Short selling profit calculator1/14/2024 ![]() Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. ![]() Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tasty live, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. (“tasty live”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Tasty live content is created, produced, and provided solely by tastylive, Inc. Because our breakeven price is directly related to our POP, and this breakeven is improved by selling premium, we can consistently improve our POP with premium selling strategies. This credit can be used as a buffer against losses on our position, which grants us an even higher probability of success. When selling options, we collect a credit, which is cash. The ability to make money in multiple ways results in a higher probability of success overall. When selling an option, the stock price can stay the same, go in our favor, or go against us just a bit and we’ll still be profitable at expiration. ![]() We also have more ways to be successful with strategies like this. Knowing this, we can automatically assume that we will have a greater than 50% probability of success if we believe just buying or selling stock outright will yield a coin flip opportunity. When we sell options, we sell them at strikes that are at the money (where the stock price is trading) or out of the money (at a better price than where the stock price is trading).
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |