With the stock market still in correction, many investors find the continual volatility and plunges hard to “stomach”.
When a market is moving higher, selling put options is much easier. Even if a stock is assigned in a market moving higher, often an investor can work his way out of position because the general trend is higher. Markets that are rallying lift the majority of stocks.
In a strong correction such as the correction since the start of October 2018, the deeper a correction goes, the more difficult it becomes for investors, especially emotionally. Many corrections can go as deep as 15 to even 18 percent which would mean for the present correction that the S&P would fall 440 to 530 points to 2500 to 2410. These types of drops can be nerve-wracking for the majority of investors, both novice and professional.
But there are many “tricks” investors can use to beat the bear at his game of trashing returns and disrupting the growth of portfolios.
This strategy article is 2100 words in length and will require 8 pages if printed.
The rest of this strategy article is for FullyInformed Members.
Procter and Gamble Stock (PG) Trade Alerts – Oct 22 2018
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.