How to Boost your Stock Returns while Lowering your Risk

1. How to Boost your Stock Returns while Lowering your Risk However, there are other considerations. For one, you are limiting your potential profits. No matter how high the stock rises, you won't sell for more than $50. You can solve this problem by buying your option back, in effect canceling it out. You would do this if you later think the stock will dramatically rise and you don't want to miss the gains to be made. Also, you have not reduced the risk that your stock may drop in price. The only certainty is, should XYZ drop $25, your option will not be exercised - a small consolation. To protect yourself, you may "buy a January 45 put" giving you the right to sell your stock for $45. This is the opposite of what we've reviewed here, and is designed to minimize losses, rather than protect gains. Because of the potential for price drops, you should choose a high quality, blue-chip stock that fits your budget, an which offers a stable trading range, solid fundamental, high dividends, and good growth potential. Covered Call Writing is not a reason to own stocks, but the strategy might be of help if you already own them. Prior to opening an account, you must receive and urged to read "Characteristics and Risk of Standardized Options," which is published by the Options Clearing Corporation in cooperation with NASD and all major U.S. stock exchanges. The booklet is available from any broker or financial advisor. https://binarytradingfactory.com/crypto-cash-for-beginners-review/ https://binarytradingfactory.com/700-profit-club-review/ https://neighboursreview.com/pianoforall-review/ https://neighboursreview.com/revive-her-drive-review/