Put Option Strategies for Smarter Trading: How to Protect and Build Capital in Turbulent Markets

4. Swing Trading with Puts: Long and Short or Combined with Calls

The strategy called swing trading is so named because it involves profiting from the very short-term price swings in a stock. A swing trader focuses on the stock rather than on the company, and in highly volatile markets, this approach to trading can be quite effective.

This chapter describes the basic swing trading theory and demonstrates how to recognize the important price patterns that signal entry and exit points from positions. However, beyond this, the chapter also shows how options can play a part in swing trading. The majority of swing trading activity takes place using long and short stock positions. By replacing shares of stock with options, you gain several advantages. ...