FullyInformed.com - Updates and Comments

I believe people spend more time investigating what car to buy than taking care of their personal finances. 35 years ago I decided to learn how to manage, invest and grow my savings. I decided to become fully informed. I built this site to share my strategies and investments. To understand my strategies Continue Reading >>
Support and Resistance For Put Selling and Covered Calls Part 2

In Part 1 of the study of Support and Resistance I looked at the value of using support and resistance and why it is easier to apply it to stocks within specific industry groups. I gave a short look at using support and resistance to sell puts and write covered calls against Johnson and Johnson stock. In Part 2 I will look at how I combine the Volume technical indicator to my charting tools to confirm support and resistance levels in the underlying security. In Part 2 I will be using PepsiCo Stock / Read More

Market Timing / Market Direction For Feb 27 Week

Last week there wasn’t a lot to write about as far as market timing and market direction were concerned. I closed my spy put trade on Thursday in what was a slow week of the S&P 500 grinding higher most days with the dip on Thursday which was quickly bought. Market timing indicators remain positive but show the signs of stress in the market as overbought conditions remain. While market timing indicators cannot always pinpoint when a rally will end, there are enough warnings signs now that any day we could see selling / Read More

Support and Resistance For Put Selling and Covered Calls Part 1

One of the key elements in my put selling and covered call strategies is being able to pick support and resistance valuations in a stock. I show support and resistance levels often in describing my trades before they get underway. For example here is my write up for PepsiCo Stock where I pick key strikes built around understanding support and resistance levels in PepsiCo Stock. I believe no matter what option strategies for income is being used, it is important for any investor, whether doing put selling, covered calls, stock buying and selling, / Read More

Kraft Stock Earnings Creates Put Selling Profit

Put selling on Kraft Stock is viewed by many option sellers as not worth their time or capital. I disagree. Many option sellers see Kraft stock as not having enough option premiums worthy of put selling or covered calls, but it all comes down to watching the stock and picking the times and strikes to sell. To do this doesn’t actually need much work. In fact most stocks do not need a lot of work if done properly. This is why I have a standing list of stocks that I watch and check / Read More

Europe Crisis - Greek Bond Haircut Is A Default In Every Sense

The Europe Crisis I believe continues unabated. The Greek restructuring of debt and subsequent second bailout I felt was probably 90% assured because no European Bureaucrat actually has any answer to the Europe Crisis.  This Greek Bond Haircut it is a default in every sense of the word. The dictionary defines default as: Noun: Failure to fulfill an obligation, esp. to repay a loan. Verb: Fail to fulfill an obligation such as to repay a loan. Europe Crisis Is A Question Of What Might Hurt Less The Bureaucrats who run Europe seemed to feel / Read More

AGQ ProShares Covered Calls Questions

A lot of investors look at covered calls as a very simple strategy. Buy shares and sell covered calls out of the money and if the stock reaches that price by the time of options expiry then be exercised, make some profit and look around for another opportunity to repeat the covered calls strategy perhaps even on the same stock. If the covered calls expire by the time of options expiry then sell another round of covered calls and wait again. Sounds good and certainly no problem with that covered calls strategy. What’s / Read More

AGQ ProShares Ultra Silver Investing Strategies Part 3

As many readers are aware I have been busy working on Part 3 of the AGQ ProShares Ultra Silver article to conclude it. It took a lot longer than I had thought to write the final part. After 2 weeks, I have concluded the article which is 52 pages long and details out 4 different strategies that I have used and continue to use on various ETFs and on some stocks. While these strategies are designed for high volatility Ultra ETFs like AGQ, they work well for particularly stocks. For example last week / Read More

Market Timing / Market Direction Good News Bad News

It comes down to Good News and Bad News. One day the news looks bad and the next day the news looks good. Yesterday the news looked bad and today the economic news looks good. All the stocks markets moved higher today and the S&P 500 today closed near the high for the day ar 1358.04. Buying commenced in the morning and last all day. Does this mean that the market direction is finally confirmed as still moving higher? Market Timing Indicators For Feb 16 2011 Below are the market timing indicators for / Read More

