So a member of my trading room had a question regarding the gains on his puts (shoutout M2).
I feel like my put gains suck. $TSLA from 301.5 to 294 and I only gained 20%
While I’m not one to argue with 20% gains, there’s a simple way to figure it out. I don’t speak much of the option greeks, but I strongly recommend anyone trading options learn them.
So how do you get better returns on puts? Use the greeks…namely Delta. Here’s a quick transcript of my answer from the room:
Obviously there are more in-depth ways to go about it. A quick Google search on Options Delta will give you ample articles. If you’re just starting out with options I find myself recommending the obvious, Investopedia, but a lesser known site more often OptionsPlaybook.