Market corrections and subsequent rallies often leave investors whipsawed. Instead of making a profit often they end up with losses as the market correction draws them into the short side of trades and the rally sees them trapped holding short positions intent on profiting if the market had collapsed further. As the rally strengthens those who are short worry more. It can become devastating for an investor and losing capital often leaves an emotional scar on investors. It is what keeps many investors from returning to stocks.
Today an investor asks for some tips on his short stock positions. Let’s review his question and see some tips.
The focus of all trades should be to keep them profitable. To do that often means taking losing trades and turning them into winners.
As I am not a financial planner or advisor and have no such credentials I cannot make recommendations. That said I can offer some tips that may assist especially when we look at another investor who wrote me with the same problem in his position in Disney stock.
Strategy Discussion On Repairing In The Money Naked Calls
This strategy discussion article on how to repair or rescue in the money naked calls is 1600 words in length and will require 5 pages if printed. It is for members only.
This strategy article on repairing in the money naked calls is for FullyInformed Members.
Rescuing In The Money Naked Calls
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. The author assumes no liability for your investment decisions. Read the full disclaimer.
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