With the collapse of stocks in the past week and particularly with the plunge on Friday, I received a number of emails from investors who asked for ideas on how to repair their short put positions, naked as well as credit put spreads, many of which were in-the-money or nearing in-the-money.
Among those was Casey who some members may remember had posted how well he was doing in January selling put options. Unfortunately much of the profit made was being lost with the market pulling back this past week.
This strategy article for members explains a number of strategies to consider to put in place a repair to both recover any losses taken, secure profits already made, uncover what went wrong and correct it and to reduce the risk of capital loss.
This strategy article is 3100 words in length and will need 10 pages if printed.
The rest of this strategy article is for FullyInformed Members.
Repairing Short Put Positions In A Market Collapse – Become A Better Investor – Feb 3 2020
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.