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How to Use Put Options for Downside Protection or Moves

by | Jan 3, 2024

Understanding put options is crucial for traders, especially in the current market environment because we’re seeing a lot of them hit my News Flow Scanner…

Put options are a way for us to protect our long stock positions from potential declines.

Institutional investors often use put options as a form of downside protection for their large stock holdings.

Puts become more expensive during events like earnings reports, similar to how insurance premiums rise in anticipation of potential disasters like a flood or a hurricane.

High-flying stocks like Nvidia and Tesla have more expensive put options due to their high volatility and potential for significant price swings.

While put options can be useful, timing is crucial, making them challenging for retail investors to trade effectively. Be sure to follow the link for my 5-minute video breakdown!

Wednesday’s Top Order Flow: 

  • SQ Sep24 Strike: 67.5 Puts premium: $471,900 ASK BEARISH
    Trade Date: January 3, 2024 Trade Time: 10:40 am
  • C Jan24 Strike: 54 Calls premium: $305,892 ASK BULLISH
    Trade Date: January 3, 2024 Trade Time: 9:41 am
  • ETSY Jan24 12th Strike: 75 Calls premium: $174,425 ABOVE ASK BULLISH
    Trade Date: January 3, 2024 Trade Time: 9:51 am

Note: If no date is listed after the month, it’s the monthly expiration (third Friday). 

Lance Ippolito Trading Team

Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros. 

You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito 

And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx 

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. How to Target 100% Gains — Overnight 

A lot of people don’t know this…

But there’s a way to target overnight returns around 100% or more without looking at stock charts, candlestick patterns or technical setups.

Now I know that sounds a bit crazy…

But it all starts with a trading secret used by the floor at the Chicago Board Options Exchange…

By leveraging this secret, I’ve been able to uncover real tradable opportunities that have paid out around 100% or more overnight…

Granted, we’ve seen moves of all sizes… some real big, some a little more modest… even losses, too — that’s trading for ya! 

But here’s the thing…

I’ve taught hundreds of traders of all skill levels how to target these gains, too…

All without using chart patterns, technicals, or any other commonly taught tactics. Are you ready to be my next student?

Just Go Here for the Full Rundown

The performances displayed here are historical examples based on scanner signals for the time period shown. The profits and performance shown are not based on any sort of typicality as there are no published alerts associated. We make no future earnings claims, and you may lose money.

WRITTEN BY<br>Lance Ippolito

WRITTEN BY
Lance Ippolito

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