Two ways to minimize risk

Here are two ways to minimize risk if you believe a stock is going to move higher:⁠
⁠
1.) Buy the stock and then buy put options for insurance in case it falls.⁠
⁠
✔️ Pro: The put option locks in a guaranteed amount you can sell the stock for in the event it sells off for a certain amount of time.⁠
⁠
❌ Con: The insurance premiums can cut into your potential profit and if the stock doesn't go higher or lower, then you just spent money on insurance.⁠
⁠
2.) Buy a call option on the stock and go straight directional.⁠
⁠
✔️ Pro: If the stock moves higher before options expiration, you make money. Also, you cannot lose more than what you paid for the cost of the option, so your risk is capped as soon as you enter the trade.⁠
⁠
❌ Con: This is a directional trade and the stock must move up before expiration. If the stock does not move up before expiration, your option could expire worthless.⁠
⁠
Which strategy do you like better?⁠

#stockmarket #daytrading #optionstrading

***************************************
Interested In INVESTING? Join Power Trades University:
https://powertradesuniversity.com/joinptu5
***************************************

Power Trades University is stocks and options trading group coaching membership for investors and traders who want a clear education path to go from beginner to confident traders.

You get access to all my stock market courses, option strategies, community forum and my live two hour sessions looking for real trades in the real market.

// Have any Questions? Feel Free to Text Me Directly
THIS IS MY REAL NUMBER 313-251-2260

// GET FREE STOCKS FROM ROBINHOOD AND WEBULL //
Webull: https://www.TheBrownReport.com/freewebullstock
Robinhood: https://www.TheBrownReport.com/freerobinhoodstock

*** FREE STOCK MARKET STARTER KIT AND CHECKLIST ***
Download Here: https://thebrownreport.com/smsp5
- How to read charts, best free software, how to get free stocks for opening a new account and more.

*** FREE STOCK OPTIONS STARTER KIT AND CHECKLIST ***
Download Here https://thebrownreport.com/osp5
-learn how Options work, real life examples, discover the power of leverage and controlling stocks versus owning stocks, learn how to trade high price stocks like Tesla, Amazon, Google and more

// FREE TOOLS to Get You Started in the Stock Market //
https://thebrownreport.com/toolspage5

*********************************************

// CONNECT WITH ME ON SOCIAL
FACEBOOK – https://www.facebook.com/thebrownreport
INSTAGRAM – https://www.instagram.com/brownreport
LINKEDIN - https://www.linkedin.com/in/jasonbrown1124/
TWITTER - https://twitter.com/BROWNREPORT

// P O D C A S T
Listen on iTunes - https://podcasts.apple.com/us/podcast/brown-report-stock-market/id909385126?mt=2
Listen on Stitcher - https://app.stitcher.com/browse/feed/52730/episodes
Listen on Spotify - https://open.spotify.com/show/7zYlxBRZH0gTcZqIkMLQw8

// SEND STUFF BY M A I L TO MY OFFICE
The Brown Report LLC
20836 Hall Rd.
Suite 129
Clinton Township, MI. 48038

Видео Two ways to minimize risk канала Jason Brown