Buying put options is a great way to pocket gains when you expect a stock is going to fall.
Future of Wealth Head Trader Lance Ippolito's Weekly Blitz Alerts strategy just capitalized on weakness in American Well Corp. that helped their May 21 $12.50 puts more than double from their entry!
Puts are also an effective way to manage your risk in a position by limiting your losses to a downward move.
Of course, there's a time and place for everything.
So it might seem like the right time to buy put options is when there's a series of down days in the stock market like we had through the middle of this week… But as Lance is about to explain, those are the exact conditions traders will pay top dollar for downside exposure.
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