The Dow is down 5.60% for the month, the S&P 500 is down 5.80% and the Nasdaq is down 9.10%. So now what are you going to do? Jump from the ships deck? If you were a member of optionsdojo you would have learned to hedge your portfolio. By selling covered calls you would have been receiving premium to lower your cost basis, you would have learned to use collars to protect yourself, and you would know how to use PUTS for a stock replacement strategy. So let’s look at that strategy now. Keep in mind if your in a taxable account more consideration needs to take place. If you liquidate your positions but sell PUTS at lower prices what can occur? If the stock moves low enough you’ll own it again at a lower price. If the stock doesn’t you made money waiting. When is the last time you got paid for waiting? To learn more stay tuned for live advice on our platform.
All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections. Invest with an awareness of your skills, experience and risk tolerance. Options are not suitable for all investors and people can and do lose money.