A top trader once told me, “don’t take risks with your money, take risks with other peoples money.” Such an attitude made many folks on Wall Street rich, and helped fuel a global financial crisis. With ethics, one always wins in the end. To make things clear, when trading short-term, or investing long-term, there’s always risk involved. If anyone advises otherwise, they either lack competence or they’re lying. When trading or advising others, I often use directional strategies that can be reversed if they’re not working.
One of my favorite bullish strategies is a Bull Split-Strike Combo. I employ this strategy when I’m:
- Bullish on an underlying security
- Generally bullish on the broad market
- Want to buy a security at a specific price
With this strategy, I am partially financing the purchase of Call Options, by selling Put Options. This strategy is similar to a synthetic long position, the difference…
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