Thursday, August 18, 2011

Buying Put options during bear market conditions

1. Buy stocks options puts that have high volume. Like Bank of america.

2. Buy options that expire in 1 to 2 months to take advantage of the downward momentum.

3. find the price of the option in the option calculator before purchase. Do not buy options that are too high above the option calculator price. May be 5 to 10 percent higher is fine. More than that is not worth it  and the profit potential and also the loss potential becomes high.

4. Diversity put options into 2-3 stock options.

5. This is a great way to make money during these unhealthy times. Better than shorting stocks if done in a proper way.

6. Move money to MB trading where it is easy to buy options and stocks from the same platform.

7. Buy puts when the market rallies for 2-3 days. That is the time to buy puts during bear markets and hold it . If the stocks are in a down slide, profits are sure.

This is the way to make money.

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