General Stock Investment Strategies/stocks


tbaarr wrote at 2016-03-19 04:07:27
saw you question and since i am a market timer. if you wish an opinion . i will give you an example. you said you had apple. a few months back apple was 125 a share after a 6 to 1 split. lets say you had 100 that became 600 shares so 125k worth of stock. the last thing you want is to sell it but you do want some of that cash out. so if you had used a covered call at say a 135 strike good till 2018 you would have been paid 1700 a contract times 6 contracts 0r 10200. when the recent correction occured you would have been able to buy those contracts back for 600 a contract thus having a short term profit of 6600 ie 6 times 1100. if apple had gone up and they called you out and made you sell your stok. you would have made 135 a share from the sale plus kept the 17 dollars a share from the exercised contract. thus your total gain would have been 152 a share. yes you would have had some tax to pay. but you would have made money either way. be aware i only trade 5 or 6 stocks but i have timed them since 1986. ibm is 1 cat is 1 mo is a recent add. i would also suggest you look at the udow the next time the market drops 500-800 points. its a proshares etf that follows the dow like a puppy. ie the dow goes up 100 points the udow goes up a dollar. and if dow drops the udow drops. when the recent correction occured the udow was bouncing between 45 and 49 a unit. its now 66 a unit 6 weeks later and i am out with a nice profit. look for a correction around 30 june which is fiscaal year end of retail and then a rise toward aug 5. check the past ten years of dow graphs and you will notice this consistant pattern. it should be really good this year as its an eection year and the guys in office want the dow high so they look good.

General Stock Investment Strategies

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Michael Weiss, CFA


I can answer most questions about stock investment strategies, especially those related to value and growth


I am the owner of Series 7 Exam Tutor , a financial tutoring business that provides personalized tutoring for the Series 7 Exam, the Series 6 Exam ,the Series 65 Exam, the Series 66 Exam, the Series 63 Exam and the Series 24 Exam . I also offer tutoring for finance courses. For additional information, please visit, Finance Exam Tutor. Prior to launching Series 7 Exam Tutor, I worked in investments for 20 years with the majority of this time focused on investment analysis and portfolio management. I have worked for large companies such as Merrill Lynch and Evergreen Investments and have also worked for smaller firms as well. Throughout my career, I have sought to mentor younger colleagues whenever possible, especially those enrolled in the CFA program. I completed the CFA program in 2002 after passing all three exams on the first try. I also passed the Series 7 Exam with a score of 94%. For additional information about me, you can visit the links below:

CFA Institute and CFA Society of Philadelphia


M.B.A. in Finance & Investments from the Zicklin School of Business at Baruch College and a B.A. in Finance & Economics from the City University of New York Baccalaureate Program.

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