The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. Today's call focuses on how we can use option strategies to protect gains. This is mostly for stock investors. I think that this is important just as we wrap up February here because February was such a volatile month. We had so much volatility particularly in the beginning of the month with stocks falling really, really hard. People are now asking and we’re getting questions and we see it all over the place. “How do we protect ourselves from gains? If we had a stock portfolio, how could we have protected some of the gains that we had?” There’s a couple of ways you can do it. We’ll cover three general strategies. There’s obviously a lot more that we can cover in other podcast, but I’ll take the top three or not top three, but the ones that are most often talked about. The first way that you could’ve protected gains is with a long put option. If you’re long stock and we’ll assume for the rest of the podcast here that you're long stock. If you’re