Comments on: Protecting Stock Profits: Here’s the Breakdown of the Ultimate “Safety Net” Trade http://www.investmentu.com/2010/February/protecting-stock-profits.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 09 Feb 2012 16:06:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: KNP http://www.investmentu.com/2010/February/protecting-stock-profits.html#comment-40679 KNP Tue, 30 Mar 2010 21:32:20 +0000 http://www.investmentu.com/IUEL/2010/February/protecting-stock-profits.html#comment-40679 Sell the out of the mony covered call and use the proceed to buy atm put option purchase may be very little debit.3month expiration each time you write the option. Sell the out of the mony covered call and use the proceed to buy atm put option purchase may be very little debit.3month expiration each time you write the option.

]]> By: Myron Martin http://www.investmentu.com/2010/February/protecting-stock-profits.html#comment-36255 Myron Martin Sun, 21 Feb 2010 17:00:39 +0000 http://www.investmentu.com/IUEL/2010/February/protecting-stock-profits.html#comment-36255 Karim is certainly the expert on using LEAPS calls and I am excited about the strategy so I bought Jan. 11 $40. Calls on VALE for .70 and $50. CALLS for .20 and 2012 $40. calls for $2.23 which is not a big investment for the potential for VALE to rise near its previous high over the next 2 years. There are probably dozens of prominent companies that fell hard in late 2008 that could be good LEAPS candidates, and the risk/reward factor for people with limited capital should be quite good compared to buying shares in the $50. to $100. range Karim is certainly the expert on using LEAPS calls and I am excited about the strategy so I bought Jan. 11 $40. Calls on VALE for .70 and $50. CALLS for .20 and 2012 $40. calls for $2.23 which is not a big investment for the potential for VALE to rise near its previous high over the next 2 years.

There are probably dozens of prominent companies that fell hard in late 2008 that could be good LEAPS candidates, and the risk/reward factor for people with limited capital should be quite good compared to buying shares in the $50. to $100. range

]]> By: Robert http://www.investmentu.com/2010/February/protecting-stock-profits.html#comment-35937 Robert Wed, 17 Feb 2010 18:32:26 +0000 http://www.investmentu.com/IUEL/2010/February/protecting-stock-profits.html#comment-35937 Good option but a better option is to sell your shares lock in 20 profit and just sell naked puts stk at stk of 40, your upside is premiun of the puts downside is new entry point for PBR low 30's which is probably a good buying opportunity..Also you could buy otm calls in the 50's to have additional upside.. The one thing I don't like about your strategy worst case gain is 7K..Of course all strategies should be adjusted to reflect the mkt conditions as you did in 3/09. a better option instead of buying the stlk would have been sell in the $$ puts if premiuns are high better to be a seller then be a buyer Good option but a better option is to sell your shares lock in 20 profit and just sell naked puts stk at stk of 40, your upside is premiun of the puts downside is new entry point for PBR low 30′s which is probably a good buying opportunity..Also you could buy otm calls in the 50′s to have additional upside.. The one thing I don’t like about your strategy worst case gain is 7K..Of course all strategies should be adjusted to reflect the mkt conditions as you did in 3/09. a better option instead of buying the stlk would have been sell in the $$ puts if premiuns are high better to be a seller then be a buyer

]]> By: Mike http://www.investmentu.com/2010/February/protecting-stock-profits.html#comment-35933 Mike Wed, 17 Feb 2010 18:01:09 +0000 http://www.investmentu.com/IUEL/2010/February/protecting-stock-profits.html#comment-35933 I have 3 stocks with 100% plus gains. But if i sell them before one year is up Ihave to pay 30 % plus capital gains tax. What do I do? I have 3 stocks with 100% plus gains. But if i sell them before one year is up Ihave to pay 30 % plus capital gains tax. What do I do?

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