Prudent trading is all about finding high-probability trades and managing them in between with the charts.  Focusing on risk management (and what you can “lose” as opposed to “make”) is key to all successful trading.

All bullish traders are concerned with unforeseen sells offs or gap downs on their positions.

Using option collars are a great way to get some downside insurance “for virtually free” if you are willing to give up some some potential upside in exchange (without being a pig).

Watch this video to learn exactly what the trade is and the benefits it offers with a real example on EL:

 

 

To learn how to create Wealth and Generate Income using our simple Option Strategies, please see Master Trader Option Strategies Series for Investors and Active Traders.  Our unique approach is guaranteed to increase your ability to trade options with confidence with superior reward-risk that doesn’t take a lot of time.

 

Happy trading!  If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com

All the best,

Greg Capra
Managing Director of Master Trader
Pristine’s Founder and Creator of the Pristine Method

Dan Gibby
Chief Options Strategist

Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:

Twitter: @GregCapra
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