S&P 500 Chart – Clinging to Support

4 thoughts on “S&P 500 Chart – Clinging to Support”

1. comments on your post where you asked if we had any recommendations of stocks for you to look at is now closed.

   Just thought I’d give you the name of the stock that I purchased yesterday. The name of the stock is AZZ. It’s a < $0.5b company and started paying a dividend last year. It looks like it has weathered the downturn quite well and things should start picking up for it next year.

   There are options trading on the stock, albeit at a low volume. Personally, I just purchased the stock and will consider selling options on any spike close to $40.

2. Thanks Ronan. I’ll start following it. It looks good at first glance, low P/E compared to its industry, 2.6% forward Div yield and probable support around $36 or so. I might put a limit order in for some in my IRA for a longer term hold. A 35/40 put spread might work too if you think $40 is going to be resistance.

3. I’ve just sold a couple of Covered Calls against my AZZ position. I sold the $40 December Calls for $0.80 each. I’m very happy with the fill considering AZZ was trading at $38.47 at the time. That gives a potential return of over 6% in 4 weeks and reduces my basis per share to $36.90.

   I really didn’t think that this would hit but it just goes to show you that, even if the options are lightly traded, you can get lucky.

4. Nice move Ronan. I think the thinly traded options can give you some better premiums if you are patient and place your limit orders high. If you are the lowest in the wide bid/ask spread then you get the random rookie who just takes what you ask.

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