Corrections and pullbacks are common in Bull Markets. The pullback on Tuesday March 21 saw my inbox flooded with questions for advice and suggestions on fixing trades.
A lot of the questions were similar. Investors held on to short put option positions as the market fell apart. Many by the close of the day were down quite a long way.
This article is longer than it was originally intended but it touches on key aspects of deciding when to roll-down or get out of a position and how to protect the capital that is being used, from losses. It looks at ways to repair the trade once basic principles of investing have been reviewed.
Although I am focusing on Intel Stock, these tips and suggestions can be used on any stock not just Intel Stock.
This repair strategy article is 1600 words in length and requires 5 pages if printed. It is for FullyInformed Members.
Knowing When To Roll-Down or Get Out Of A Short Put Trade
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