Thank you for this insightful article. I always enjoy studying your thought process in decision-making. If I may offer a small suggestion to enhance the art of selling, it would be to consider incorporating option strategies.
What do I mean? For instance, if I notice stagnating growth or declining margins but remain uncertain about the trend's continuation, I might buy a protective out-of-the-money (OTM) put. The strike price and premium I’m willing to pay would vary case by case, but this approach gives me time to make a more informed decision, while insuring me against further declines.
Another way to exit a position is by selling an at-the-money (ATM) or slightly in-the-money (ITM) covered call. This strategy increases the likelihood of selling the shares while earning a bit of extra premium as a bonus.
Of course, these strategies aren’t always applicable, but they serve as additional tools in the investor’s toolkit.
Great reading. I have 12 rules on selling. Let me know what you think. https://arvy.ch/when-should-you-sell-twelve-rules-show-the-way/
Great article. Thank you
Marius,
Thank you for this insightful article. I always enjoy studying your thought process in decision-making. If I may offer a small suggestion to enhance the art of selling, it would be to consider incorporating option strategies.
What do I mean? For instance, if I notice stagnating growth or declining margins but remain uncertain about the trend's continuation, I might buy a protective out-of-the-money (OTM) put. The strike price and premium I’m willing to pay would vary case by case, but this approach gives me time to make a more informed decision, while insuring me against further declines.
Another way to exit a position is by selling an at-the-money (ATM) or slightly in-the-money (ITM) covered call. This strategy increases the likelihood of selling the shares while earning a bit of extra premium as a bonus.
Of course, these strategies aren’t always applicable, but they serve as additional tools in the investor’s toolkit.
Best regards!