This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

I Love Google, but Emotion Has No Place in Your Portfolio

Mayer also comes from Google, so she understands from the inside why Google is able to extract mountains of cash from advertising that it produces quarter after quarter. Does that mean I think Google is in trouble and investors should be worried? No, not at all. But it does mean I think most of the low-hanging fruit have already been picked. Google will have to fight harder for each incremental percentage change in revenue and profit than the previous one.

Taking profits off the table doesn't necessarily mean having to sell your shares. An investor can sell call options against some of the holdings to hedge some risk while generating income.

For example, an investor with a cost basis of $500 may not want to sell because of tax considerations. An alternative is to sell the December $1020 strike call option for about $14.25. Based on a highly fluid price of $980, this allows for another $54.25 in gains per share while reducing risk by over 1%.
[Read: <a target="blank" data-add-tracking="true" href="http://www.mainstreet.com/article/smart-spending/technology/why-you-might-lose-all-your-data-soon"><em>Why You Might Lose All Your Data Soon</em></a>]

For investors wondering how to position a $1,000 stock, a conservative strategy may make a lot of sense.

At the time of publication the author was short BlackBerry covered calls.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences.

In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GOOG $632.59 0.00%
AAPL $122.37 0.00%
FB $95.21 0.00%
TSLA $266.79 0.00%
YHOO $37.42 0.00%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs