how to take chance if market start to sell off?

Discussion in 'Trading' started by steet010203, Jan 1, 2002.

  1. what i think is i will buy long term put, and sell short term put.

    short for short term.

    if market really make new low, the gain will be very big
  2. shyhh


    If the market makes new low, your Long Term options will also appreciate, making your profit lower then a outright put position.

    This is not the best strategy for maximum profit although the risk is definately lower then an outright put. If you are certain that the stock is making new low, the best strategy is just to long put.