With markets at all time highs many of us find ourselves sitting nervously on profits wondering if it's time to book them. Unfortunately as they say 'they don't ring bells at the tops or bottoms.' So what to do?

Luckily, the options markets offer dozens of strategies to help traders book profits while staying long the tickers. Stock replacement is one of those methods. A trader can book the profit by selling the position. Then the trader can re-engage via a debit call spread for a fraction of the cost of staying long. If the stock continues higher, the trader continues to profit. Being long via debit call spread means that the trader's maximum risk is the small amount invested in the spread bought.

Variations to this strategy includes buying protection (puts) for free... Yes, for free.

These are the kinds of strategies we learn in Create Income with Options Spreads. Join us soon.

Nic.

Teaching traders make money from a relatively safe distance: Create Income with Options Spreads, a large community of Options Traders looking to create extra income by trading credit spreads. For just about the cost of a cup of coffee per day, you can get all the benefits of the CIWOS subscription, including analysis, alerts, trade recommendations, chats & video updates.