Having a watch list of stocks is important when Put Selling. Each day I take a moment and check my watch list to see which stocks are holding their ground, moving higher or are moving lower. By checking my watch list for a few moments daily I know how to allocate my capital. While a lot of investors get caught in stocks that are heading lower, other investors who use a watch list are busy Put Selling against stocks that are moving higher. Even in the present market there are big cap dividend paying stocks that are performing well. One of those stocks is Kimberly-Clark Stock. It’s trading symbol is KMB. Over the past two years this stock has grown the capital invested 50% as I have used a variety of Put Selling strategies, with the most common being the “Walk That Profit Home To Momma” strategy.

Walk That Profit Home to Momma Put Selling Strategy

This Put Selling strategy is straight forward. I find a stock I think is in an uptrend and I sell in the money naked puts. I then roll those puts sideways and as the stock climbs higher I sell a second set of naked puts still higher. Eventually my first set of naked puts ends up out of the money and the capital is freed to sell a third set of naked puts which is higher again. Sometimes I have to roll sideways for a while waiting for the stock to climb to my put strikes but when I do, I am earning excellent returns and additional put premiums. This strategy is designed for uptrending stocks as it allows me to capture the put premiums as well as some of the capital gain in the stock itself.

Staying With Uptrending Stocks

The watch list is an excellent method of spotting trends in my stocks and knowing which ones are rising. By staying with the uptrending stocks in my watch list I can apply more capital and not worry that the stock is suddenly going to collapse. As I have sold two or more in the money naked put strikes I have some protection from a sudden decline since I am basically averaged into the stock even though I am in the money with my put strikes…………

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