Rescue and Repair Strategies

Become A Better Investor: Don’t Be An Absent Landlord – Home On The Range and Stocks For $Zero

Categories: Become A Better Investor, Home On The Range Strategy, Rescue and Repair Strategies

Become A Better Investor: Don’t Be An Absent Landlord – Home On The Range and Stocks For $Zero

  Yesterday I wrote that pullbacks and corrections are common in bull markets. It is the market’s way of building support bases and consolidating increases in valuations. Pullbacks and corrections are an important element of investing. The problem is that for almost 5 months the market has not experienced a move lower of even 1% in a day. This makes it easy for investors to jump into stocks and figure that everything is just going to keep moving higher. That is rarely the case. When…

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Investor Questions: Knowing When To Roll-Down or Get Out Of A Short Put Trade – Intel Stock

Categories: Investor Questions, Rescue and Repair Strategies

Investor Questions: Knowing When To Roll-Down or Get Out Of A Short Put Trade – Intel Stock

Corrections and pullbacks are common in Bull Markets. The pullback on Tuesday March 21 saw my inbox flooded with questions for advice and suggestions on fixing trades. A lot of the questions were similar. Investors held on to short put option positions as the market fell apart. Many by the close of the day were down quite a long way. This article is longer than it was originally intended but it touches on key aspects of deciding when to roll-down or get out of a…

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Investor Questions: Repairing 50% Loss In VXX Trade

Categories: Investor Questions, Rescue and Repair Strategies

Investor Questions: Repairing 50% Loss In VXX Trade

With the “Trump Rally” continuing to hold its gains a lot of investors who went short the rally are staring at some pretty big losses. An investor recently posted his dilemma with a VXX trade where he is holding 3600 shares at an average price of $33 and the VXX is presently (Mar 8 2017) trading for $17.00. Original Capital invested is $118,800.00 and the trade is down 50%. So should the investor take losses, get out and try to recover $57,600 in losses or…

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Investor Questions: Repairing Losing Ultra Short SDOW Trade To Profits In The Trump Rally – Mar 5 2017

Categories: Investor Questions, Rescue and Repair Strategies

Investor Questions: Repairing Losing Ultra Short SDOW Trade To Profits In The Trump Rally – Mar 5 2017

When an investor decides that a bullish run in stocks is either overdone or could result in a snap pullback often they will judge the time as right to buy a protective product such as the SDOW Ultra Short Dow 30 ETF. This product attempts to provide results that are three times (3X) the daily performance of the Dow Jones Index. That means in theory that if the Dow Jones Index were to fall 1%, this ETF would rise 3%. If the Dow Jones rose…

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Target Stock (TGT) Sinks On Earnings and Outlook for 2017 – Feb 28 2017

Categories: Rescue and Repair Strategies, Target Stock (TGT)

Target Stock (TGT) Sinks On Earnings and Outlook for 2017 – Feb 28 2017

It was just 6 weeks ago that Target had indicated that traffic and sales trends disappointed during the holiday season. Today investors got to see just how bad the earnings were. Analysts were expecting $20.70 billion in fourth quarter revenue. Instead the company returned $20.69 billion . Last year for the same quarter revenue was $21.6 billion. It was their outlook for 2017 that is the real stunner. They anticipate sales and revenue between $3.80 and $4.20 a share. For the first quarter they expect…

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Target Stock (TGT) Analysis and Trade Alert In The Down Turn – Dec 22 2016

Categories: Rescue and Repair Strategies, Target Stock (TGT)

Target Stock (TGT) Analysis and Trade Alert In The Down Turn – Dec 22 2016

With only 3 days left for Christmas shoppers, the retailers are being hammered today as investors are concerned about profits and revenue numbers. Bed Bath and Beyond stock (BBBY), which I do not trade is down 8% after having a nice run-up from its November low. With this kind of pressure, the stock could easily drop to $39. Overall I have never been impressed with the company and as such I have stayed cleared of investing in it. Walmart stock (WMT) which I do trade…

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Repairing Deep In The Money Naked Puts In Facebook Stock (FB) – Investor Questions

Categories: Facebook Stock (FB), Investor Questions, Rescue and Repair Strategies

Repairing Deep In The Money Naked Puts In Facebook Stock (FB) – Investor Questions

On the Members forum, Aby posted a problem with her Facebook Stock trade. On Friday Nov 18 Aby has naked puts at the $129 put strike set to be assigned. Repairing Deep In The Money Naked Puts In The Facebook Stock When selling puts for income it is important to always find support levels and set up trades at or below those levels especially in volatile stocks like Facebook. The $129 put strike had good put premiums but it was far above any support and…

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Handling Today’s Bristol-Myers Squibb Stock (BMY) Stock Collapse – Trade Alert As Repair Continues – Oct 10 2016

Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies

Handling Today’s Bristol-Myers Squibb Stock (BMY) Stock Collapse – Trade Alert As Repair Continues – Oct 10 2016

