There are many ways to profit in a declining stock market, but I want to discuss a method where your downside risk is limited while upside potential profit remains huge.
The stock market has been in a mid-term up trend for many months now and these stock increases have been fuelled by speculation and greed. There [...]
Canadian Stock Talk
Category Archives: Option Investment Strategies
How to Profit in a Down Stock Market
How to Protect Yourself from a Red October in the Stock Market
A basic definition of a Red October in the stock market is one of carnage. Red October is synonymous with panic selling followed by a wave of bearish behaviour in the markets.
The Hunt for Another Red October could be occurning in the stock market this October as well.
Since this may not be fresh in everyone’s [...]
Best Way to Profit from Over Valued Oil Prices
Best Way to Profit from Over Valued Oil Prices
Oil prices have increased dramatically over the past few months and Goldman Sachs Group GS is now calling for $200 oil again. If that isn’t a huge reality check than I don’t know what is. Last time Goldman Sachs had an analyst made a prediction like that [...]
How to Profit: Oil and Gas Crack Spread
Oil and Gas Crack Spread: How to Profit from an unrealistic Spread.
Spread out of whack: Natural Gas Crack Spread
When you hear oil and gas futures traders talking about the crack spread what they really mean is the difference between the price of crude oil and petroleum products extracted from it. The ‘Crack’ can be though [...]
Top 10 Option Investment Strategies
Top 10 Option Investment Strategies:Neutral to Bullish Strategies
1) Long Call: Simply buy a call option on a stock. This provides unlimited upside potential and caps the associated risk at the amount paid for the stock option. For Example, say you have $1600 and think Google (GOOG) will increase in value: say it is currently trading [...]
Neutral Market Stock Option Strategies
Neutral Market Option Strategies
There are 5 common Neutral Market Option Strategies implemented by investors: Short Straddle, Short Combination, Long Straddle, Long Combination, and Time Spread.
1) Short Straddle: This strategy is implemented by simultaneously writing a put and a call option on the same stock with the same strike price and the same expiration date.
When to [...]
Bearish Option Strategies
Bearish Option StrategiesThere are 6 common Bearish Option Strategies implemented by investors: Long Put, Protected Short Sale, Covered Put Sale, Short Call, Bear Put Spread, and Bear Call Spread.
1) Long Put: This strategy is implemented by simply buying a put option on a stock that an investor feels will decline in value. The Long Put [...]
