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For instance, a short put long call combination may be entered at support, when the stock is short.  If the price swing would reverse and continue going up, then the option synthetic trade would be long instead of a short hedge. But if the move continued down after the short put trade, the stock short would cover the put sell from being a naked short. And like the chart discussion above, I especially want to talk about how our combination stock option trading strategies reduce the risk for stock trades and short option trades. Before starting the video, I also want to make some comments specific to price and trading indicators. Although we do use indicators for trading, these are used as additional setup and chart reading information and not as trading signals. Our trading method is first focused on significant chart prices and the price action and patterns that occur there – and when going into a new trading period, it is very important to bring the relevant prices from the left side.
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