It was just back on September 27 I was writing about the repairs I had entered on my trades in Bristol-Myers Squibb Stock and today the stock is collapsing as Merck has announced positive trial results for a competing lunch-cancer treatment drug. This has investors bailing on Bristol-Myers Squibb Stock once again. Remembering The Key Aspects Of A Collapse When a stock that I am trading collapses and leaves me with potential losses I know that there are two key aspects of recovery to focus…

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Bristol-Myers Squibb Stock (BMY) – Trade Alert As Repair Continues – Sep 27 2016

Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies

Bristol-Myers Squibb Stock (BMY) – Trade Alert As Repair Continues – Sep 27 2016

Another trade this morning in BMY Stock continues to work my repair of the current trade in Bristol-Myers Squibb Stock. Remembering The Key Aspects Of A Collapse When a stock that I am trading collapses and leaves me with potential losses I know that there are two key aspects of recovery to focus on. 1) Keep the capital invested producing income 2) Reduce the risk of further loss to the invested capital My trades done today continue to meet both of the key aspects of…

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Bristol-Myers Squibb Stock (BMY) – Using Leap Options To Rescue Deep In The Money Naked Puts

Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies

Bristol-Myers Squibb Stock (BMY) – Using Leap Options To Rescue Deep In The Money Naked Puts

Stocks are among the riskiest of assets. They can be incredibly rewarding and can also lead to stunning losses. This is why the selection of stocks to invest in is the number one key aspect to successful investing. However every stock will inevitably run into trouble and see declines at various times in its history. There are hundreds of factors that can cause a stock to fall including changed in management, change in packaging, change in consumer or corporate demand, currency swings, dividend changes and…

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Bristol-Myers Squibb Stock (BMY) – Assigned On Deep In The Money Puts – Investor Questions

Categories: Bristol-Myers Squibb Stock (BMY), Investor Questions, Rescue and Repair Strategies

Bristol-Myers Squibb Stock (BMY) – Assigned On Deep In The Money Puts – Investor Questions

Recently I received an email from an investor who was assigned deep in the money naked puts in Bristol-Myers Squibb Stock. I am also holding deep in the money naked put positions on BMY Stock that can be assigned at any time. There are many different strategies that can be used to repair this type of loss. This article shows how by focusing on recovering the loss quickly an investor can set realistic goals and implement strategies that can work to both protect repair positions…

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Facebook Stock- Rescue In The Money Credit Call Spreads – Investor Questions

Categories: Facebook Stock (FB), Investor Questions, Rescue and Repair Strategies, Selling Options For Income

Facebook Stock- Rescue In The Money Credit Call Spreads – Investor Questions

Many investors love to set up credit call spreads in bull markets. In my opinion they are better suited to bear markets or for individual stocks that show signs of definite stress or weakness. An investor emailed after credit call spreads he placed in Facebook Stock (FB) ended up in the money as Facebook Stock continues to rise. Since placing his trade, the Facebook stock has shot higher and it is now beyond his short call strike leaving him with a probable loss. Let’s review…

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Rescue In The Money Credit Call Spreads – Investor Questions

Categories: Investor Questions, Rescue and Repair Strategies, Selling Options For Income

Rescue In The Money Credit Call Spreads – Investor Questions

n bull markets, shorting call options can often work against an investor. Setting up credit call spreads can often assist in protecting against larger losses rather than using naked call trades. An investor on the Yahoo forum recently posted his dilemma with Microsoft Stock and his credit call spread position. Since placing his trade, the stock has shot higher and it is now beyond his short call strike. Let’s review his question and then look at some suggestions: Investor Questions: On June 29 I sold…

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5 Tools For Timing Rolling Down Naked Puts in Chipotle Mexican Grill Stock (CMG) – Investor Questions

Categories: Investor Questions, Rescue and Repair Strategies, Selling Options For Income

5 Tools For Timing Rolling Down Naked Puts in Chipotle Mexican Grill Stock (CMG) – Investor Questions

Every investor who sells put options for income will at some point wonder about the timing of rolling down naked puts. Instead of guessing when the best point is, often the better choice is to use the 5 technical tools I have outlined in the article below, to advise when to roll-down or to close a naked put position to avoid being assigned shares, or worse, lose capital in a downturn that roars past the short put strike that was sold for income. An investor…

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Rescue Strategy Needed – Gilead Stock Investor Worries On Underwater Naked Put Position – Investor Questions

Categories: Gilead Sciences Stock (GILD), Rescue and Repair Strategies

Rescue Strategy Needed – Gilead Stock Investor Worries On Underwater Naked Put Position – Investor Questions

Recently I received an email from an investor seeking help with his naked put positions on Gilead Stock (GILD). This is an interesting email as the investor is aware that the dividend that is released tomorrow, often means investors who are deep in the money, have a good chance of being assigned shares, after the dividend is received by the investor who owns the short put contracts that were sold. The investor, David, is in such a position. Let’s review his question and look at…

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