Comments on: Screening Stocks for Shorting http://theessentialsoftrading.com/Blog/index.php/2009/02/25/screening-stocks-for-shorting/ Information and resources for those looking to learn about trading and the markets Wed, 23 May 2012 13:10:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mark Wolfinger http://theessentialsoftrading.com/Blog/index.php/2009/02/25/screening-stocks-for-shorting/#comment-13510 Mark Wolfinger Wed, 25 Feb 2009 15:24:35 +0000 http://www.theessentialsoftrading.com/Blog/?p=1027#comment-13510 "I feel more and more forced to diversify to options." Danger. Danger. Diversifying into options is a sound idea. But you must proceed in the right order. Please do not begin with buying puts. It's important thy you understand options and how to use them wisely. That comes first. Only then can you select your stocks and apply a good option strategy. Buying puts seems 'obvious,' but it's very difficult to consistently earn profits when you buy options. Please take the time to learn about alternatives: buy put spreads, sell call spreads, collars. You may even feel comfortable with market neutral strategies, such as iron condors. Mark “I feel more and more forced to diversify to options.”

Danger. Danger.

Diversifying into options is a sound idea. But you must proceed in the right order. Please do not begin with buying puts. It’s important thy you understand options and how to use them wisely. That comes first. Only then can you select your stocks and apply a good option strategy.

Buying puts seems ‘obvious,’ but it’s very difficult to consistently earn profits when you buy options. Please take the time to learn about alternatives: buy put spreads, sell call spreads, collars. You may even feel comfortable with market neutral strategies, such as iron condors.

Mark

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