Tag: buy to close puts early

XOM Stock – Selling Puts By Design Part 2

XOM Stock while down 23% from its April 2011 high of around $88.00 is still a terrific performer for my strategy of selling puts for income. While the strike points I chose for selling puts in XOM stock may appear random to the casual investor, they in fact are by design based on historic patterns in Exxon Mobil stock. This design falls within my strategy of owning the shares at historic lows and paying for those shares through other people’s money, while keeping my capital safe from market swings and any losses. This is the second and concluding article which looks at a simple strategy that once understood by investors and implemented, reaps strong gains while protecting the original capital from losses.

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