Investor Questions On Underwater Positions
When markets correct such as we have been experiencing over the past couple of weeks, many times investors who sell options for income find themselves at risk of having to commit capital to unwanted stocks or having to take a loss to exit a losing trade.
There are though strategies an investor can use to repair a trade and recover from a substantial loss or capital commitment.
In this article, an investors emailed three positions that are deep in-the-money in Applied Materials Stock (AMAT), Marathon Petroleum Stock (MPC) and TLT – iShares 20+ Year Treasury Bond ETF.
Here are some rescue tips for investors to consider which can be applied to recover from possible losses.
This trade strategy article is for FullyInformed Members.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing can be risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Nothing you read are recommendations. FullyInformed.com is for educational and entertainment purposes only. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. Some positions in mentioned stocks may already be held or are being adjusted. Read the full disclaimer.
