Zacks highlights commentary from People and Picks Member «DiviMO».
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Featured Post
Daily commentary: Playing this market with protection
I have added to my non-commission etfs and index funds positions the last couple of days. I rarely keep these for more than a couple of days, trading in and out. SInce these are traded in a non-taxable account and I pay no commission, I can follow the market and get in and out with ease and not be concerned with tax issues.
However, I can only buy the non-commissioned etf long. My broker does not allow me to short these. However, I can buy non-commission inverse index funds. The funds need to be held at least one day. The etf’s I can trade in and out during the daily sessions. There are a number of brokers that provide non-commission ETF trades. If your broker doesn’t provide them, I suggest you fire your current broker and join one that does. It is a huge advantage.
With the market making hay but with the way the market has reacted the last couple of months, I want to have some insurance protection in case the market turns negative. I have submitted a limit order to buy SPY puts. I am considering the AUG 133’s. With the market up today, I am trying to buy these at a more favorable price. There was once a time where I advocated selling stock positions if the share price dropped off 7% from my base cost. With dividend stocks, I prefer to hold them during both good and bad times and protect them by hedging such as with protective puts. I can also utilized other option methods such as writing puts, writing covered calls, and option spreads. In this account, my broker does not allow me to write naked calls however.
The most recent picks by «DiviMO» are:
A buy rating on Amazon.com (AMZN),
a buy rating on Netflix (NFLX) and
a buy rating on Darden Restaurants (DRI).
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