Learn how to increase your leverage and take advantage of bearish stocks using long put options.
Want to get more out of your bearish trades? Looking for some additional leverage in your portfolio without all the hassle of shorting stocks? Long puts may be just what you have been looking for. Long puts enable you to amplify the returns you would normally see when shorting a stock and waiting for it to go down. In this course, we teach you the ins and outs of option trading and help you identify and avoid the pitfalls that catch too many options traders.
In this course, you will learn:
- What a long put is and how it functions
- The pros and cons of trading options in your portfolio
- How to choose the best put option
Once you have completed this course you will:
- Know what you have to do to get approved to trade long put options
- Have the confidence to pull the trigger on your first long put options trade
|Choose a Strike Price for a Long Put
|Just as with long calls, the first thing you need to do when buying a put is determine which strike price you would like to buy because it will affect how much risk you will be exposed to in the trade, how much you will have to pay for the put and how volatile the option premium will be.
|Reading: Choose a Strike Price for a Long Put
|Video: Choose a Strike for a Long Put (6:40)
|Quiz: Choosing a Strike Price for a Long Put
|Assignment: Analyze Front-Month Strike Prices on a Put
|Choosing an Expiration Date - Long Puts
|Once you have determined which strike price you would like to buy when entering your long put trade, you next need to decide which expiration date to buy. Making this determination will affect how much you are going to have to spend on the trade and how long you are going to give the underlying stock to move in your desired direction.
|Reading: Choosing an Expiration Date For Long Puts
|Video: Choosing an Expiration Date for Long Puts (5:47)
|Quiz: Choosing an Expiration Date
|Assignment: Choosing an Option Expiration Date - Long Puts
|Executing a Long Put Trade
|Now that you've learned to execute a long call trade, it's time to learn how to execute a long put trade.
|Reading: Executing a Long Put Trade
|Video: Executing A Long Put Trade (3:25)
|Quiz: Executing a Long Put Trade
|Assignment: Paper Trade a Long Put