Hi everyone,

Happy Friday to you all! I have placed a new Put Spread trade today on AMP. This stock has been going sideways for the last few months, and I’ve decided to jump in today as it looks to be bouncing off support.

All my indicators that I use to trigger an entry signal, have been met here and with an over 42% ROR, plus 85% of my capital protected, the time seemed right to jump in. If you would like to see what indicators I use and how I use them, I tell all in my ebook, Market Mum’s Journey to Stock Market Riches!

You can see from the chart below that the stock is sitting on support and the Cstats are in the oversold zone, as well as hitting the lower bollinger band. The income on this trade brings my breakeven down to $4.78, so the stock has to fall below this level before I start to lose money.

AMP Chart - June 2009

If the stock remains below my strike price of $5, I am happy to buy the stock as there is a dividend coming up for AMP in September and its a good opportunity to receive more income from this stock. Plus if exersised, I revert to my Capital Protected Income Strategy, whereby I use the Collar strategy to receive monthly income.

The details of the trade can be seen below in the spreadsheet.

AMP Worksheet

That’s all for now, as always Happy Trading and remember…

Mum’s the Word!