With the recent decline in energy prices, most energy related stocks have been hammered. As these stocks fall lower some investors are left holding short put contracts that are deep in-the-money and they are at risk of being assigned shares at a price point they would prefer not to own shares at.
This strategy article for members, looks at a variety of methods that can be employed to work to repair a losing trade and turn it back into a winner.
This strategy article for members is 1600 words in length and requires 6 pages if printed.
For members, if you have questions on the repairs, email me or use the members only forums.
The rest of this strategy article is for FullyInformed members.
Repair Strategies For Devon Stock (DVN) In-The-Money Short Puts – Investor Questions
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Please read the full disclaimer.