I have written quite a number of articles recently about Target Stock. I like the stock for Put Selling and my most recent trade was on Nov 8 when I sold the $62.50 put strike for Dec 21 expiry for .88 cents on Target Stock. I continually get asked by investors how I manage to get such good option premiums when I sell puts against stocks like Target Stock. The answer comes down to confidence when Put Selling specific put strikes. It is confidence in the strategy that I am using which assists in knowing what put strike to sell and when to sell it and one of the easiest and best strategies is my Trading The Ranges Strategy.
Understanding Target Stock Put Selling Premiums
For example on November 8 when I sold put options for Dec 21 expiry at the $62.50 strike I earned 88 cents. On Nov 20 before earnings were released, the same $62.50 put options could have been sold for $0.77 cents even though the stock had pushed up to close at $66.49. This is because earnings were about to be announced and risk was high. With higher risk comes higher put option premiums. Yet I would have sold the $62.50 again on Nov 20 for 77 cents even with the Nov 8 trade being done at 88 cents.
The next day Nov 21, Target stock collapsed and that same $62.50 put option could be sold for 74 cents. This morning Target stock is lower but the same put option strike is now 65 cents. The risk to the stock is now known and volatility is declining which means option premiums are also declining.
Put Selling For The Big Profits
But wouldn’t it be nice to have sold puts for the big returns earlier or even on the day of the plunge. Have you ever wondered how investors do this? The Trading The Ranges Strategy is what I have used for decades to assist in knowing when to sell put options and at what strike. The Trading The Ranges Strategy is designed to allow me to engage in Put Selling for big profits and safe guard my capital from losses at the same time.
Fear Of Commitment
When a stock like Target Stock falls, investors hold back their capital, fearful the stock will fall further. But when it does they are surprised at the decline in the option premiums. They have missed out on the best put options premiums available. It seems strange to many investors that as the stock keeps collapsing the option premiums keep declining.
To avoid this requires confidence to commit capital and many investors shrink from commitment worried the stock will fall further and damage any capital they may have committed. The Trading The Ranges Strategy is designed to handle this and builds the confidence investors need to commit their capital and earn bigger put option premiums.
Problem With Bull Markets
Bull markets are great. But eventually they will end. The problem is no one will know with any certainty when a bull market is busy putting in place a top. The topping action in a bull market can take months and often when you think that’s what the bull is up to, instead it pushes even higher. All the bull market tops I have gone through since 1973 took months to finally end.
Presently with the S&P at 1800 and the Dow at 16,000 it may seem like a top is imminent. Many investors stay out of stocks just for this reason. They are staying on the sidelines frustrated that “cheaper” prices are not available and they fear committing their capital when prices are “too high”. But many failed to commit their capital in the bear market of 2008 – 2009. Many were so beaten up by that bear market that they refused to invest in the recovery which started in 2009. Trading The Ranges strategy would have helped many of those investors get back into the stock market early while stocks were indeed at “firesale” prices.
While presently many investors stay on the sidelines worried about the height of the market, others are reluctantly committing their capital but are fearful that this market could collapse. But I know from experience that tops take months to be put in place and the market could easily be getting ready to push for another 5, 6, or 8 percent higher into next year. I want to trade and keep my income pouring in. I cannot do this if I have to worry about when the next top may be about to appear.
Trading The Ranges Strategy is Ideal For Mature Bull Markets
The Trading the Ranges Strategy is ideal for a maturing bull market. Using the Trading The Ranges strategy allows me to keep Put Selling against stocks even if the bull market may be nearing an end. It establishes specific Put Selling ranges which can help keep my capital safe and earn exceptional profits while the bull market keeps investors guessing as to when it might end.
Trading The Ranges Strategy For Put Selling Profits
This is a FullyInformed Members Strategy. It is approximately 3000 words in length and will take 9 pages to print. It can be directly accessed through this link or Members can login here. Non-members can join here.
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