Stocks & Commodities V. 29:7 (47): Explore Your Options by Tom Gentile

Stocks & Commodities V. 29:7 (47): Explore Your Options by Tom Gentile
Item# 115EYOPDF
Availability: In Stock

Product Description

Explore Your Options by Tom Gentile


If Iím bearish on a stock but wish to own shares at lower levels, would an out-of-the-money (Otm) long put broken butterfly through assignment be a win-win spread to consider? I like the idea of participating in larger dollar-priced stocks such as Google (Goog) or Apple (Aapl) for a credit with these two linked but somewhat different objectives in mind. At the same time, I am not completely sure of all the risks involved. Any light you shed on this would be greatly appreciated.

Designing an OTM broken butterfly can serve both your stated objectives of profiting on a bearish move in share price and build a long stock position at lower prices. However, there are no guarantees that if the former condition is met, the other condition of assignment will result in a profitable starting point for accumulating shares.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order