I never really thought about it, but a good strategy would be to sell out of the money puts at your loss point depending on if you’re bullish on a stock. I always tell myself I should set stop loss orders at -5% on all my stock purchases, but I never do, and it ends up hurting my portfolio. This way, I could make some extra cash immediately from selling the contract, and the worst case is I have to [...]
The story I got burned by options a couple years ago, and have stayed away ever since. But in the last few days, I’ve been learning how to manage risk using options, especially by using spreads. I decided to try out some spreads today in my optionshouse practice account. WARNING: If you are not familiar with options, the next part is going to be gibberish. Use Google to find a good resource on educating yourself about options if you are [...]
It looks like Redhat is about to rally Stock up if it goes past $21! It could really zoom. The support is built up long term. I signed up for an options account with Scottrade today. It will allow me to: Buy puts and calls to open Write covered calls It’s too bad they don’t offer naked put writing and selling to close. I would have liked to play the game of just trading pure options without ever exercising them.
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