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Finding Great Trades in a Challenging Market...READ MORE
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Finding Great Trades in a Challenging Market

Volatility is a challenge. It is a challenge in the sense that it carries both benefits and risks. The risks are obvious since volatility is associated with down side moves in price. These present challenges to the investor who is prone to panic or worried about losses of any kind.

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The flip side to that challenge is that the increased volatility will create opportunities. This is true in a number of ways. Some of the down side moves will be over done and that creates opportunities for value investors, for example.

In other cases, options will become generously priced as we explain in our latest article and that sets up trading opportunities for individual traders willing to jump into options with strategies that limit risk. The up side of these strategies is that they limit risk, but some investors avoid them because they consider them to be confusing.

We strive to alleviate that problem by explaining one of those strategies in detail and we present an example of the strategy using actual market prices to demonstrate the potential gains and the risks that are truly available in the markets with this type of strategy.

To learn more about the strategy and the specific trading opportunity we found, click here.

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