Nucor Stock has been in my Put Selling US Stock portfolio since 2010. Every once in a while I get emails from investors wondering why I would be Put Selling against a stock that has such a high PE. Nucor Stock has a PE of 37 times and a price to cash flow of 13 times. These are not low numbers and I can certainly understand the concern of some investors. But to successfully sell puts against a stock like Nucor Stock it isn’t the PE or price to cash flow that I am watching. It is the trading pattern that the stock has around support levels that is the key to successfully earning income while avoiding stock ownership.
This article discusses the importance of understanding stock trading patterns as well as the selection of stocks. Each year I have earned double-digit returns with Nucor Stock and avoided stock assignment. This is not by accident but by carefully pinpointing support levels within trading patterns as well as understanding the selection of stocks.
Put Selling Against Trading Patterns in Nucor Stock
While Nucor Stock is the stock being explained, this method used for Put Selling profitably and as safely as possible can be applied to any stock. This article is 3100 words in length. If printed it is 10 pages long.
This strategy article is an in-depth strategy study from the category of Become A Better Investor. As such it is for FullyInformed Members. Members can can login directly through this link or Members can sign in to the full members site here. Non-members can join here.
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