Sell Put Options
Sell put options on high quality stocks that are out of favor:
- Large cap stocks with proven earnings (preferably from S&P500 index)
- Low debt relative to cash and earnings
- Not with potentially obsolete product or service
- Low P/E
- Stock under-performed due to a temporary negative event or news
News Corp (NASDAQ:NWSA)
Recent negative news about company related to its tabloid in UK.
Gold Miners Index (NYSEARCA:GDX)
Hedge against currency devaluation risk?
High quality earnings (license fees)
Bank of America (NYSE:BAC)
July 2011 Ideas (5 out of 7 profitable; 2 unclosed)
Brazil ETF (NYSEARCA:EWZ)
Low PE & High yield
Junk Bond ETF (NYSEARCA:JNK)
Growing business & stock selling at < 8 PE?