Put Selling remains my most favorite strategy for many reasons. One of them though is because so many stocks trade within ranges which are so easy to do Put Selling against. For example, last year I did only a couple of Put Selling trades against Procter and Gamble Stock (PG Stock), but I did paper trade it the entire year to see what sort of results I could achieve. Paper Trading is not the same as using actual capital but much of my capital was tied up in other stocks and I enjoy paper trading certain stocks as well. I realize that a lot of investors think paper trading is a waste of time but I think paper trading has enormous benefits particularly when I am busy Put Selling other stocks and I want to test out a new strategy or Put Selling against a new stock and see what kind of results to expect while keeping my capital safe and busy working in other stocks.
Here are a few articles on paper trading that you might find interesting:
Paper Trading Articles
Paper Trading Members Only Articles
Put Selling PG Stock
As mentioned I did paper trading last year with Put Selling against Procter and Gamble Stock (PG Stock) and the return was 12%. But then I added in some Bollinger Bands Strategy Trade and the return jumped to 22%. Not bad at all for a big heavy weight stock that pays a decent dividend and has a very large institutional following. In fact Procter and Gamble Stock (PG Stock) may be a prime candidate for the core portfolio I mentioned in my article on Building Wealth.
This big cap dividend payer is having trouble holding the $70.00 highs to create a new trading range. This tells me the stock is a great Put Selling candidate and with its history PG Stock would fit the Building Wealth Covered Calls profile beautifully. This morning I commenced my first Put Selling trade in PG Stock!
Put Selling Procter and Gamble Stock (PG Stock) Summary
The past 5 year Procter and Gamble Stock (PG Stock) chart below shows how simple Put Selling has been in this stock. The top and bottom range for Put Selling are clearly defined. In fact prior to the market collapse in 2008 to 2009 these same put levels would have worked fine for Put Selling. Not only that but the quarterly dividend in 2008 was .40 cents and today it is .562 yet the stock has not done much making it ideal for put selling.
The market collapse in 2008 to 2009 shows how undervalued Procter and Gamble Stock (PG Stock) was and gives a clear signal that anytime the stock is below $50.00 it is undervalued.
I just know this will be the start of a long and lasting Put Selling relationship. The trading range Procter and Gamble Stock (PG Stock) has been in for the past 5 years makes it an ideal Put Selling candidate for those seeking double-digit returns with limited risk of capital loss. If assigned shares I will build a long-term position and be using the Wealth Building Covered Calls Strategy.
Procter and Gamble Stock (PG Stock) Internal Links
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Procter and Gamble Stock Financial Reports
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