On the members forum, an investor posted a question on how to determine support levels for specific stocks.
I’m relatively new to the site. Just wondering if you had any specific articles on how you determine support levels for specific stocks which in turn helps you determine your preferred strike when selling puts?
Understanding support levels in a stock is of more value than just selling put options. It can be used to setup a variety of different trades including spreads. It can also be used to repair or rescue a trade that has been caught in a stock pullback or a stock market correction. The Put Options Selling Tool is of significant value in this regard.
This article looks at how to determine where support is in a stock and how to use the Put Options Selling Tool Analysis to assist in both selling options for income and protecting a trade through rolling down or rolling out a position caught in-the-money.
This strategy discussion article is for FullyInformed Members.
Understanding Support In A Stock For Selling Put Options – Investor Questions
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.