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Part II of Day Traders and Swing Traders and Options? Maybe!
Before every protective put trade it is possible to calculate The protective put strategy, when used correctly, will allow For example, a stock in the process of a steep decline would be a Everyone wants to find the bottom to buy and go long, catching There is a potential for a very big reward if you pick the Remember, the protective put allows for a large potential upside If you are right, and the stock runs back up, the stock profit Use the formula for maximum loss discussed earlier. Calculate the Maximum Loss = (Stock Price ? Strike Price) + Option Price This protection will save you enough money when you pick a false As seen with the exhaustion example, the protective put strategy Another potential opportunity for using the protective put is in Stocks travel in cycles that can and do form repetitious Although there are many, many forms and styles of technical For a bullish breakout, this level is at the very top of its The "break-out" is normally a rapid, large upward movement that If this were to happen, you would have incurred a large loss However, if you were to apply a protective put strategy with the This difference is the cost of the put. This $2.00 investment is Most professional traders, including day traders and swing _/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/
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