Market Timing / Market Direction Spy Put Trade Back On

Just yesterday I closed my SPY PUT trade selling my last 10 spy put contracts for the same price I bought them at. I explained in an article what I saw within my market timing indicators that told me not to worry about hedging my portfolio. Sometimes though you have to realize you might be wrong. As today’s trading wore on my market timing indicators kept flashing that the market direction was indeed going to change and that my original outlook was probably right. The market direction is stalling. It looks like the / Read More

PepsiCo Stock Put Selling and Covered Call Strikes

PepsiCo Stock is well worth watching. It is held by literally hundreds of institutions. I have engaged in put selling against PepsiCo stock for years. My website shows my PepsiCo put selling trades since Feb 11 2009. Here are the PepsiCo Stock Trades for 2009; PepsiCo Stock Trades for 2010; PepsiCo Stock Trades for 2011. If someone had bought PepsiCo Stock on Feb 11 2009 they would have been able to buy it for $50.25. By November 2009 PepsiCo Stock was at $62.00. Since then the stock has wandered but stayed in a / Read More

Microsoft Stock Put Selling With The Bank's Money - Margin

Microsoft stock has long been a favorite of mine. I have engaged in put selling against Microsoft stock longer than 10 years and each year ended up with double-digit returns. Rarely have I held stock. In the bear market of 2008 to 2009, when Microsoft stock fell all the way to just below $15.00 I bought shares and sold a lot of puts. It’s a wonderful tech company that is actually quite diversified and has a wide moat of cash protecting the Microsoft Castle. I have written a number of articles about the / Read More

SPY PUT Trade Closed - Here's Why

As regular readers know I use the SPY PUT to hedge my overall portfolio. It is important to understand that it is a hedge and not an income play.Put selling against my favorite stocks is my income strategy. It is through put selling that I aim for my 12% annual return in my stock portfolios. The SPY PUT Hedge is not meant for income gains but for protection against a declining market. This ties directly into my strategy. Making the decision to close this latest spy put trade also shows the importance of / Read More

Market Timing / Market Direction Sleep Well The Bull Is Simply Resting

Market timing indicators are flashing overbought, but no serious concerns about any major decline. Despite European concerns the bearishness in my market technicals show that any serious downtrend is well contained. All the market timing indicators are still unconcerned about the overbought condition and in general are advising that when this weakness in the stock markets is over stocks will be set to rally higher keeping the market direction in a bullish envelope. Basically the Bull Is Just Resting. Market timing indicators from the rate of change through to the fast stochastic are / Read More

Scotia Stock Added To Retirement Account

Scotia Stock was added to my retirement account on Feb 2 2012, the day after they announced a new offering of 30 million common shares as Scotia Stock raised $1.5 billion dollars. This means a dilution of Scotia stock for common shareholders as the float of common shares in Scotia stock is now at 1.1 billion shares. This brings the book value of Scotia Stock to $26.06 and with annual earnings of $4.62, the stock is trading at 11.3 times price to earnings. Scotia Stock is believed by many analysts to be undervalued, / Read More

SPY PUT Hedging Overbought Condition

Often the reasons for using the SPY PUT hedge are pretty simple. Whenever I see a market top or a market direction down confirmation I know it is time to step away from my usual stock put selling selection criteria for a moment and pick up some spy put contracts. Yesterday I purchased 20 SPY PUT April 21 2012 $135 contracts for $4.35. My market timing indicators have for a few days now been sending warnings that the market direction is about to change. On Feb 9 though, the market timing indicator I / Read More

Disclaimer: There are risks involved in all investment strategies and investors can and do lose money. Trade at your own risk.

Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author's ideas and opinions only and the author assumes no liability for topics, ideas, errors, omissions, ads and their content and external links. Fullyinformed.com is a private website. . By using this site, you agree to be bound by its terms of use which you can read here. The Privacy Policy Is Here If you do not agree to the terms of use, do not use this site. Any corporate insignia used are registered trademarks of their respective company or corporation and are used for identification purposes only. All material copyrighted by FullyInformed.com © 2006 -2013
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