Clorox Stock (CLX) – What To Consider When A Stock Breaks Support

This is a FullyInformed Members Strategy discussion on what to consider when a stock breaks support. Often when investors are Put Selling below support levels and that level breaks they become emotionally charged and many also become nervous. They do not want any stock assigned and are concerned about retaining the profits made to date. This morning (Jan 8 2014) Clorox Stock plunged right through support at $90. The trading symbol is CLX and Clorox trades on New York.

I am holding naked puts in two groups which I sold against Clorox Stock which could shortly be at risk of being in the money and my capital at risk of taking assignment. This strategy discussion presents what I look at and how I make decisions as to everything from adding to my position to rolling down to doing nothing. Having a plan in place for when a stock does the unexpected assists greatly in keeping an investor focused on the profits already made and away from taking what are often unnecessary losses.

Investing for many investors is extremely emotional. Here is what I do to control emotion and stay consistent with both protecting capital at risk and profits already earned.

Clorox Stock Strategy Article

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