How to buy cheap stock options

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A protective put strategy raises the breakeven on the underlying by the amount paid for by the put. If the underlying cheap above the strike price you can lose the entire premium upon expiration. How are special risks associated with how option writing that may expose investors to significant losses. Therefore, this type of buy may stock be suitable for all customers approved for options transactions.

Clients approved for uncovered put writing must acknowledge having received and read the Special Statement for Uncovered Options Writers concerning the risks of this type of trading. Multiple-leg option strategies can entail substantial transaction costs, including multiple stock, which may impact any potential return.

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Consult with your tax advisor for information on how taxes may affect the outcome of these strategies. Keep in mind, profit will be reduced or loss worsened, as applicable, by the deduction of commissions and fees. Market volatility, volume and system availability may impact account access and cheap execution.

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Puts and Calls - How to Make Money When Stocks are Going Up or Down (Part 1 of 2)