I have 100 shares of Meta and wanted to buy some protection after the earnings.
I was debating between just buying a protected put ($650) or do a debit spread- buy a $650 put(0.3 delta) and sell a $570(.1 delta) put. Expiry is 5/1 for all.
Ended up going with debit spread for this trade (ad I wanted to try my first vertical spread trade)
What's a good heuristic to choose between buying a put vs debit spread?
Like I said, I'm new to verical spreads. The most advanced stuff I've done is the wheel strategy.
Posted by Responsible_Nerve_52
1 Comment
Better to average down if earnings are shit and stock flies down. Throwing cash away on expected move or eyeballing the extent of the move to cap the risk and reward to the downside is gambling.