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Comment by ganeshkrishnan

6 months ago

It doesn't work like this. The stock might fall around $10-$20 every month in the worst case scenario. In which case the premium of $180 will keep rising every week, 90% of which will expire worthless.

You have to buy really farther out or really far off strike both of which have nearly zero probability ( delta is nearly zero and less than 1)

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