Stock Investment

Stock investment provides profit and income through simple investment strategies of buy and sell stock, trading options, put selling, covered calls, bull and bear spreads.

Chipotle Mexican Grill Stock – Worried On Long Put Position – Investor Questions

Categories: Investor Questions, Profit And Income Strategies, Rescue and Repair Strategies, Stock Investment

Chipotle Mexican Grill Stock – Worried On Long Put Position – Investor Questions

An investor posted his dilemma on the member’s forum with regards to his position in Chipotle Mexican Grill stock. Chipotle Mexican Grill Stock trades on New York under the symbol CMG. CMG Stock is not a stock I trade nor follow. While investors definitely loved this stock at one time, it was in my opinion way overvalued. As well I have been to a few of their locations and to me, it was just another restaurant with okay food. I have never found the dining…

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4 Steps To Understanding and Profiting From Technical Analysis – Investor Questions

Categories: Investor Questions, Profit And Income Strategies, Stock Investment

4 Steps To Understanding and Profiting From Technical Analysis – Investor Questions

When I invest I use technical tools to assist in the timing of a trade. Technical tools can be designed for all types of trading endeavors. An investor posted this question on the members forum regarding learning technical analysis. Investor Questions: I am a novice in Technical analysis. I want to subscribe to a Charting website which can give me support and Trend lines without my attempting do it myself.  If any one has come across any site which has ready information, please advise me.  …

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Getting Ready To Profit In 2016 – Investor Questions

Categories: Investor Questions, Profit And Income Strategies, Stock Investment

Getting Ready To Profit In 2016 – Investor Questions

An investor recently emailed wondering what technical tools he could focus on that would provide him with profits in Put Selling in 2016. When investing through naked puts or credit put spreads there are no silver bullets that can be used all the time. This is why understanding stock selection is so important. I remember over the past couple of years many of the stocks mentioned on my public Yahoo Forum that ended up crushing many investors. Stocks like VALE SA which trades on New…

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Understanding Taking Profits Early In Apple Stock – An Investor Shows How – Dec 22 2015

Categories: Profit And Income Strategies, Stock Investment

Understanding Taking Profits Early In Apple Stock – An Investor Shows How – Dec 22 2015

Just two days ago I was writing about how to roll-down Apple Stock credit put spreads profitably. Today an investor tweeted me his results on his trade in Apple Stock. Back on Dec 18, Patrick sold the Dec 31 expiry $100 put strike for 71 cents. Today he closed that position for 19 cents. This is a gain of 52 cents or 0.52% in 3 trading days. This is an annual return of 63%. Patrick tweeted his chart today showing his entry point and exit.…

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Caught With ITM Short Calls On GMCR Buy Out – Investor Questions

Categories: Profit And Income Strategies, Stock Investment

Caught With ITM Short Calls On GMCR Buy Out – Investor Questions

One of the option strategies that I recommend against is shorting calls in a bull market. Bull markets can be tricky. What looks like a stock in trouble can often lead an investor to short calls in the belief the stock is heading lower. Instead, the stock turns around and roars higher leaving the investor with deep in the money (ITM) short calls and staring at losses unless the trade can somehow be rescued or repaired. Often when a stock moves higher, an investor who…

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Handling and Profiting From Lockups – Investor Questions On FITBIT Stock (FIT)

Categories: Profit And Income Strategies, Stock Investment

Handling and Profiting From Lockups – Investor Questions On FITBIT Stock (FIT)

Often with a new IPO a certain number of shares are held for company principals, private investors or other related individuals who played a key role in the IPO being put together, accepted and released. These shares are held in what is called a “lockup” state meaning they cannot be traded no matter what the stock is trading for. There is always a set date when the lockup of the shares will end but often it is at least 90 days, and these shares can…

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Handling Deep In The Money Naked Calls – Investor Questions On Baidu Stock (BIDU)

Categories: Profit And Income Strategies, Rescue and Repair Strategies, Stock Investment

Handling Deep In The Money Naked Calls – Investor Questions On Baidu Stock (BIDU)

Sometimes trades that we enter get away from us. They either move too quickly or we react too slowly. Sometimes when a trade is starting to turn against us we wait, hoping the trade will turn back our way and we will still get out with our profit intact. Most of the time that doesn’t happen. An investor emailed wondering about his trade in Baidu stock which trades on the NASDAQ under the symbol BIDU. When he sold naked calls he did not imagine the…

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5 Keys To Reading The Exit Signals For The Bollinger Bands Strategy To Lock In Profits

