Stock markets are at all time high and a lot of investors may be thinking of what to do with the profits they have made on stocks. If you are one of them, these are the things you can do:
1. Sell part of your holdings and book profits: This will help you to re-enter the stock if it falls again or you can get into another stock.
2. Sell all stocks and buy calls: Some investors do not want to sell their stock holdings thinking that it may go up even further. For them it is suggested to do the “Stock Replacement Strategy”. In this strategy, stock profits are taken and replaced by derivatives.
For example Mr. Amit bought a stock at 100 and now its at 200, he still feels that the stock will go up but do not want to miss out on the profits. So he sells the stock, book profits and buy one ATM call. Now this CE is bought from the profit made in the stock. If the stock moves up, Amit will profit from the Call bought else he can exit at a small loss. By doing this he has ensured booking profits in the stock at the right time, the loss in the call will not hurt much, but the joy in selling the stock at the right time will be more.
Some investors are reluctant to sell stocks they can do this:
3. Buy At The Money Puts: This is known as married puts to save the gains made from the stock or lock-in-the-profits. There is no point in doing married put strategy if you do not hold a lot of stocks (equal to lot size of the derivative of that stock) of a company. In that case its better to sell at least a part of the holdings. See point 1.
Or do this:
4. Buy Out of The Money Puts: If you do not hold enough stocks of a company but still want to lock in the profits you can buy slightly out of money puts. These are not exactly married puts, but will ensure at least partial profit booking even if the stock falls 10%. Out of the Money Puts will be slightly cheaper too and will not hurt your pocket.
You Can Read More On My Site
What you should do now1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.
2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.
3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.
TestimonialsWhat Traders Say About My Course
Course fees: Click here to know the course fees.
Here is complete process of my course1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.
Within one month you can start trading on your own. No need to depend on anyone once you are on your own.
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.