Would love to hear from others who sell stock short, or take short positions using option spreads.
If you sell stock short, do you hedge with a long call? If so, how do you choose the month and the strike?
If the stock goes sideways for a while, with no significant gain or loss, how do you decide when to give up and liquidate the position?
How do you decide what size position to take?
Do you sell vertical option spreads, without actually selling the stock? How do you pick your strike prices and expiration months?
How do manage risk? If the stock starts going UP, how do you decide when to take the loss and get out?
If the stock goes down, same question: How do you decide when to take your profit and get out?
If you sell stock short, do you hedge with a long call? If so, how do you choose the month and the strike?
If the stock goes sideways for a while, with no significant gain or loss, how do you decide when to give up and liquidate the position?
How do you decide what size position to take?
Do you sell vertical option spreads, without actually selling the stock? How do you pick your strike prices and expiration months?
How do manage risk? If the stock starts going UP, how do you decide when to take the loss and get out?
If the stock goes down, same question: How do you decide when to take your profit and get out?
