Account Info
Log Out
English
Back
Download
Log in to access Online Inquiry
Back to the Top

"Can I buy more when the market is down?"

avatar
Moomoo Learn SG wrote a column · Jun 23, 2022 22:25
Because of the pandemic, most of the world's major economies carried out expansionary monetary policies as never before.
After world inflation, one thing is coming, recession.
Any potential economic crisis in the U.S. would still affect countries around the world because of globalization. You may ask, "Can I buy more when the market is down?"
"Can I buy more when the market is down?"
Options were originally designed as a hedging tool. But it's true that trading options is more complicated than trading stocks.
We'd like to introduce some options strategies to you.
[1] If traders believe that the stock would rise, they can buy its call options (long call)
[2] If traders think the stock would fall, they can buy its put options (short put)
Source: moomoo
Source: moomoo
Today we’ll focus on the second one: long put.
If you expect the price of a stock to fall, you could either short sell it, or buy its put options.
Short selling is more risky and costly than buying stock. However, buying a put may offer investors some flexibility.
Now tap the video to look at the key takeaways about the long put strategy.
"Can I buy more when the market is down?"
After learning this video, you can have an exam to test if you really understand options.
"Can I buy more when the market is down?"
For a look at more options knowledge, check out our course.
"Can I buy more when the market is down?"
"Can I buy more when the market is down?"
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
6
+0
3
Translate
Report
125K Views
Comment
Sign in to post a comment
avatar
Moomoo Learn SG
1802Followers
16Following
3118Visitors
Follow