Stock Option Investment Advice

DJIA – Price Resistance – Revisited

In article, “DJIA – Stock Price Resistance“, we outlined a bearish strategy for the Dow Jones Industrial Average when the index is close to its historic high using bear call spread options. Basically, the $DJX had to remain below $120.1 for the strategy to be profitable. The options for the $DJX expire “AM Settlement”, and based on the opening price of the stocks in the $DJX on October 20, 2006, the settlement price for the $DJX was $120.16 (see settlement values ).

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Company Earnings: Stock Options Revisited

In a previous article, “Company Earnings and Stock Options Straddle“, we outlined a strategy for taking advantage of “earnings season” for making stock options investments. The idea behind this strategy is for a company’s stock price to deviate more than the net debit as a result of good or bad news published in the earnings report, realizing a profit for the investor.