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How to Pick the Right Put Option

Michael Shulman, September 30, 2009

Once you've settled on a lousy company or market segment to short, how do you pick the perfect put option?

An OptionsZone.com survey showed that options traders typically think it is easier to pick the underlying stock for an options trade than it is to choose the correct option once they've decided on the stock. So, I'm here to help.

I'm going to teach you the ground rules of picking put options, the technical indicators to pay attention to, and how to select the right put option.

Next: The Ground Rules

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