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Bargain stocks in the wake of an overvalued general market

|Includes: AMAT, ProShares Short Dow 30 ETF (DOG), INTC

If you are searching for sotcks that had the least run relative to the rapid rise in the DOW Jones Index, consider the following:

1.  AMAT:  Shares remain depressed while implied option volatility indicate that shares will remain stable.  This is a good opportunity to buy shares and write calls against them to pocket a monthly premium.  I recommend the Nov strike 13 calls against the underlying shares.

2.  INTC:  While shares have surged from a one year support of 15.10, CEO Otollini has been very upbeat on Company's guidance.  They have exceeded the most conservative analyst forecast in earnings and 4th quarter guidance.  Shares are a buy at these levels.  I recommend writing Nov strike 20 calls as a hedge against the underlying shares.

3.  DOG; this is a very good index which shorts the DOW Jones.  You can buy shares and hedge them with Nov strike 55 calls.  This index is a perfect way to hedge your entire portfolio if you want ot safeguard long positions.


Disclaimer: MD CApital Management owns DOG, INTC, and AMAT