OPTIONS Trading : TEM,RDDT,HOOD

 As an active options trader, I recently executed a series of trades.

On February 11, 2025, at 10:58 AM ET, I sold 1 contract of RDDT $200.00 Put expiring on 2/14 for an impressive $820.00 per contract. This trade reflects my bullish outlook on Reddit's stock performance in the short term. The high premium collected suggests significant market volatility and investor interest in RDDT options.

To finance the RDDT put sale, I strategically closed two previously opened positions:

1. Robinhood (HOOD) Put Purchase:
   On February 11, 2025, at 10:51 AM ET, I bought back 1 contract of HOOD $44.00 Put expiring on 2/14 for $19.00 per contract. This decision was likely influenced by HOOD's recent price movements, with the stock closing at $55.86 on February 7, 2025, showing a 5.06% increase28.
2. Tempus AI (TEM) Put Transactions:
   • On February 10, 2025, at 10:23 AM ET, I sold 1 contract of TEM $60.00 Put expiring on 2/21 for $131.00 per contract.
   • The following day, February 11, 2025, at 10:52 AM ET, I bought back the same TEM put for $23.00 per contract.

This quick turnaround on the TEM put resulted in a profit of $108 per contract ($131 - $23), showcasing the potential for rapid gains in options trading when market conditions align favorably.

The options market has been particularly active, with the r/stocks subreddit hosting daily discussions on options trading17. The current market sentiment appears to be cautiously optimistic, with the Fear & Greed Index showing a reading of 39 (Fear) for HOOD stock4.

By closing out the HOOD and TEM put positions, I effectively reduced my exposure to potential downside risks in these stocks. This allowed me to reallocate capital towards the more lucrative RDDT put sale, demonstrating the importance of portfolio rebalancing and risk management in options trading.

Conclusion

These trades highlight the dynamic nature of options trading and the importance of staying informed about market trends and individual stock performances. By carefully timing entries and exits and balancing bullish and bearish positions, it's possible to create opportunities for profit while managing overall portfolio risk.