June 23, 2017
Categories: Investor Questions, Rescue and Repair Strategies
Target stock (TGT) has definitely taken a beating along with most of the retail sector. Much of the blame can be placed with Amazon’s continuing encroachment on most retailers market share but at the same time stores like Target are also to blame for not competing strongly with Amazon, developing an online presence that is equally responsive to customer needs, contains a variety of product and has fast and inexpensive delivery methods. In short many retailers are not moving as fast as their customers…
Read More
June 23, 2017
Categories: Investor Questions, Rescue and Repair Strategies
Questions from an investor needed some answers on when to start a rescue strategy after a naked put position that was once out of the money, goes into the money as a stock declines. Let’s review the question and then look at some answers. Investor Questions Dear Teddi!I am a new member, admire your website. I have seen quite a few trading web sites. So far nobody stands even close in my humble opinion. If I may, I have a question. After selling naked put,…
Read More
March 23, 2017
Categories: Become A Better Investor, Home On The Range Strategy, Rescue and Repair Strategies
Yesterday I wrote that pullbacks and corrections are common in bull markets. It is the market’s way of building support bases and consolidating increases in valuations. Pullbacks and corrections are an important element of investing. The problem is that for almost 5 months the market has not experienced a move lower of even 1% in a day. This makes it easy for investors to jump into stocks and figure that everything is just going to keep moving higher. That is rarely the case. When…
Read More
March 22, 2017
Categories: Investor Questions, Rescue and Repair Strategies
Corrections and pullbacks are common in Bull Markets. The pullback on Tuesday March 21 saw my inbox flooded with questions for advice and suggestions on fixing trades. A lot of the questions were similar. Investors held on to short put option positions as the market fell apart. Many by the close of the day were down quite a long way. This article is longer than it was originally intended but it touches on key aspects of deciding when to roll-down or get out of a…
Read More
March 8, 2017
Categories: Investor Questions, Rescue and Repair Strategies
With the “Trump Rally” continuing to hold its gains a lot of investors who went short the rally are staring at some pretty big losses. An investor recently posted his dilemma with a VXX trade where he is holding 3600 shares at an average price of $33 and the VXX is presently (Mar 8 2017) trading for $17.00. Original Capital invested is $118,800.00 and the trade is down 50%. So should the investor take losses, get out and try to recover $57,600 in losses or…
Read More
March 5, 2017
Categories: Investor Questions, Rescue and Repair Strategies
When an investor decides that a bullish run in stocks is either overdone or could result in a snap pullback often they will judge the time as right to buy a protective product such as the SDOW Ultra Short Dow 30 ETF. This product attempts to provide results that are three times (3X) the daily performance of the Dow Jones Index. That means in theory that if the Dow Jones Index were to fall 1%, this ETF would rise 3%. If the Dow Jones rose…
Read More
February 28, 2017
Categories: Rescue and Repair Strategies, Target Stock (TGT)
It was just 6 weeks ago that Target had indicated that traffic and sales trends disappointed during the holiday season. Today investors got to see just how bad the earnings were. Analysts were expecting $20.70 billion in fourth quarter revenue. Instead the company returned $20.69 billion . Last year for the same quarter revenue was $21.6 billion. It was their outlook for 2017 that is the real stunner. They anticipate sales and revenue between $3.80 and $4.20 a share. For the first quarter they expect…
Read More
December 22, 2016
Categories: Rescue and Repair Strategies, Target Stock (TGT)
With only 3 days left for Christmas shoppers, the retailers are being hammered today as investors are concerned about profits and revenue numbers. Bed Bath and Beyond stock (BBBY), which I do not trade is down 8% after having a nice run-up from its November low. With this kind of pressure, the stock could easily drop to $39. Overall I have never been impressed with the company and as such I have stayed cleared of investing in it. Walmart stock (WMT) which I do trade…
Read More
November 18, 2016
Categories: Facebook Stock (FB), Investor Questions, Rescue and Repair Strategies
On the Members forum, Aby posted a problem with her Facebook Stock trade. On Friday Nov 18 Aby has naked puts at the $129 put strike set to be assigned. Repairing Deep In The Money Naked Puts In The Facebook Stock When selling puts for income it is important to always find support levels and set up trades at or below those levels especially in volatile stocks like Facebook. The $129 put strike had good put premiums but it was far above any support and…
Read More
October 10, 2016
Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies
It was just back on September 27 I was writing about the repairs I had entered on my trades in Bristol-Myers Squibb Stock and today the stock is collapsing as Merck has announced positive trial results for a competing lunch-cancer treatment drug. This has investors bailing on Bristol-Myers Squibb Stock once again. Remembering The Key Aspects Of A Collapse When a stock that I am trading collapses and leaves me with potential losses I know that there are two key aspects of recovery to focus…
Read More
September 27, 2016
Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies
Another trade this morning in BMY Stock continues to work my repair of the current trade in Bristol-Myers Squibb Stock. Remembering The Key Aspects Of A Collapse When a stock that I am trading collapses and leaves me with potential losses I know that there are two key aspects of recovery to focus on. 1) Keep the capital invested producing income 2) Reduce the risk of further loss to the invested capital My trades done today continue to meet both of the key aspects of…
Read More
September 11, 2016
Categories: Bristol-Myers Squibb Stock (BMY), Rescue and Repair Strategies
Stocks are among the riskiest of assets. They can be incredibly rewarding and can also lead to stunning losses. This is why the selection of stocks to invest in is the number one key aspect to successful investing. However every stock will inevitably run into trouble and see declines at various times in its history. There are hundreds of factors that can cause a stock to fall including changed in management, change in packaging, change in consumer or corporate demand, currency swings, dividend changes and…
Read More
August 19, 2016
Categories: Bristol-Myers Squibb Stock (BMY), Investor Questions, Rescue and Repair Strategies
Recently I received an email from an investor who was assigned deep in the money naked puts in Bristol-Myers Squibb Stock. I am also holding deep in the money naked put positions on BMY Stock that can be assigned at any time. There are many different strategies that can be used to repair this type of loss. This article shows how by focusing on recovering the loss quickly an investor can set realistic goals and implement strategies that can work to both protect repair positions…
Read More
August 18, 2016
Categories: Facebook Stock (FB), Investor Questions, Rescue and Repair Strategies, Selling Options For Income
Many investors love to set up credit call spreads in bull markets. In my opinion they are better suited to bear markets or for individual stocks that show signs of definite stress or weakness. An investor emailed after credit call spreads he placed in Facebook Stock (FB) ended up in the money as Facebook Stock continues to rise. Since placing his trade, the Facebook stock has shot higher and it is now beyond his short call strike leaving him with a probable loss. Let’s review…
Read More
July 22, 2016
Categories: Investor Questions, Rescue and Repair Strategies, Selling Options For Income
n bull markets, shorting call options can often work against an investor. Setting up credit call spreads can often assist in protecting against larger losses rather than using naked call trades. An investor on the Yahoo forum recently posted his dilemma with Microsoft Stock and his credit call spread position. Since placing his trade, the stock has shot higher and it is now beyond his short call strike. Let’s review his question and then look at some suggestions: Investor Questions: On June 29 I sold…
Read More
