SpaceX Stock is Dropping, But My Portfolio Isn't Feeling the Gravity

Just about three weeks ago, I shared that I took a position in SpaceX. Fast forward to today, and I am sitting on a 20% paper loss.

Am I panicking? Not even a little.

Here is the truth: when you trade high-growth, high-volatility assets, the price action is only half the story. The implied volatility (IV) on SpaceX right now is massive, and that is where the magic happens.

Because the IV is so high, the premiums collected from selling covered calls have been incredibly lucrative. While the underlying stock price has taken a temporary hit, the options premium is doing its job, mitigating the downside, lowering my cost basis, and generating consistent cash flow in the process.

Market downturns are stressful if you are just holding shares and hoping for the best. But when you have a mechanical options strategy in play, volatility becomes a tool rather than a threat.

I am comfortable playing the long game here.

Are you holding through the current volatility, or using options to cushion the fall? Let me know your strategy below.

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