When stocks and indices start to drop, investors will cash out and wait for bullish opportunities. Because of this markets will fall faster than going up; this is something all traders must keep in mind.

There is a way to stay in the markets and to take advantage of the chaos that has sent everyone else running. The advantages and flexibilities of utilizing options is that you can profit from falling stocks.

Sometimes in an up-one-day, down-the-next kind of a scenario, it can be difficult for us to determine where the stock is heading and whether it’s time to buy puts on potential bearish reversal stocks.

One way to be certain is to let the stock decide, for example if the stock fall below the low of the last bearish candlestick, then it’s a go. I normally use a conditional order setting the stock price to trigger the options purchase.

Off course there is no methodology that is foolproof and is able to predict when a stock will fall and when it will happen, I can be sure that I will not missing out on the opportunity.

Another method that I used to get another confirmation is weekly charts as it cut down the daily noises and gives me a better overall picture of the stocks intentions.

“The time is always right to do the right thing” - Martin Luther King, Jr.

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