If you have a stock that you have already made some gains in and you want to protect the gains, but still think it has room to go higher, then there are only a few alternatives. If you own the stock or ETF, then you ca kind of limited in your choices.
If you have employed Hidden Money Method#1, then you already have reduced risk. If you are still nervous and want to reduce your risk from say 20% to 10% then this would be considered the roll up. This is part of diversity that the Hidden Money Methods offer to investors…flexibility.
Here’s an example in Schlumberger N.V., stock symbol SLB.
If we entered the stock when it fell in October, then we could have expected to pay $55 at the very low or $15 for the Hidden Money Method.
In December when the stock had already spent a lot of time around $80 and has now fallen back off to $65, you could have decided to lock in profit which would have been around $10 for both the stock and for the Hidden Money Method. Except if you wanted to stay in for the upside of the stock, you would not be able to sell. The Hidden Money Method Roll up allows you to cut your risk to just to only $10 and roll your position up. The most you would be risking would be the $10. This would lock in profit and you would never have a loss in this position(except for transaction costs.)
It is a very powerful method and once employed can always be modified to adjust for news that comes out.
