were probably near a bottom. As I wrote then, in a pre-market note, when the futures were a sea of red:
I’m lowering the strike on these HOOD puts by $2. This puts our break even on the stock at $34, which is about its 200-day exponential moving average, which seems like a plausible near-term bottom for it.
But instead of buying OTM (out of the money) calls on HOOD, I sold puts on it.
The stock is Robinhood Markets (HOOD 0.05%↑), which I think would be a great long term holding if we can get it in the $30s. So I placed a GTC order to sell the $38 strike put on it expiring on May 9th for $4. If that put gets exercised, I will have effectively bought the stock for $34. The max gain on one contract is $400, the max loss is $3,400 (assuming the put gets exercised, and then the stock goes to zero), and the break even is with HOOD at $34. This trade hasn’t filled yet. This trade filled at $4.30 on 4/3/2025.
Avoiding FOMO And ROMO
I see shares …Full story available on Benzinga.com Read Morecontributors, Equities, Expert Ideas, Options, Opinion, Markets, Trading Ideas, Equities, Options, Opinion, Markets, Trading Ideas, Benzinga Markets
