Using the “right” tool.

Are you using the right tools to deal with this market? In other words how are you softening the blow to the downside or preparing for a future upside. Learning to use options as a tool can help. What if I said that you could win 66% of the time? Would that interest you? Well 66% of covered calls expire worthless. That is, the buyer of the call lost their premium to the seller. So if you want to learn how to sell covered calls, look to optionsdojo. Now is a good time to sell short term calls against your long term positions. The market could snap back with a trade deal but who knows, so sell calls way out of the money and collect that premium. If you are leveraging for an uptick you would be buying the calls. The key there is that you know how much you can lose, that is the price you paid for the option. So in some cases it may pay to be a buyer. As a buyer you don’t limit your upside but define your downside.

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.

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