Put Selling Safely With Bollinger Bands and Volume

This article is from the FullyInformed Members category, Become A Better Investor. In my recent article on the Put Selling trade in Illinois Tool Works Stock (ITW) I discussed the importance of the volume technical indicator and the Bollinger Bands when engaged in Put Selling against stocks. There are many methods that can be used to assist investors in Put Selling against stocks with the goal of never being assigned shares. One of the better methods is using the volume indicator against the Bollinger Bands when study a stock’s chart trading pattern to pinpoint the best entry points to sell puts on a stock. This strategy article looks at selling puts at the best possible time to avoid stock ownership and protect capital from loss in a downturn. This article is 2700 words in length and if printed will take 10 pages.

Put Selling Safely

No one wants to sell puts for 50 or 60 cents and then watch the stock plunge leaving them holding deep in the money naked puts. Put Selling is a strategy of small monthly gains on a variety of stocks but continually Put Selling at the wrong time can decimate a portfolio. Instead of small gains an investor can end up with growing losses. This is not the purpose of Put Selling. This article shows a large number of graphics and shows how I use the volume indicator and the Bollinger Bands to determine when to sell puts both on a pull back and when a stock is on the rise.

Put Selling Strategy Article

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