A lot of the market direction for Thursday will be determined by investors setting themselves up for the jobs numbers both from the USA and Canada which are released on Friday. The past two days of selling have been stronger on the TSX than on the American Stock Markets. However 15000 on the TSX is at a point where many traders will be keen to try to place trades for quick profits.  These traders are not concerned about whether the market will recover from this pullback. They are just seeking out a couple of days of bouncing stocks to add to their profits around the 100 day moving average.

The recent selling has created some interesting opportunities but with those opportunities there is always risk to capital being placed in a decline.

Put Selling In A Decline

Selling put options and trying to avoid assignment of shares can be daunting in a declining market. It can seem to take nerves of steel to peer into the carnage of a decline and pick out stocks that are worth risking capital against through selling put options. This strategy discussion article looks at how I sell put options for big profits against a declining stock while at the same time focus on the safety of my capital being risked during a downturn.

Downturns are scary but they also create some of the most profitable trades I have done. To protect my capital I designed a trade strategy that has worked well at advising me when to risk my capital and when to hold it back.

This strategy discussion article is 2000 words and will require 6 pages if printed. It is for FullyInformed Canada members.

Become A Better Investor: How To Sell Put Options For Big Profits On A Declining Stock And Protect Your Capital


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.