One stock that has helped push my Canadian Portfolio toward a 15% return this year is Canadian National Railway Stock. The stock has provided some excellent profits but most of the credit has to go to the Weekly Wanderer Strategy. Although this strategy is designed for just a couple of weeks of trading data, it can still be used to assist in selling options, both calls and puts, out further than a couple of weeks.
With CNR Stock I have used the Weekly Wanderer Strategy continually to pinpoint option strikes to sell for income, that are out one to two months in time. It is understanding the importance of protecting capital from loss that makes using the Weekly Wanderer Strategy so significant. Its signals are the key to successfully trading CNR Stock without loss of capital.
CNR Stock Chart
You can see in the chart from February that the all-time high on Feb 19 of $88.89 has not been recovered. Indeed the attempt to break through in the middle of March was rebuffed and the stock since then has followed the classic patterns of lower highs and lower lows, which is indicative of a stock in steady decline.
With the stock now down 10.9% since that all-time high, you would think it would begin to turn around. However the Slow Stochastic has shown the stock as deeply oversold since March 26 which is now a month. Those signals are still showing the stock as deeply oversold today.
CNR Stock Is Down 10.9% From Its All-Time High
CNR Stock Gloom Equals Bigger Portfolio Profits
Yet despite the gloom surrounding the continued decline, my trades are generating great profits as the volatility of the decline keeps put and call premiums elevated. Trading against these fat option premiums is rapidly increasing the income being earned. In short, the Weekly Wanderer Strategy allows me to trade throughout the decline, earn higher returns and continue to work toward protecting my capital from any losses.
Why The CNR Stock Decline Continues
A number of factors are contributing to the decline in Canadian National Railway Stock ………….. the rest of this article is for FullyInformed Canada Members.
This is a full strategy discussion which looks how how to apply the Weekly Wanderer Strategy to trades lasting longer than a couple of weeks. The article discusses how I have used the Weekly Wanderer Strategy in CNR Stock trades to successfully protect my capital while continuing to grow my portfolio. This article is 2100 words in length and will require 8 pages if printed.
CNR Stock (CNR) – How The Weekly Wanderer Strategy Protects And Profits
FullyInformed Canada Members can review the latest CNR Stock trade alert and strategy discussion directly through this link or they can sign in to the full Canada members site here. Non-members can join here or read about the benefits of being a member.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
Stay FullyInformed- Subscribe For Updates
CNR Stock Internal Links:
Review all Canadian National Railway Stock Strategy Articles
Review Portfolios:
Review All Portfolios for US Stocks
Review All Portfolios for Canada Stocks
Review All Retirement Portfolios
SELECT TO REVIEW ALL MY STOCKS
Internal Stock and Option Trades Links
Put Selling Strategies For Members
Covered Calls Strategies For Members
Profit And Income Strategies Index
Stock and Option Strategies For Members
Stock And Option Trades Explained For Members