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Originally Posted by ButterflySymmetry
Lost another 6k on Nio yesterday. kind of hoping it goes down more on Mon and Tues so I can buy more shares
Don't buy more shares of NIO
Just Sell puts on it if you want. You will get the stock cheaper if you are wrong and instantly profit if it goes up - The only downside is you miss out if it sky rockets but you already have shares.
I'm thinking of selling 20 puts at $5 strike price june or july expiration for a $1200 premium. 10k gets locked up for 6 months and I make $1200 on it. Seems like a pretty low risk strategy if you wanna buy NIO anyways. You can get a much higher premium if you do $6 or $7 strike price but still cheaper than just buying more shares as they are 7.7 right now.
And as for the shares you hold now - sell covered calls that last a month on half your shares. Most of the time they expire worthless so you can pay yourself dividends on the shares you own.