Put Options Used In The Collar Strategy Can Protect Your Stocks

In a bull market there’s a good chance that a stock that you have picked, using some selection process, will increase in value. This is what the average stock picker does, they buy stocks then hope (and often pray) that they go up.

Statistics show that in a bull market about 75% of the stocks will follow the general trend and go up, and in a bear market 75% will also go down. Trading with the trend is the best way to trade as 9 out of 12 stocks will follow the trend and give you the best chance of making gains on your stock purchases.

But what if you own some good stocks and don’t want to sell when the market is clearly going down, or about to go down?. There are a couple of tactics that you can consider, both of which involve the use of options, CALL options and PUT options. There is the widely known strategy called Covered Calls, and the much lesser known one called the Married Put.

Option trading can be very confusing and difficult at 1st, actually it’s not that complicated once you have had a good education in the subject. However if terms like Put and Call Option, Married Put and Covered Call don’t mean anything to you, don’t attempt to trade options until you get that essential education in the theory.

Call options are bought and sold in 100 share blocks, this is 1 option contract. When doing a covered call you sell 1 call option contract for every 100 shares that you own. The value of the call option will go down if the stock goes down, giving you the chance to either let it expire worthless or buy it back at a much cheaper price. Either way you can get about 4-6% downside protection, but if the stock decreases more than this then you will have to take a loss.

The big problem with the covered call strategy is that it only provides very limited downside protection and if the stock takes a big cut like 25%, which can happen, you lose big time and only recover about 3-5% of the loss.

There is a much better way to protect stocks in a bear market than using covered calls, it is called the Married Put. Instead of selling a low credit call option we buy a Put option which can provide a large amount of downside protection. The Put can rapidly increase it’s value as the stock goes down, by how much depends on how carefully the Put option has been selected. The Put is matched to the stock like a good marriage for the best results.

There are a number of parameters that need to be considered when creating a Married Put for protection, the following list highlights the main points:

1. What strike price is selected for the Put option

2. The price of the stock

3. Choice of options, in or out of the money

4. Time to expiration of the Puts

The last point is very important because the Put options that you buy only have a limited life and you need to consider for how long you need the protection. The big advantage of the Married Put strategy over the Covered Call strategy is that if selected correctly it can provide 90-95% loss protection in the event of a large drop in the stock price.

The cost of the PUT is a disadvantage of this strategy if you take a shortsighted approach. There are ways of offsetting this option cost when this strategy is taken to the next level. When traded correctly, with the right stock, the expense of the Put can be offset and good returns can be made when others are loosing their shirts.

The general idea of the Collar Trade is to combine the covered call and married Put strategy into one, this is what is called the Collar Trade. In effect you put a collar around the stock, sell a call and buy a PUT. If you do this correctly most of the cost of the Put can be offset by the credit from the covered call so you can protect your valuable stock at almost no cost. Yes this is a great strategy which the general public is unfortunately very ignorant of, and most brokers don’t understand.

James J. Dehoiver is an expert stock trader, he also loves to learn stock trading systems and master the best technical indicators for stock traders.

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Penny Stocks Trading-A Risky But Good Return On Investment

Penny stocks are inexpensive and risky stocks that can sometimes value a penny or a few dollars. Generally these stocks are often found under $ 1.00 but most identify them as stocks that trade under $ 5.00. Penny stocks cannot trade on the Dow Jones or Nasdaq but over the counter. There are several reasons why such types of stocks are so economical, but they can potentially be very good investments.

First reason why penny stocks are so cheaper is because they signify a financially troubled firm. You will like to avoid these stocks as they frequently have a question at the end of their ticker mark. It is really a waste of expensive time to look at such types of penny stocks globally.

Next reason why penny stocks are low cost is because several are new business ventures just starting out and not aware with penny world. Even though something new and unverified can be risky, they can also symbolize huge opportunities for investors. If you think that the products and services they are selling is high-quality, and that the management is superior as well as the market place, definitely you are taking more risk out of the point. Microsoft was also a penny stock and look at it now. The stock started off at handful of pennies and all through the years rip so many times that the new investors in the firm who had just a few hundred shares ended up after earn several thousand.

