Yesterday I posted 3 trade ideas to start off the week. For Tuesday, here are 3 more trades I hope to enter. Each trade is designed to protect my capital while working to boostthe return for this week.
While the action today on the markets was anything but inspiring, it was still positive and investors are remaining reluctant to move to the sidelines. If the Fed does hold off on raising interest rates in June, it should help to boost the market or at least keep it from selling off through the spring months.
Strong Put Premiums
Put premiums are strong on hundreds of stocks as the market makers are well aware that an interest rate announcement in June could send stocks tumbling. This is why I refuse to trade small to medium size stocks. While all stocks will pullback if there is any kind of an interest rate rise in June, big cap stocks will recover at some point, at least to the put strike levels I am trading while many small caps may not.
Not Chasing Option Premiums
With generally all put premiums at good levels ahead of June, it does not make sense in my opinion to chase what may be perceived as better option premiums in the small to medium stocks or speculative stocks. The premiums are very good in the big caps at present.
Remember you always trade at your own risk. Any questions on any trade please post them to the article or to the private Member’s only forum.
3 Trade Ideas To Increase Profits For Tuesday May 5 2015
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. 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 own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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