Ask The Institute

Your Education Snapshot:

Welcome to your source for answers to questions about option concepts, strategies, and terminology. A new question and answer is published each week. To view the Ask the Institute archives, click the "Ask the Institute Archive" link below.

Submit Question

Please note, questions WILL NOT be personally answered and may not be chosen for publication on the web site.

Ask the Institute Archive

View the archive of all "Ask the Institute" questions.

This week's question:

DATE: February 27, 2015

Is there a strategy that, in some instances, may help improve the chances of getting out of a losing trade with a small profit?

There is a strategy, known as the option repair strategy, when employed has a goal to make back some or most of the unrealized losses incurred when a purchased option goes against you and becomes a losing trade. To learn more about the option repair strategy, including hypothetical examples, view this segment of "Ask the Institute."

  VIX Snapshot

*Third Party Advertisement