Married Put Profits Compared to Stock Only Profits: Using married puts to protect and insure a stock position has certain risk / reward trade-offs. Each position is a little different. Your profit results will depend on your stock selection, how much risk you take with the purchase of the put, and what income methods you apply to the position. Two different investors taking positions in the same stock will likely have different outcomes just because of their individual choices for strike price of the put, what income method to apply, and when during the hold cycle to apply the method. Recently an investor wrote to us about some profit concerns with one of his marred put positions: “The stock DB was bought 10-4-16 using the Married Put. The stock is up 57%. I am only showing a 16% profit because of the Put. Granted Hindsight is 20/20. I realize this…
Tag: position analysis
Analyzing Married Puts with PowerOptions’ Position Analysis Tool
I recently spoke to an investor about a position he had in LITE @ $47.90 +1.30. He wanted my advice on what to do with the married put position. Here at PowerOptions and RadioActiveTrading we provide tools to help investors find, analyze, and manage their investments. We do not make recommendations or give advice on how and when to trade individual stocks or options. So a question like, “What should I do next”, is rather awkward. We do not want to give advice, but will work with the self directed investor to find the information they need to make there own decisions. In this case, the conversation proceeded down the following path: The position was in his Power Options portfolio as a marred put, which enabled both of us to look at the Big Charts graph (available under “more/info”, Charts) for LITE, which had a recent large stock price rise. I asked…
Portfolio Tools offer Trade Management Ideas
Have you been using the PowerOptions Portfolio tools to help track and manage your options positions? If not, now is a great time to start! PowerOptions free trial users and subscribers can enter new positions into the Portfolio directly from the patented Search tools or manually with just a few clicks. Some basic features of the Portfolio tools to help you better track and manage your positions are: Profit and Loss Portfolio tool tracks your current positions as linked trades – meaning your covered call position will have the stock and call option linked together rather than separately. View Original Expected Gain vs. Liquidation Value vs. Future Expiration Value for the entire position, not just the individual leg.