That Sinking Feeling On Encana Corporation Stock (ECA) – Rescue Strategies – Investor Questions

In the downturn in energy many investors are holding losing positions on energy stocks. Whether they are holding shares or are holding options, there are a lot of investors with losses. There are though ways to rescue every trade. Some are complex and others simple to apply.

Recently an investor wrote in worried about his position in Encana Corporation Stock which trades on New York under the symbol ECA. This stock also trades on the Toronto Stock Exchange under the same symbol. Let’s review his question and then my answers.

Investor Questions On Encana Stock

Hi Teddi,

Due to serious setback in Energy stocks (I was heavy in this sector), I am losing confidence, suffered loss, and trying to get back to investing. Just now I was reading your article https://www.fullyinformed.com/members/steps-to-building-and-protecting-a-profitable-portfolio-investor-questions/

Realized and decided to get out of stocks and concentrate on put selling only, or buy couple of hundred of some good stock for profit only. Please guide me how I can get out of ECA stock and use that money towards put selling.

Encana Position:

Presently I own 700 stocks at an average cost of $21.81 (US Funds) and the current stock price is $18.63 (US).

Expired call Ont 18^th, 2014 – 400 stocks – got net of $388.04

Active call for Jan 15^th, 2015 – 300 stocks – premium recd $ 259.29

Open Puts on this stock:

April 2015 3 puts at $21 Rolled – $1009.27 Rolled on Oct 15^th 2014

Jan 2015 3 puts at $20 – $124.29 Was done in September 2014

My Goal is to minimize loss / breakeven, free up cash blocked by these stocks, and move on to put selling, mostly, as recommended on trade alerts from your US membership site.

(Latest email) – “At present, my concern is to convert stock to puts, and use money for other opportunities. As I have 700 shares, 300 can be left in my portfolio as there are calls, rest, to use your strategy to make a bit of money on other put opportunities.”

With your help, trying to get back to disciplined put selling. First two years were alright, made around 10%, however, presently, I am losing, and may give back part of those first two years. Most of all, need to get my confidence back. Your help is much appreciated. Frank

The rest of this article is for members.

Rescue and Recovery Strategies for Encana Stock Collapse

This strategy article is 4600 words in length and will require 12 pages if printed. FullyInformed USA Members can directly access this rescue strategies article here or they can sign in to the USA members site here. Non-members can join FullyInformed USA here or read the benefits of being a member.