Jan Game Plan: Other Reason I closed out the 99% puts (Patreon)

There were a few reasons i closed out the 99% off puts I sold.

I realized I forgot to explain why I closed out over 1000 put option contracts at just 1% of their original selling price. Although they were nearly worthless, they were still tying up a significant amount of margin. When you sell puts, you need either margin or cash to secure the position; I use margin as what I call my 'safety mattress'.

The reason I freed up this margin is because I anticipate high volatility in January, particularly up to the 17th due to the massive open interest conversion, and also around January 20th for the inauguration. With so many unknowns, I now now have ample margin aka 'dry powder' to capitalize on any significant market dips. I'm particularly hoping for a dip in Tesla and similar stocks.

Stay tuned, I share all I do and Happy New Year