๐๐๐A good options strategy if you want to own
$Taiwan Semiconductor Manufacturing(TSM)$ shares but feel the current price is a bit too high is a cash secured put.
How it works : You sell a put option at a price you would be happy to buy the stock at say $350.
Why It is good for TSM now: You get paid a premium today .
If TSM stays high , you keep the cash as pure profit.
If TSM drops, you are forced to buy the shares but at a discounted price compared to today which is currently trading at USD 374.09.
The risk is you must have the cash ready to buy 100 shares of TSM. If the stock drops, you maybe buying a falling knife.
@Tiger_comments @Tiger_SG @TigerStars @TigerClub @CaptainTiger
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Comments
Thanks for sharing ๐๐