Stock And Option Strategy - Teach The Bear New Tricks

This, the third article in my Teach The Bear New Tricks looks at a Stock And Option Strategy for rising stocks in bear markets. Bear markets are not all doom and gloom. They provide increased volatility which push option premiums high making put selling and covered call selling very profitable. Fund managers cannot simply pull all their capital out of stocks and wait out a bear market. This never happens. They therefore look for value in diversified large cap dividend payers. Stocks like Johnson and Johnson, PepsiCo, McDonalds, Yum Brands and the like. / Read More

 
Deep In The Money Calls - Teach The Bear New Tricks

Deep in the money calls can be an exceptional strategy to consider in a bear market. Whipsaw days and high volatility can make it tough for any investor. Wouldn’t it be great to put aside all the wild swings, volatility and fear of the bear market and get back to what is really important, investing. That’s what deep in the money calls can provide. There is a difference between trading and investing. Traders are often in the market for short periods, sometimes even minutes as they try to make quick profits. Investors on / Read More

 
Collar Strategy - Teach The Bear New Tricks Using A Collar Option

Collar Strategy is a great way to buy into a stock during a bear market without worrying about the stop collapsing and taking your capital with it. But many investors hate using a Collar Strategy as they perceive it as being too expensive. Indeed to put a collar option in place on a stock will cost capital, but if the goal is to seek a capital gain and protect from capital losses then the Collar Strategy makes sense. As well when a collar option is purchased an investor can use selling out of / Read More

 
Royal Bank Stock - Learn From The Bear Part 1

Royal Bank Stock is one of the most widely held stocks in Canada. It is also a stock held by pension funds and institutional investors across much of the world, in particular North America, Europe and Asia. Royal Bank Stock is the largest of Canada’s big 6 banks. Royal Bank stock has a market cap of around $68 billion C$ and earnings of $18 billion C$.  But like the other stocks in my series on Learn From The Bear, Royal Bank Stock has also seen its share of bear markets. This is the / Read More

 
Royal Bank Stock - Learn From The Bear Part 2

In the second part of the Royal Bank Stock article, I pick up in 2008 as the severe bear market is getting underway. To understand this article you should consider reading Part 1 of Royal Bank Stock – Learn From The Bear. ROYAL BANK STOCK – LEARN FROM THE BEAR – continued… Royal Bank Stock – 2008 (first loss): Loss 16.9% 2008 would mark the worst year on record for Royal Bank Stock. The first warning sign shows in the story of Royal Bank Stock when it failed to recover to the recent / Read More

 
CAT Stock - Learn From The Bear

Cat Stock is another favorite stock of many investors around the world. It stands to reason because CAT Stock represents a huge international corporation with locations in every major world market. Caterpillar has a market cap of 48 billion and revenue of around 50 billion. This is a mammoth company with ties to the infrastructure growth of nations everywhere. This is also part of the reason I like to read the story that its historic charts tell me, because CAT Stock is directly tied to the health of the world’s economies. Before I / Read More

 
JNJ Stock - Learn From The Bear

JNJ Stock is one of those long-term favorites of thousands of investors around the world. There are lots of other stocks just like JNJ Stock and each one of them has a historic stock chart which investors should consider taking some time to read. Just like an exciting spy novel, engaging murder mystery or sweeping romance, stocks like JNJ Stock have historic charts with exceptional stories to tell anyone who wants to read it. Throughout the story being told, there are terrific bull market rallies and nail-biting bear markets. For my reading pleasure / Read More

 
CAT Stock - The Strategy Of Rolling Covered Calls Down

CAT stock (Caterpillar) was a favorite stock of a friend of mine for several years. In January 2008 my friend invested in Cat stock and sold covered calls. Her plan was to earn the dividend and she wondered if I could help create a strategy of earning more than the dividend and protecting her position in Cat Stock. My friend lives in Canada and as the capital was in her retirement account, Canadian laws do not allow for the selling of options without the underlying stock. Therefore in Canada a retirement account, which / Read More

 
Writing Puts All Day Long

Writing Puts was the order of the day. Today’s market action following yesterday’s late afternoon drop, just lent itself to writing puts. The VIX headed higher reaching 43.87 by the afternoon as selling intensified. Then a late day rally capped the loss, but overall there were lots of bargains in writing puts. Here are some of the puts I wrote today: WRITING PUTS – THE STOCKS: YUM STOCK : I have been trying for a few days to sell puts against YUM Stock at lower put strikes but the premiums just did not / Read More

 
CVX Stock - Rescuing In The Money Puts

Chevron Stock – Reader Question On His In The Money Puts Recently I received a question from a reader about Chevron stock (CVX stock) . I have edited his email and my answer to include it on my site as I felt it would be of interest to others when assessing their own situations when sold puts end up in the money. Often when investors sell out of the money puts and the puts fall in the money, it becomes difficult to decide what strategy to use next. Because of this many investors / Read More

 
Illinois Tool Works Stock - Getting A Better Dividend

Illinois Tool Works Stock Option Trade How can a company like Illinois Tool Works Stock (symbol ITW) aid those savers who are seeking better returns than money market rates or certificates of deposit (or in Canada – Guaranteed Investment Certificates) while having some comfort that their hard-earned capital won’t be lost in a stock market meltdown? Since the end of 2008, the Federal Reserve is penalizing savers. It has become the third year of basically minimal returns for keeping your capital safe. By now savers are realizing that there is little likelihood of / Read More

 
Out Of The Money Options - Bear Market Strategy

Selling Out Of The Money Options Part 1 – The Strategy Explained and The Rules In bear markets I enjoy selling out of the money options. With declines of 500 points in the Dow Jones Index, investors are fleeing to the safety of treasuries and bonds. However they provide little yield and they too are not without risk. Buying bonds when stocks tumble means paying more for the bond that it is actually worth and settling for yields that are often 2% or less. I cannot imagine tying up my capital for a / 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 -2012
All Material Copyrighted 2006 to 2012 FullyInformed.com<  >Sitemap Privacy Policy      Terms Of Use      Contact Me Not Real Time Trades      Join The Options Forum