Understanding Support In A Stock For Selling Put Options – Investor Questions

Understanding Support

On the members forum, an investor posted a question on how to determine support levels for specific stocks.

Investor Questions:

Hi Teddi,

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?

Thanks,

Roger

Some Answers:

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






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