Skip to content

Stock Replacement, A Smart Options Strategy For Traders

In 2018, I wrote about a stock replacement strategy when the market was hitting an all-time high.  With nothing but clear skies, no visible ‘overhead’ on the charts, and an economy seemingly firing on all cylinders, investors might have rightly viewed advice to temper their bullishness with skepticism.

However, that environment and attitude seem worlds away, so I thought it would be a good time to review the use of a Stock Replacement Strategy, with an emphasis on how it reduces risk without limiting upside exposure.

A replacement strategy is essentially replacing ownership of shares with the purchase of call options.  This is a good time to review the process and benefits.

The post Stock Replacement, a Smart Options Strategy for Traders appeared first on Option Sensei.