Categories: Intel Stock (INTC), Profit And Income Strategies, Stock Investment

5 Keys To Reading The Exit Signals For The Bollinger Bands Strategy To Lock In Profits

My last trade using the Bollinger Bands Strategy Trade ended today with a profit of 7.8% in 3 days. This type of return though is not by chance but through understanding how to read the signals for both entering the trade and exiting it. Capital Exposure Is Greatest Risk To Loss Profit aside, the advantage of these types of trades is that capital is exposed to the volatility of the stock market itself, for very short periods of time. This is what makes investing safer…

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Learning To Become A Better Investor – Walmart Stock Rescue Strategy – Investor Questions

Categories: Profit And Income Strategies, Rescue and Repair Strategies, Stock Investment, Walmart Stock (WMT)

Learning To Become A Better Investor – Walmart Stock Rescue Strategy – Investor Questions

There are two key aspects to investing successfully. Both are equally important. The first is having clear goals and not deviating from those goals. The second is knowing and understanding the type of investor you are. Goals To successfully sell put options for income an investor has to decide on their goals. These goals have to be built around levels of risk and how comfortable an investor is depending on those risk levels. Once goals are made, they should not deviate from them. Setting up…

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Apple Stock Thrashed by Bear but Is An End In Sight?

Categories: Apple Stock (AAPL), Stock Investment

Apple Stock Thrashed by Bear but Is An End In Sight?

At Friday’s (Mar 1 2013) close anyone who bought Apple Stock in the past 12 months and has held on, is now holding losses. Apple Stock isn’t really in a free-fall but it certainly feels like it to millions of investors. Those who have followed my biweekly Put Selling know that I was holding the $430 and $425 puts which expire today. I was surprised when Apple Stock plunged all the way to $430.00 as materially there is no change in Apple Corp yet. Some…

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Facebook Stock Price Set To Bounce

Categories: Facebook Stock (FB), Stock Investment

Facebook Stock Price Set To Bounce

Facebook Stock may be getting hammered, but the stock technical analysis shows that the pounding is pushing Facebook Stock into extremely oversold territory which normally means a big bounce in the stock. While investors certainly did not like the earnings news from Facebook last week, they have taken out their anger on the stock. Selling has pushed Facebook stock to extremely oversold levels which are not seen very often in a stock. All the stock technical analysis tools are deeply oversold. Facebook Stock Oversold The…

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Facebook Stock and Overpriced Put Protection

Categories: Facebook Stock (FB), Selling Put Options, Stock Investment

Facebook Stock and Overpriced Put Protection

On Thursday July 26 and Friday July 27 I wrote a number of Facebook Stock articles. As regular readers know I have been Put Selling the Weekly put options against Facebook Stock for some time using the Shark Strategy. I received a number of emails wondering what I meant when I said on Friday’s comment that I would not buy put protection on Friday. In my Facebook Stock article I was explaining that Facebook Stock was already so low Friday morning that put protection would…

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Facebook Stock – What’s It Worth?

Categories: Amazon Stock (AMZN), Facebook Stock (FB), Stock Investment

Facebook Stock – What’s It Worth?

More emails are coming in on Facebook Stock and questions as well as comments. I suppose the biggest question being asked is the valuation of Facebook Stock itself. As I have indicated in my previous posts on Facebook Stock, I do not believe it is Stock Investment grade. In other words there remains too many unknowns at this point. I see no problem with Trading Option strategies against the stock itself, but valuations are all over the map, so to speak. Marketwatch Facebook Stock Article…

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Stock Investment In Facebook Stock Through Weekly Put Selling Making Cents

Categories: Facebook Stock (FB), Selling Put Options, Stock Investment

Stock Investment In Facebook Stock Through Weekly Put Selling Making Cents

Yesterday’s two articles on Facebook Stock looked at Weekly Put Selling using the Shark Strategy. After earnings came out I thought Facebook Stock could by my valuation method, end up in the mid-teens. I also looked at rescue strategies for my Facebook Stock Aug 3 $22 and $21 strikes that may well up in the money if selling intensifies, however there are a number of items I did not see in the financial report. This morning I received an e-mail from a reader who is…

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Stock Investment in Facebook Stock Through Put Selling Pays Big Profits

Categories: Facebook Stock (FB), Selling Put Options, Stock Investment

Stock Investment in Facebook Stock Through Put Selling Pays Big Profits

Since it came to market Facebook Stock has provided a lot of investors little but headaches and losses. But for those Put Selling against Facebook Stock the returns have been significant. Put Selling has been simpler and certainly a much easier Stock Investment method than buying shares and trying to time when to sell them. This morning’s plunge in Facebook Stock is another great example of the power of Put Selling versus a Stock Investment in Facebook Stock shares. The news of ZNGA Inc .…

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