All posts by Dave

Winning With Naked Puts

Welcome to this edition of Dave’s Market Insights.

Signs and Advantages in Selling Puts
I want to put it all together for you today with selling a put.  I also want to talk a little bit about Facebook. We’re going to use them as our example today.  So when I talk about putting it all together, that means reading all the different signs that can help you in putting on a trade, making sure that you are putting yourself in a place to be successful with that trade.  I want to talk a little bit about the advantage of selling puts, as a way to do that with that.

As we look at the chart, Facebook has been really walking sideways. The Bollinger bands have started to squeeze. Typically, when the Bollinger bands start to squeeze on a stock, index, or anything, this is usually preceded by some sort of larger move, either up or down. We don’t know really which way it’s going to go. We also know that it’s energy on the fractal energies daily chart is very charged up, meaning that any day it can move a significant amount on the stock. We also know that Facebook just came out, and they’re releasing it this week with their new advertising platform on mobile. And everybody’s touting the fact that they are really doing the mobile thing right. They’re going to take over there, and they’ve actually been upgraded. So right now it’s favoring up. This means we want to want to be able to place a trade on this stock that, A, we can take advantage if the stock goes up, and B, even if it goes down, allows us to still take advantage of it.

One of the ways we can do that is by selling a put. The nice thing about selling a put is that you get paid up front; you get to make money upfront for taking on a potential risk. Another good thing is that you’re typically selling at a lower price. Looking at the chart you’ll see it’s really stayed and had a good support level at 55 on Facebook. And then we can come down below that and we can see there’s another support level around 51, so 50. And then ultimately 45, right in that range is the largest level of support over the last year really. We want to be able to place a trade in any one of these areas, and be paid to do it. And that’s what we’re going to do. Follow along with me on the video where I go to the options change and explain how this works.

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Winning with Naked Puts (a.k.a. Uncovered Puts)
So you’re essentially giving yourself the ability to purchase the stock at a lower price in the future.

Now I don’t know about you, but understanding just the markets, understanding these high flying tech stocks and stuff, if you got Facebook at $50 and held it for the next year, to 2015, chances are it’s not going to be at $50. This is a stock that we probably will see with the likes of Apple, Google, Netflix, all these other ones that end up screaming higher, especially as it begins to make more and more money.

So it’s a good time to do this on Facebook. There are other stocks that it doesn’t make sense to do this on, but it’s a good time to look at doing this on a stock like Facebook. So that’s how selling a put can be to your advantage, no matter which way the stock goes and put you in a great position to, not only make money, but profit in a number of ways.

Thanks for tuning in, and we’ll see you in our next edition.
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Playing Both Sides of PLUG

In today’s video, Dave shows you how you can profit from selling premium on both sides of PLUG

 

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A New Year and A Big New Opportunity!

In this edition of Dave’s Market Insight, Dave shares his thoughts on an upcoming opportunity happening in January…

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A Timely Trade in UNXL

In today’s video, Dave shows you what you can do to take advantage of a stock affected adversly by news….

 

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Get Paid to Hedge Your Bets…

In today’s Market Inisght, Dave shows you how you can get paid to hedge your bets using silver….

 

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Selling Your Way to Profits

In today’s Market Insight, Dave explains why the you want to be a “seller” and not a “buyer….”

 

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Protecting Your Downside

In today’s edition of Dave’s Market Insight, Dave shows you a simple way to protect yourself from odds that are against you with buying stocks…

 

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A Simple Cashflow Commodity Play

In today’s Market Insight, Dave shows you how you can play oil in a simple way without having to worry about the daily, weekly, or monthly volatility that commodities have…

 

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Playing the Market Swings…

In today’s edition of Dave Market Insight, Dave shows you how you can take advantage of the market swings with individual equities and protect yourself in the even of a downturn or correction…

(This is a little longer video as multiple topics are covered, so please take your time)

 

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VXX Double Play

In this edition of Dave’s Market Insight, Dave shows you how to play both sides of a trade, reduce your risk, and create cashflow…

 

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