Insurance Sector is Breaking Out
Insurance stocks have declined sharply during the recent bear market. For example, Prudential Life Insurance stock declined 90% during the recent bear market and MetLife declined 84%. Many of the insurance stocks were priced for bankruptcy. The insurance sector has since recovered some of its losses since March but I think many of the life insurance and property and casualty insurers like Prudential and MetLife still represent good value and have further upside potential.
The Insurance Index ETF is currently on a MACD “buy” signal and the On-Balance-Volume line is trending up confirming the price up trend. An up sloping OBV line indicates that the volume is heavier on up days and lighter on down days and buying pressure is exceeding selling pressure. This indicates that that price up trend in insurance stocks can be sustained.
In this video you will discover how selling monthly option premium against insurance stocks can provide a high rate of return with low risk.
Insurance ETF Price Chart
FUTURES AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.
PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.