To The Moon

During volatile periods — like the Trump-era tariff headlines — the market becomes a battlefield of fear and hope. When IWM was trading at $209, many traders jumped in, hoping to catch a rebound to $210, $212, or even $214. They chased the price, trying to scalp a quick win. But when the market turned against them, reality hit hard.

I took a different route — one rooted in logic, not emotion.

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📉 The Market Dropped, But My Capital Was Protected

After the tariff scare intensified, IWM dropped to $202.30. Traders who bought at $209 were staring at a $6.70 loss per share, or $670 on 100 shares. It’s a tough pill to swallow, especially when the decision was driven by short-term optimism.

But instead of buying IWM outright at $209, I sold a put option with a $207 strike. This single move allowed me to earn $3.89 in premium, which significantly softened any potential downside.

My new effective cost basis became $203.11 — calculated by subtracting the $3.89 premium from the $207 strike price. So even as IWM traded at $202.30, my unrealized loss was only $0.81 per share, or just $81 per 100 shares.

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🛡️ Why Selling Puts Was the Smarter Choice

While others chased the price hoping for a rally to $214, I positioned myself with limited downside and guaranteed income upfront. Selling a put gave me two advantages:

1. If IWM stayed above $207, I’d keep the $389 in premium without buying any shares.

2. If IWM dropped below $207, I’d be assigned shares — but at a better price than those who bought at $209 — effectively owning IWM at $203.11.

This strategy turned a sharp market drop into a mild drawdown, while others suffered losses six times larger.

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💼 My Rule: Never Chase, Always Strategize

In volatile markets, it’s easy to get caught up in the noise — chasing charts, betting on reversals. But my approach is simple: Let volatility work for me, not against me. During tariff scares, volatility spikes, and that’s when option premiums expand. That’s the moment to act — not by buying recklessly, but by selling options into the fear.

Selling puts lets me earn income while waiting for better entry points — a strategy that’s calmer, more calculated, and far less damaging.

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🧭 Conclusion: Protecting Capital Is the First Step to Growing It

My IWM trade is a small example of how tactical thinking in turbulent times leads to better results. When others chased at $209 and hoped, I sold at $207 and got paid. Instead of hoping for a quick $5 rally, I secured nearly $4 in premium and covered my downside.

This is how I trade the chaos — with composure, confidence, and consistent returns.

@CaptainTiger @TigerEvents @Daily_Discussion @TigerStars @TigerEvents