Question From A Reader On How To Play Options In A Bear Market Question From BP: Would you be looking at stocks you DON’T want to own in the Long Term for buying puts or selling calls? Things like NFLX (Netflix) or LVS (Las Vegas Sands Corp (etc.) and stay away from the MSFT (Microsoft) and XOM (Exxon Mobil) type stocks of the world. Or do you just trade the ETF’s on the Indexes? My Answer Hi BP and thanks for your question. What you are actually asking is How To Play Options / Read More
Bear Market Defined A bear market should never be confused with a correction. Corrections can be severe but bear markets are far worse. A bear market is a period in time when the price of securities fall. There is usually widespread pessimism and negative sentiment grows as the bear market lingers. Bear markets normally see enormous price drops and as prices fall, investors become even more pessimistic and normally end up selling stocks at even lower prices. Secular Bear Market A secular bear market is a long period of many years where markets / Read More
CAT stock (Caterpillar) was a favorite stock of a friend of mine for several years. In January 2008 my friend invested in Cat stock ... ∞ 
Put selling is a strategy of small gains. When a put option is sold the profit is immediately realized. For example with Microsoft Stock ... ∞ 
Put selling on Kraft Stock is viewed by many option sellers as not worth their time or capital. I disagree. Many option sellers see ... ∞ 
As explained in Part 1 of this article on Put Selling with Deep In The Money Puts, put selling has many different strategies that ... ∞ 
PUT SELLING is not always a winning strategy. The belief among investors is that more options expire worthless than are assigned. While statistically this ... ∞ 
Part 1 of this article on Put Selling rolling strategy ended at December 2008. By that point I had already done one put roll ... ∞ 
