Honeywell (HON): Shorting Opportunity!

Honeywell is currently trading within the range between $90 and $98. HON is facing the Rectangle resistance with a Hanging Man.

HON Nov6-2014

A few ways to short sell US stocks:

  • Long Put Option – Almost unlimited profit (when stock price reaches zero) with maximum loss defined but time sensitive.
  • Short using CFD (Contract for Difference) – Almost unlimited profit (when stock price reaches zero) but unlimited losses also (when the stock price goes up to infinity theoretically)
  • Short Vertical Call Spread – Limited Profit Limited Loss.

Note: When the stock market is at the high (especially now at historical high), it is essential for everyone to learn how to short sell safely. Short selling is a very important skill for a trader and investor (to hedge the portfolio which already making money).

Original Post by Marubozu My Stocks Investing Journey

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