Swing trading $RXRX
@squeezekid showed the $RXRX swings in his awesome post here https://afterhour.com/squeezekid/xJr/the-dollarrxrx-gauge and wanted to share how theta sellers use this info.
Scenario: super volatile awesome stock consistently flirts with $6 on the downside and dances with $8 on the upside
Solution: when flirting with 6, sell CSPs. No rolling, happy to be assigned at 6, but usually expires worthless. When dancing with 8, sell CCs for 8. Same scenario - ok to be assigned for 33% swing profit, but usually expires worthless.
Any shares I have over 100 in my port are "free" reinvested *premiums* from selling theta. I intend for any swing *profits* ($200 at a time per 100 shares) to go into my other favorite healthcare stock this year I'm $HIMS. Will be tracking for any interested, I can pretty it up tomorrow