
Ep. 7: The Secret To Capping Downside Risk From Earnings With Chris Gessel & Justin Nielsen
Investing With IBD
00:00
How to Trade Options for Profit
"It's not a really good option trade when you look at it from that point of view, because you're going to get the volatility crush," he says. "As long as it closes above the strike price, it's a winner and you want to take the stock." The strategy can be very tempting if you see that leverage is on your side - but there always comes a time where everything goes against you,. He adds: "You can't have a lot of option positions at the same time because they'll all go to zero"
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