Stock Options trading to Hedge Stock Portfolios
If you have a Stock position, and are concerned of a Price drop in the medium term, you can use a combination of Stock Options trading in a cost-effective way to hedge the stock. It’s just like buying Insurance for your Stock portfolios. And just like insurance, you can provide various levels of insurance coverage, depending upon the amount of hedge desired. These Stock Option trading combo strategies can provide a substantial amount of protection for long-term stock holdings without having the need to liquidate the stock position. There are several such Stock Option trading combo strategies, and using Options to hedge Stock is one of them.
Protection from Crashes
Use these techniques to protect stock from a small or a big crash using Stock Options trading combination techniques. These are simple stock and options trading strategies and does not require a very detailed understanding of Options markets. There are several such Stock Option trading combination strategies.
Various types of insurance
You can use this technique in different ways depending upon the amount of hedge needed and for any particular timeframe. Using this sophisticated Stock Option trading strategy, traders can decide how much they want to spend for protection of their Stock portfolios, and clearly understand the benefits and limitations of this Stock Option trading strategy.
The techniques are clearly described and explained using a Trading platform. In this Module, you can also use several other Stock Option trading combos. For example, you can use Options to buy Stock at prices that are much lower than what the stock is trading for. This Stock Option trading strategy is discussed in the course “Use Options to Buy Stock at low prices“. This is a powerful stock Option trading strategy
Sell Stock at High Prices
Stock traders will find these techniques very useful, and the concept is simple to understand even if you don’t trade Options regularly. Using Options, you can sell Stock that you hold in your portfolio at much higher prices that what the Stock is currently trading for. This Stock Option trading strategy is discussed in the course “Use Options to sell Stock at High Prices“
For any further information, feel free to contact Option Tiger Experts. Share your details to get a call back. We would be more than pleased to provide assistance in joining any of our online Options trading courses.
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