Month: September 2011

Microsoft stock has been a stellar performer for almost 10 years. I have reaped double digit returns every years through carefully selecting put strikes to sell and earning capital which will one day assist in paying for the stock. The put strike selection though is not randomly done, but is through careful analysis of the history of the stock. Through such analysis I can work my position to the point where, if assigned shares, I will be in the stock at bear market prices which affords me the luxury of not just owning a great company at a great price, but also of being able to earn additional capital through selling covered calls. In a market as volatile as the past few years have been, stock analysis I believe is essential to preserving my capital as well as guaranteeing low valuation placement in stocks.