I'm just curious about perspective.

    If all your technical analysis indicates a stock is overvalued but it also has an abnormally high EPS, how would you approach?

    Call or put?

    Purely hypothetical

    Trader philosophy
    byu/anonymousdad1991 inoptions



    Posted by anonymousdad1991

    6 Comments

    1. I got all excited because I thought this was about philosophy and mindset, like how to think about trading, but it turned out to just be a boxers or briefs preference-type question.

      For the entirety of the Dotcom bubble — well, except for the end when it burst — all the TA said every tech stock with 8 digit valuations was way overpriced and had no proof of revenue, let alone profit, but people bought those stocks anyway. There’s no accounting for hype.

    2. The set up to your question is 100% directional, you are saying “my theory is that the stock will go up”. Given that, I don’t know why you’d need calls or puts. You want delta? Just buy the stock.

    3. If you’re bullish by calls. If bearish, buy puts. If neutral, do something to capture time decay and/or IV.

      OMMMM!!!! (going back to meditating since there was no philosophy here)

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