Bear GIF Arrow and Title: Peaks and Valleys Investment Group GIF Bull GIF

Investment Methodology
(Situational Stock Transaction Chart)


The table below has projected stock movements (over the next few months) charted against the types of purchasing and selling mechanisms to be used. All Calls and Puts are with a strike date within the projected timeframe (ie. within the next few months, preferably 1 month).

For an overview of stock options, review the material in Stock Option Concepts / Strategies.



Projected

Stock Movement
Purchasing and Selling Mechanisms
Put Buy Call Sell Stop Loss

Sharp Rise

Yes
(limited profit)

Best

No

No

Best

Rise

Yes

No
(unless long term)

Yes
(limited profit)

No

Best

Rise
(Recent Decline)

Best

Yes

No

No

Yes

Stable

Best

No
(unless long term)

Best

No
(unless profit taking)

Best

Decline
(Recent Rise)

No

No

Best

No
(unless profit taking)

No

Decline

No

No

Yes

No
(unless profit taking)

No

Sharp Decline

No

No

Best

No
(unless profit taking)

No

Notes:





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