For slightly longer term swingtrading, several days up to a month maybe, how viable would it be to do this:
While attempting to catch a big swing, go long the shares, use 1 long atm put instead of a stoploss (yes i know this is the same as a long call, but hold on..), incase it goes against you and the put gets itm, roll down the put, you keep doing this up to a pre-defined limit, to prevent just burning optionpremium while the stock goes into a deathspiral, sell on a rebounce, or bail after a predefined time.
This would allow for a sloppy entry i suppose, am i missing anything, besides extra costs on premium, but also additional safety.
While attempting to catch a big swing, go long the shares, use 1 long atm put instead of a stoploss (yes i know this is the same as a long call, but hold on..), incase it goes against you and the put gets itm, roll down the put, you keep doing this up to a pre-defined limit, to prevent just burning optionpremium while the stock goes into a deathspiral, sell on a rebounce, or bail after a predefined time.
This would allow for a sloppy entry i suppose, am i missing anything, besides extra costs on premium, but also additional safety.
