Showing posts with label OIC. Show all posts
Showing posts with label OIC. Show all posts

22 August 2018

Option Strategy - Long Stock; Stock UP/ DOWN since Purchase - what next?

Long Stock, Stock UP since purchase

Next steps

1. Take no action - monitor price and change strategy if price outlook sours
2. If want to sell at my Target Price --> write Covered Calls
    - look for Strikes = stock target price, short time to expiration, high option premium
    - at least gain premium from selling
3. Buy Protective Put to protect downside, but require cash outlay to purchase
    - protective put will "kick in" when price drops to strike price
    - "insurance" is valid until expiration date

*Credit: OIC Beginners - Managing Stock Positions