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Monday, March 17, 2008

Bear Stearns Losses Were Avoidable

All of this volatility made for a nice time to sell some option premium. That's what I found myself doing after the morning rally failed.

Bear Stearns has certainly been the talk of Wall Street but is just the most recently casualty of the credit market fall-out.

The reality is that the warning signs on Bear Stearns were present for months. If you were paying attention, you could have avoided the pain of owning Bear Stearns stock by selling your shares, or by purchasing put options.

It was also quite possible to make money on the short side. If you have a few minutes, take time to watch a video presentation that shows you exactly what I'm talking about.


The analysis that forewarned of Bear Stearns tumble, is applicable to any other stock that you might trade. There are going to be more casualties before we see the next bull market, so take the time to watch.

Christopher Smith
TheOptionClub.com

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