Last year Aflac stock returned 33% against the capital invested. This year starting in January I sold puts that ended up being caught in the downturn in January. However through a simple but highly effective roll-out strategy, I was able to continue to keep the trade highly profitable, reduce the amount of capital that was at risk, work toward lowering my cost-basis in the stock while at the same time, keep profits pouring in.
This roll-out strategy is simple to implement but provides high flexibility against assignment with its focus on capital preservation and capital reduction. The January 7 trade in the 2014 trade table explains the strategy and with the March 22 options expiry arriving this week, you are able to follow the trade from January 7 through to this Friday’s option expiry to see the results of how easy but effective this rescue strategy is. It is through understanding these types of rescue strategies that investors can build confidence and increase comfort levels when trading in assets as risky as stocks.
Aflac Stock Rescue Trade
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