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Author: Teddi Knight

XOM Stock – Selling Puts By Design Part 2

XOM Stock while down 23% from its April 2011 high of around $88.00 is still a terrific performer for my strategy of selling puts for income. While the strike points I chose for selling puts in XOM stock may appear random to the casual investor, they in fact are by design based on historic patterns in Exxon Mobil stock. This design falls within my strategy of owning the shares at historic lows and paying for those shares through other people’s money, while keeping my capital safe from market swings and any losses. This is the second and concluding article which looks at a simple strategy that once understood by investors and implemented, reaps strong gains while protecting the original capital from losses.

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Microsoft Stock – Selling Puts By Design

Microsoft stock has been a stellar performer for almost 10 years. I have reaped double digit returns every years through carefully selecting put strikes to sell and earning capital which will one day assist in paying for the stock. The put strike selection though is not randomly done, but is through careful analysis of the history of the stock. Through such analysis I can work my position to the point where, if assigned shares, I will be in the stock at bear market prices which affords me the luxury of not just owning a great company at a great price, but also of being able to earn additional capital through selling covered calls. In a market as volatile as the past few years have been, stock analysis I believe is essential to preserving my capital as well as guaranteeing low valuation placement in stocks.

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