The strategy of averaging consists of buying more shares than you already own, when prices are lower. That is to say, you bought shares, but the price in the market drops a lot and those shares you had decreased in value. This strategy aims to increase the number of shares in your portfolio so that … Read more

Short selling

The short selling strategy consists of selling shares that you do not yet own and then buying them when their price drops. The broker lends you these shares, since he owns them. So you sell them at a price, and some time later you buy them cheaper to return the loan that the broker made … Read more

Call buying

As we have already seen, when you buy a call it is because you have a bullish view of the market. The underlying asset is expected to rise in price. There are two types of strategies with the purchase of options: 1. Keep the shares: In this case, you want the price of the shares … Read more

Selling covered calls

Selling a call means that you have an obligation to sell shares on the expiry date of the contract, at a certain price defined by the strike, and in return you receive a payment (the premium). What is selling a covered call? Those who use this strategy usually benefit, if things go as expected, from … Read more

Buying Puts

As we have already seen in some examples, when you buy a put it is because you have a bearish view of the market. The underlying asset is expected to go down in price, and the put contract is expected to go up. Those who buy a put have the right to sell shares at … Read more

Selling Puts

Although a put may sound like a bearish scenario, this is not always the case. Whoever sells a put wants the price to end up above the strike price so that the buyer does not exercise the right. Remember that the seller of the put is selling the right for which he receives the premium, … Read more