Monday, August 8, 2011

Best ways to take advantage to the situation

1. Until the market is falling buy puts of the best companies that have good put volume. Do not buy calls .

2. buy CALLS when the market reaches the equilibrim stage when the market starts to show the up and down waves for a couple of times. That is when the bottom has reached. That is the time to buy CALLS on companies like Apple.

3. Today some of the puts when up 200 percent. SIMPLY AMAZING.

4. Also the option volume is high in BAC.

5. Advantage of having a long term account with SHARE BUILDER is that the stable stocks do not decline much. Also it give some cushion to use buying options with margin money.  When portfolio is declining because of massive selling, hedge it with options on stocks like Apple or any high volume decline option sector. Right now it is the banking sector like Bank of america or Citibank.

6. This give good hedging and also protects the capital.

Try to buy IN THE MONEY or AT THE MONEY options. DO NOT BUY OUT OF THE MONEY OPTIONS. They are the most dangerous.

7. Buy Walmart stocks for 48 dollars. That is a good price to buy. It is a very stable stock. Then with them margin money you can buy options. Either you can buy puts or calls depending on the trend of the market.

8. This is the time to invest wisely use all the knowledge you have. Its a challenge.

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