As an options trader, trying with minimum risk, I've learned that flexibility is the name of the game. My recent adventure with Sound Hound AI (SOUN) perfectly illustrates the art of adapting to market conditions and managing risk.I wanted to test the AI space .
The Strategy Unfolds
My approach with SOUN has been a classic wheel strategy:
- Started with selling put options
- Collected premiums consistently
- Got assigned shares when the put went in-the-money
- Transitioned to covered calls to generate additional income
Key Highlights
- Total premiums collected: $331
- Assigned at $20.62 per share
- Current strategy: Continuing to sell covered calls
The Numbers Tell a Story
Current position:
- Unrealized loss: $268.60
- Holding 100 shares
- Continuing to generate income through options
Lessons Learned
- Market volatility is real
- Premium collection can offset potential losses
- Patience and strategy are crucial
The Road Ahead
While the current position shows a loss, I remain optimistic. The key is to:
- Continue strategic option selling
- Monitor the stock's performance
- Be ready to adjust strategy as needed
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