Swing for the fences with this high-risk, high reward strategy.
Perfect for trades you think could tank if they miss, but that you’re not comfortable enough with to be short the stock if they don’t miss.
Buy a put option with a strike price below the current price of the stock.
This is an aggressive strategy because it requires the stock to move lower at high velocity in order to profit.
The reward for being right can be extremely high, with gains of 5x, 10x, or higher after some large earnings moves.