The Bollinger Bands Strategy I explained in this article is a simple, yet effective strategy to boost returns from Put Selling on many stocks. For investors who are following my Coca Cola Stock trades which you can review here, you will have noticed that I bought shares of Coca Cola Stock on November 15. That purchase was a direct result of the Bollinger Bands Strategy being applied to my ongoing trade.
On Friday November 23 2012, Coca Cola Stock rose to the Upper Bollinger Band and I sold my shares for a gain of 3.3% for a week’s work. The amount earned may not seem large and indeed 3.3% is not a lot, but it is these types of trades that boosts the income earned from Put Selling and continues to generate double-digit annual returns in stocks like Coca Cola Stock.
The Bollinger Bands Strategy allows me to stay focused on my large cap dividend paying stocks rather than move to Junior or Speculative Stocks when volatility declines and put premiums decline. When combined together, the Bollinger Bands Strategy and Put Selling Strategy can be an earnings power-house that can quickly grow a portfolio.
This FullyInformed Members Article explains the recent Bollinger Bands Strategy Trade done on Coca Cola Stock. Members can access this article through this link. Non-members can join here.