V. 20:9 (64-65): Explore Your Options by Tom Gentile
Product Description
Explore Your Options by Tom Gentile
BEARISH STRATEGIES
Tom, I have noticed you have been pretty much bearish in this market for the better part of the year. Which strategies have worked best with the bearish tone you have projected?
That depends. Let’s look at a few stocks I have been bearish on for the past few months, and the strategy I picked for them. For example, I decided Cisco [CSCO], Computer Associates [CA], Charles Schwab & Co. [SCH], Ford Motor Co. [F], Eli Lilly [LLY], and CVS [CVS] were all bearish by simply looking at the patterns, but it was the volatility that told me what strategy to take. These stocks were all cheap to begin with, and the low implied volatility convinced me not to take too complicated a strategy. Instead, I simply bought 60- to 90-day put options only.
BEARISH STRATEGIES
Tom, I have noticed you have been pretty much bearish in this market for the better part of the year. Which strategies have worked best with the bearish tone you have projected?
That depends. Let’s look at a few stocks I have been bearish on for the past few months, and the strategy I picked for them. For example, I decided Cisco [CSCO], Computer Associates [CA], Charles Schwab & Co. [SCH], Ford Motor Co. [F], Eli Lilly [LLY], and CVS [CVS] were all bearish by simply looking at the patterns, but it was the volatility that told me what strategy to take. These stocks were all cheap to begin with, and the low implied volatility convinced me not to take too complicated a strategy. Instead, I simply bought 60- to 90-day put options only.
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