If you have sufficient money in your account of penny stocks are an ideal way to expand your possessions. No anyone knows which one will be the next Microsoft so you just need to use a little percentage of your collection for such types of stocks. You can get a tidy return on a number of penny stocks yet they just increase by a few cents.

How to trade penny stocks? This is also a tough question for new investors in the market. One of the excellent ways to begin in the market is with top penny stocks as you only need insufficient to invest in them. If you are able to increase your benefits on a daily basis trading these stocks, you have more prospective to start trading the huge firms and more risky enterprises. There is possibility to lose all your revenue in top penny stocks so be aware of put all your eggs into same basket when it comes to the risky investment in the market.

The author publishes information about great penny stocks, Penny Stocks Picks, best penny stock, penny stocks investing etc. For more information visit our website:- www.otcfire.com

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Asset Management Firms London: One Stop Firm to Buy Dream House

London is one of the biggest and busiest commercial cities in the world that people like students, employees, entrepreneurs and so on from all over the planet visit every month for several purposes. People who come down to the city for a short time generally look for flat share or houses on rent rather than staying in expensive hotels. Property developers and asset management firms form London work round the clock to give a better place to the people who have come here for a brief stay. In London, there are a number of asset management firms that are providing numerous magnificent residential properties for short span of time. Asset Management Firms London offer exquisite choice of rented flats and apartments at an affordable rate to these people visiting the city for a small period.

Home is a place where people come back to relax in leaving behind all their worries, hence one buying a property one must thoroughly check all the details and ensure that the property is completely legal and has no issues even in structural framework . All these firms who manage properties buy damaged and old assets, renovate them and make them ready to sell. Asset Management Firms London takes a systematic path to help clients buy just the right kind of property. After purchasing the old damaged property with the help of investors they concentrate on the refurbishment and development of the residential property adding on to their overall worth and value. While such properties are highly sought after by people willing to own a home, real estate agents and other business units also invest in them heavily so as to gain higher returns on the amount spent.

Making transactions easy and hassle free, property managers and developers also offer wide range of properties online so that people from across the globe can find them and book them as per their requirements. The online service of Asset Management Firms London helps people to select the best house at best prices to enjoy their stay in London. Not only buyers but sellers as well can opt for the services offered by these firms to sell their dilapidated properties. When a person buys a house, he always looks for better locality and best possible amenities at affordable price. As said, the asset management firms develop and renovate the old properties to give them a high quality look, they, on the other, try to give the inhabitants a bunch of high quality amenities as well.

This Asset Management Firms London provides flats, homes, penthouses, luxurious housing, apartments and such other residential space solutions on 12 month or 24 months’ rent. All these houses are widely available for the students, employees, tourists and other people who need an apartment for a short period of time. The online services of the management firms and developers also enable common people to get the full details of the properties like amenities, facilities, price range, span of time and availability and so on facilitating easy selection and booking.

The Author is an expert in asset management with focus on Property Investment In London and London Asset Management

Be Specific While Choosing Business Stock Images for Magazines

Indeed, images are a major factor that can enhance the readability of a story, as they carry the essence of the write-up. However, it is not an easy task to find out a suitable picture for an article. Especially, if you are writing on any business-related issue, you may face problem to find out right business stock images. Mostly, business-based magazines cover the topics that deal with day-to-day issues at the workplace. Many management-related topics are also covered sometime. Considering the breadth of the topics, it may be troublesome for a writer to get the images that complement his or her story. Sometime, you may find an appropriate image, but its size may not match your space criterion.

A quick guidance on how to select business stock images will ease your job.

First you need to make intensive research. The Internet is always a better option for your research work, as it is time-saving and hassle-free. However, most of the writers and editors tend to restrict their search within the image galleries of various search engines. Therefore, they mostly end up choosing wrong images. So, you are advised not to limit your research to the first few pages of search engines’ image galleries, rather expand your research. Many websites on business stock images are coming up. So, it is better to have a look at them. It would be easier to find appropriate images from such websites at a pocket-soothing rate.

You next task is to select business stock images. What is your article talking about? Is it shedding light on how to motivate employees or how to deal with day-to-day activities? Generally, most of the image websites are divided into various segments. Therefore, it is easier for visitors to choose appropriate business stock images by visiting all such sections.

