Strategy Guide

Which strategy fits which market environment?

Hyperstock supports three strategies. After this guide, you'll know when to use each one.

Three Strategies at a Glance

Strategy 1: Sell Put

In one line: collect rent, willing to buy lower.

When to use:

• You're bullish on the stock and don't expect a big drop
• You're willing to buy at the strike price
• You want premium as "passive income"

How to run it (Hyperstock):

1. Enter the ticker
2. Select "Sell Put"
3. Set expiration range (30–45 days recommended)
4. Review AI-recommended contracts
5. Pick high Score, assignment probability < 10%
6. Place the order at your broker

Core tips:

• Choose OTM: strike below current price, lower assignment odds
• Shorter duration: 30–45 days — time decay is fastest
• Avoid earnings: no new positions within 2 weeks before reports
• Diversify — don't put all capital in one name

Strategy 2: Bull Call Spread

In one line: bullish, but don't want to pay full call premium.

When to use:

• You expect a moderate rise (not a moonshot)
• Long calls are too expensive — you want to cut cost
• You want a defined max loss

How it works:

• Buy a lower-strike call (pay premium)
• Sell a higher-strike call (collect premium)
• The short leg subsidizes cost but caps max profit

Example:

AAPL at $190

You expect a move to $200–210

Buy AAPL $195 Call (Jun) → pay $5.00

Sell AAPL $205 Call (Jun) → collect $2.00

Net debit: $3.00

Max profit: $205 − $195 − $3 = $7.00 (+233%)

Breakeven: $195 + $3 = $198

Max loss: $3.00 (your net debit)

How to run it (Hyperstock):

1. Select "Smart Bullish Spread"
2. Enter ticker and expected price range (e.g. $200–$210)
3. AI matches optimal leg pairs
4. Review net debit, max profit, breakeven
5. If satisfied, place at your broker

Strategy 3: Bear Put Spread

In one line: bearish, but naked puts are too expensive.

When to use:

• You expect a moderate decline
• Long puts are costly — you want to save premium
• You want defined risk

How it works:

• Buy a higher-strike put (pay premium)
• Sell a lower-strike put (collect premium)
• The short leg lowers cost but caps profit

Example:

TSLA at $250

You expect a drop to $230–240

Buy TSLA $250 Put (Jun) → pay $8.00

Sell TSLA $235 Put (Jun) → collect $3.50

Net debit: $4.50

Max profit: $250 − $235 − $4.50 = $10.50 (+233%)

Breakeven: $250 − $4.50 = $245.50

Max loss: $4.50 (your net debit)

How to run it (Hyperstock):

1. Select "Smart Bearish Spread"
2. Enter ticker and expected price range (e.g. $230–$240)
3. AI matches optimal pairs
4. Review net debit, max profit, breakeven
5. If satisfied, place at your broker

Strategy Selection Decision Tree

Where do you think this stock is headed?

─ Won't drop much (neutral to bullish) → Sell Put (collect rent)

─ Moderate rise → Bull Call Spread

─ Moderate decline → Bear Put Spread

─ Sharp rally → Buy calls outright (not on Hyperstock yet — use your broker)

─ Sharp selloff → Buy puts outright (not on Hyperstock yet — use your broker)

Hyperstock focuses on "moderate" scenarios for now.

Premium selling and spreads tend to have higher win rates and suit long-term trading. Naked long calls/puts have lower win rates and feel more like gambling.

Risk Management: Three Rules

Rule 1: Position sizing

• Margin for a single Sell Put ≤ 10% of total capital
• Same-sector names combined ≤ 30% of total capital
• Always keep 30% cash for assignment and adding positions

Rule 2: Assignment probability limits

Rule 3: Time rules

• 2 weeks before earnings: no new positions
• 1 week before expiry: evaluate whether to roll
• DTE (days to expiration) < 7: consider closing or rolling

Combining Strategies

Advanced traders can mix like this:

Rent collection + hedge

• Sell Put for income in normal markets
• When the broad market looks weak, add Bear Put Spread as a hedge
• Like buying insurance

After assignment: Covered Call

• Sell Put gets assigned — you own shares
• Then sell calls (covered call) for more premium
• That's the Wheel strategy — income on a loop

Different names, different strategies

• Large-cap blue chips (AAPL, MSFT): Sell Put (lower vol, safer)
• Growth names (NVDA, TSLA): Bull Call Spread (higher vol, spread controls risk)
• Weak names / hedge: Bear Put Spread (protect holdings)

Validate Your Idea with Hyperstock

Before any strategy decision, ask the AI: (feature coming soon)

1. I want to Sell Put AAPL $180 — what's the assignment probability?
2. I think AAPL hits $200 — what's the best Bull Call Spread pairing?
3. How do the Greeks look on this contract? What's Theta? Vega?

Let data drive decisions — don't guess.

FAQ

Q: Which strategy should beginners learn first?

A: Sell Put. Simplest, most intuitive, highest win rate. Master it before spreads.

Q: Why do spread strategies cost 2 Tokens?

A: AI has to compute pairings across two legs — roughly double the work of a single contract.

Q: Can I run multiple strategies at once?

A: Yes. E.g. Sell Put MSFT + Bull Call Spread NVDA — they don't conflict. Just size positions and keep enough capital.

Q: What if I picked the wrong strategy?

A: You can close options (buy to close). If you're wrong, cut loss early — don't hold and hope.

Hyperstock.net — Pick the right strategy. Use the right tool.