4 Options Trades For Arch Coal (Video)

 |  About: Arch Coal Inc (ACI)
by: Joe Springer

In the following video, we discuss strategies for buying and selling calls and puts, using Arch Coal (NYSE:ACI) as an example:

  • Buying calls is a way to make outsized profits, but comes with the likelihood of losing money.
  • Buying a put is a way to profit from or protect a stock selling off, but also comes with the likelihood of losing money.
  • Writing calls is a risky way to go short on a stock unless you own the stock, in which case the calls are "covered" and the trade is the equivalent of writing a put.
  • Writing a cash-secured put means selling the right to sell a stock at a strike price by an expiration date.

Disclosure: I am long ACI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.