Once you find a business stock image, you need to check the image’s quality first. Due to the space constraint, you may have to crop the image. So, do not forget to check whether the image will lose its attraction if it is cropped.

Many a website also offers single image in different sizes. It is better to opt for such services. It will lessen your job.

The last thing you need to do is to buy your selected business stock images. Most of these online websites are user friendly and you can easily use your shopping cart to buy these images. You do not need to bother about the royalty of the images, as you can easily avail of royalty-free stock images on these websites.

So, if selecting appropriate business stock images has become a tedious task for you, you can now easily put an end to this difficulty.

Mart of Images is one of the best name in the photo industry. We are offering best collections of Indian Images, Business Stock Images, High Resolution, Images and Advertising Images. For more details visit our site: http://www.martofimages.com

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Looking At Stock Trading From A Business Perspective – Part 1

Taking a look at Stock Trading From A Service Viewpoint– Component 1

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Due to the plus size of the stock market, newbie capitalists appear to really feel overwhelmed as to where to also begin spending their cash. To the majority of people, the securities market presents a twisted internet of options however does not supply the road map of clearness to direct their way along method their financial investment experience.

The essential to purchasing the stock market is to come to be as educated as possible to make sure that you know exactly just what is occurring whatsoever times. This assists individuals to make logical as well as sound decisions about their loan, therefore, lowering the anxiety included with investing.

The average individual, when starting to delight the idea of investing in the stock market, comes under one of two categories. Category one is the casino player that feels that spending is certainly a kind of gambling and whatever they do, they are specific that they will lose loan instead of earn money. It appears that this point of view of purchasing stocks is either developed from family and friends that have lost in the stock exchange or personal experience.

If a person has actually directly shed in the securities market, it is quite obvious that they were not informed enough at the time of their investment right into the stock market. As a result, they have to become educated as to exactly what the stock market is in addition to just how it operates in order to become successful investor.

Group 2, on the other hand, stands for the “go-getter” financier, which is an individual who knows that they ought to invest right into the stock market for the safety of their financial future, yet they have absolutely no idea where to start. The “go-getters” have the tendency to leave their economic decisions approximately professionals; for that reason, they are unable to discuss why they have a particular supply.

A normal “go-getter” runs in blind belief, as one supply rises in value, they more than likely will purchase it. The “go-getter” remains in worse form compared to the casino player because they will certainly invest like everybody else then wonder why they get unacceptable or devastating outcomes. This just proves that the average person must end up being thoroughly informed about the securities market along with supplies prior to investment happens.

To Your Stock Trading Success!

Understanding Asset Management

Recognizing Property Administration

Asset monitoring is a form of investment administration. The term property monitoring is in some cases made use of to refer to the management of all financial investments, consisting of assets, or it may be utilized to describe assets that do not drop under the much more common classifications of investment management, fund management or portfolio monitoring.

Property management is one facet of the vast global investment management market. Large financial institutions manage billions of bucks in possessions for companies as well as individuals around the world.

Several experts really feel that independent companies are a lot more successful as well as more vibrant in financial investment management compared to are big banks and insurance provider.

Asset management aids to secure and also expand financial investments. The properties under monitoring may be a large company’s pension plan fund, or an individual’s retired life cost savings. Organizations that handle assets have wonderful weight in the monetary markets as a result of the amount of funds under their control. The decisions these business make regarding how to spend and also move around the money they control can affect the general fluctuate of financial markets.

Pension funds represented greater than $15 trillion of funds that were under property administration in 2004. In comparison, more than $30 trillion of private wide range remained in investments in 2004, about one third which was being handled by financial investment monitoring companies. Possession managers in the United States represent almost half of all funds under monitoring internationally.

Comprehending property monitoring is a made complex subject. If you have big financial investments, you intend to see to it your properties are appropriately handled. Numerous economic experts could supply information regarding the very best fund supervisors, the institutions with the very best track records, and also generally the kind of administration that could be best for you or your business. Different types of economic monitoring are shown, depending upon the dimension of the financial investment funding, the type of the possessions, and also numerous other private variables.