StockFetcher Forums · General Discussion · Opinions on option to protect gain<< >>Post Follow-up
four
5,087 posts
msg #136055
Ignore four
5/25/2017 11:17:54 AM

I have a 10% gain (as of today) occurring over the last 2 weeks. As you know I have been investigating options--still on learning curve.

Would like opinions on strategy.

-- Instead of selling and taking the gain on stock... Would you recommend a MARRIED PUT aka PROTECTIVE PUT or, instead, a COVERED CALL ? Other ideas ??

Thanks

c1916
77 posts
msg #136057
Ignore c1916
5/25/2017 1:52:01 PM

As it happens, I have a similar situation on VEEV reporting today. In this instance, I chose a protective put spread allowing me to sell the stock at (or near) the current level if it breaks down but also enable me to buy it back at a "discount" if the sold put comes into play because I do want to remain long in the stock. If nothing happens to the stock or if it spikes higher, I'm out a little insurance.

If I was less concerned about keeping the stock, I'd consider a collar.

I think the key to answering your question is dependent upon whether you really want to still be in the stock going forward. If you do, some protective put is more appropriate than selling a call.

gmg733
788 posts
msg #136061
Ignore gmg733
5/25/2017 3:25:52 PM

Two points you made I'd like to point out...

I have a 10% gain (as of today) occurring over the last 2 weeks

-- Instead of selling and taking the gain on stock...

Hum hum. :) What is your exit strategy? When would you sell the stock?
_______

The options strategy would depend on the stock you hold and its current volatility.

four
5,087 posts
msg #136081
Ignore four
5/26/2017 4:50:48 PM

c and gmg

Thanks for the thoughts... so many combinations with options.

Any book or articles online to read--your suggestions?

gmg733
788 posts
msg #136083
Ignore gmg733
modified
5/26/2017 5:19:45 PM

Lots of info. Options are vol plays more than anything. I suggest this...

www.tastytrade.com

Legit guys and gals trading options with tons of great research. Watch some of the Market Measure shows. Glad to answer questions if you have them.

pthomas215
1,251 posts
msg #136086
Ignore pthomas215
5/27/2017 12:18:01 AM

Trade like Chuck.

StockFetcher Forums · General Discussion · Opinions on option to protect gain<< >>Post Follow-up

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