IPOs can deliver triple digit gains

A Recent IPO Could Reward Traders With a 112% Profit This Month...READ MORE
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A Recent IPO Could Reward Traders With a 112% Profit This Month

Initial public offerings, or IPOs, are the process of offering shares of a private corporation to the public in a new stock issuance. At the completion of the IPO, public share holders will be able to own shares in popular companies like Uber or Lyft, two companies that recently completed IPOs.

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IPOs tend to have a glamorous appeal in the mind of some investors, but they might not always be profitable. Uber failed to trade at its initial offering price for weeks, leaving investors who thought they were getting a bargain nursing losses.

Some IPOs do perform well while others do not. That is really the problem, in a summary form, confronting all investors. But there are some strategies that can be used to limit risks in IPOs as we explain in our latest article, which includes an example of a recent IPO along with details on a potentially large profit with limited risk.

In the article, we use an options strategy that is focused on risk and the risks of the trade are strictly limited at the time the position is opened. We show what that limit is, along with the potential returns of the trade, based on actual recent market data so that you can understand the strategy.

To learn more, you can continue reading the details in our latest free educational article that is available right here.

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