Profit and Protection Using Options – Rogers Stock (RCI.B) Trade – July 11 2014

Rogers stock has been on my watch list since the stock commenced declining from a high of just above $48 back in January. Since then the stock has been in a steady decline. I discussed entering this trade in Rogers Stock in my 6 trade ideas for Canadian Equities post. Today conditions were ideal and I entered the trade. Many investors believe options are “too risky” when in fact it is stocks that are risky and options are there to assist in reducing and controlling the risk of stock ownership.

Protecting The Capital At Risk

The trade done today is designed completely around using options equally to profit and protect the trade until it is concluded. This is not a long-term trade but instead is built around providing superior returns for a short period which will assist in boosting my entire Canadian portfolio.

Rogers 12 Month Daily Chart

Looking at the 12 month daily chart below you can see that the stock is presently down 12.5% from its high in late 2013 and early 2014. With the stock now at $42, there are just two other levels the stock has reached over the past 12 months, namely $41 and $40. Neither has as much support as $42 has.

Rogers Stock 12 Month Chart to July 11 2014

Rogers Stock 12 Month Chart to July 11 2014

Rogers Stock (RCI.B) Trade Strategy and Analysis for July 11 2014

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