Stock Replacement, A Smart Options Strategy For Traders

| April 1, 2022

stock replacementIn 2018, I wrote about a stock replacement strategy when the market was hitting an all-time high. With nothing but clear skies, no visible ‘overhead’ on the charts, and an economy seemingly firing on all cylinders, investors might have rightly viewed advice to temper their bullishness with skepticism.

However, that environment and attitude seem worlds away, so I thought it would be a good time to review the use of a Stock Replacement Strategy, with an emphasis on how it reduces risk without limiting upside exposure.

A replacement strategy is essentially replacing ownership of shares with the purchase of call options. This is a good time to review the process and benefits.

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Category: Options Trading Strategy

About the Author ()

Adrian Collins works as an Outreach Manager at Option Dash. Option Dash is always looking forward to offering the best covered call and cash secured put screener on the internet. Adrian is passionate about spreading knowledge on stock and options trading for the rising investors.