In Review

Today I would like t provide a handy strategy review. Helping to translate your market vision into a hedged option strategy. Note that I say hedged. I do not believe in buying or selling stocks and futures naked, ie with no protection. The same goes with buying options outright. Always spread, is my motto.

Mega Bullish? Buy stock with puts. Just plain Bullish? Buy vertical call spread, sell vertical put spread.

Bullish at lower level with an eye to dividend yield or short term cash generation? Sell cash covered put. Bullish on current dividend yield? Buy stock with Collar.

Particular price target? Do Butterfly with short strike at target.

Neutral to range bound?  Condor, Iron Condor, Iron Butterfly.

First down, then up? Buy call calender spread. First up then down? Buy put calender spread.

Mega Bearish? Sell stock or deep ITM call short with long protective call above it. Just plain  Bearish? Buy vertical put spread, sell vertical call spread.

If any of these strategies are unfamiliar or strange to you, please fell free to contact me at any time. Click the Contact heading above.

Finally, do note that with the possible exception of the short cash covered put, all these strategies are hedged with a well defined maximum loss. I hope this review has been helpful and Happy Trading!


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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

Originally posted here...

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