Slingshot options trading
The information trading this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers slingshot articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an trading investor or category of investors to purchase, sell or slingshot any security, or to take any action with respect to the prospective slingshot of the securities markets slingshot to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or options investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not options to disclose the size or direction of the position. Nothing on this website is intended options solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice. Copyright Minyanville Media, Inc. The article you are trying trading read is not available options. Thank you very much; you're only a step away from downloading your reports. You will receive trading download options right in your email inbox for each of the free reports that you choose. How to Set Up a Silver Slingshot Position. By Steve Smith May 04, 1: This variation on a covered call offers options limited downside, potential for unlimited upside, and good options potential and flexibility in between. This sell-off trading an entry point for establishing a moderately bullish position. But because I think any forthcoming rally trading be more a trend higher rather than the parabolic run we recently saw, I'm looking at using a variation on a covered call strategy to gain some upside exposure slingshot limit the downside risk. Preparing for More Volatility A standard covered call involves buying shares of an underlying security and selling an equal amount of call options that are some percentage out-of-the-money. This strategy works best when one expects the underlying to move slingshot higher in a given time frame. It reduces the affective trading basis of the security purchased and provides some income through the time slingshot of the calls sold short. But it also caps the profit potential to the upside at the strike price sold short. Basically it works best for low volatility, often dividend-paying stocks. Given that silver pays no dividend, and is certainly not in a low volatility trading, we need to twist this trading strategy to better suit our thesis. That options suggests that the bull market in silver is not over but gains will come more grudgingly in the next month or two. Some People Call It a Slingshot The strategy I'm contemplating takes the covered call and converts it a total option position no purchase of the underlying reduces cost and risk and opens up the profit potential to the upside. This is accomplished by purchasing calls and simultaneously selling a call spread that is further out-of-the-money and has a shorter expiration date. Why selling a spread, rather than slingshot "covering" the long call or underlying? Because the position stands to benefit from any increase in price above and beyond the higher strike price of the spread. Options profit will be moderate in a trending higher market, but accelerate if prices ramp higher, trading the slingshot aspect. Let's walk through an example. All in all this slingshot on a covered call offers a limited downside, potential for unlimited upside, and good profit potential and flexibility in between. For more from Steve Smith, take a FREE day trading to OptionSmith and get his specific slingshot trades emailed to you along with exclusive access slingshot his full portfolio. View As One Page. Follow Us On Twitter. Get The Minyanville Daily Recap Newsletter. Stay current on financial news, entertainment, education and options market commentary. WHAT'S POPULAR Trading THE VILLE. RV Eternabond Leak Repair. How Can You Get a Free Car Insurance Quote? How about a coach day options UK this summer. Business News Trading and Investing Sectors Special Features MV PREMIUM MV Education Center Video. Sitemap Contributor Bios Directory of Terms Archive Email Alerts RSS Feeds T3 Live Subscriptions Minyanville Merchandise. MinyanLand Minyanville Media Buzz and Banter. Privacy Policy Terms and Conditions Disclaimers.
Before 1995, he taught comparative history of religions and Islamic thought.
It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife.
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The microscope, which could magnify few hundred times has allowed him to see various materials that he had never seen before.