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Strategies & Market Trends : Ted Warren's Investolator

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To: robert b furman who wrote (973)3/22/2022 11:01:42 AM
From: robert b furman3 Recommendations

Recommended By
investolator2000
Kahlua
stackedinvest

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On 10/15/2021 I sold 5 FTK $1.00 puts for 20 cents. That credited my account with $97.44.

Last friday those Puts expired to 00.00. That allows me to keep the $97.44.

I will buy 100 shares of FTK if the price ever dips down to 1.00 or less.

Slow accumulation of a stock funded by time decay is a technique utilized by what Ted called insiders. Not employees of a company, but accumulators of a company's stock.

If a company pays a dividend that accumulation rate can be greatly accelerated.

Just another tool in accumulating a stock that is in consolidation.

This displays a very slow technique that is the opposite of what the speculator feels.

Time (as in time decay) allows the slow accumulation of shares and does not make the investolator anxious.

In fact the longer it goes and does not increment up in price, the faster the accumulation occurs.

It is part and parcel as to why some consolidations take so long.

It surely is not the only way, but it is a way that takes no new cash from your account to get more shares.

It is slow and it took me decades to discover.

I'm sure people with a lot of cash in their account, do it in a big way.

If you have a favorite stock and it has been going sideways for a long and steady time,next time before you buy more shares try selling a put and receive cash for it. Selling the put is always worth more as a previous low in price is approached. The fear of new lows builds premium in the put.

I sold that put as the price dipped below $1.00. If the price of the stock would have been below $1.00 on last Friday, I would have been assigned the stock at a cost of 80 cents.

I was OK with either alternative.

Try to use this technique and get some extra cash or buy your favorite stock at a below market price.

Do it three months out, 6 months out, 9 months out, and 12 months out. Once the 12 months out gets 9 months out resell the 12 month out if it is available.

I hope this helps all of you Ted Warren investolators enjoy the long consolidations.

Again deploy this technique when new lows in price are achieved or neared.Make long term consolidations your friend vs a foe.

My 5 June $1.00 puts I sold for 30 cents are now trding at 10 to 20 cents a $72.50 gain. That shows how selling further out in time gets one more premium.

Hope that helps, in a small way.

Bob
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