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January 27, 2012
Edited: January 27, 2012
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I love it.
A fab company,PG, getting spanked today by Mr Market.
How about picking some easy cash.
Submitted
Write Puts on PG's April 60 strike,, picking up 54.00 per contract.
I love it.
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By the way, still batting 100% correct on our public calls here . And the beat goes on.....
................how we do it.. see below
At RTMB one looks for the best opportunities to take advantage of market conditions. Today, a market down day, is one of those days.
One major tool in the arsenal is the methodology of Writing Put Options where the writer receives an immediate premium dollar amount for the option of possibly being assigned to buy the underlying stock at a LOWER price by a certain date.
The best conditions are as follows:
a1. The market has a big down day
a2. The VIX (volatity index) goes UP.
a3. A great dividend paying stock getting spanked by Mr. Market
The above three conditions cause put option premiums to get fat; to go even higher
3. A stock you like (and would not mind owning at a lower price if you were assigned to buy it at the strike price). In my case a dividend stock with a history of survival and longevity; a stock, if it were to go down in bad times will come back up in good times)
4. A Fool (someone has to buy your written Put option and there always is one). By the way iconic trolls make perfect Fools.
5. A Thief (you write the put option and collect the premium immediately)
That's how RTMB (Rob the Markets Blind) operates and RTMB has never had a miss; every trade play has been a winner (see DiviMo and RobMarketsBlind public picks announced in blogs on this site)