I’ve spent some time this morning trying to find a new trade, but can’t zero in on anything that seems like a good move. I went back to this week’s Barron’s and saw that even the strategists they polled can’t come up with a good consensus of what’s hot and what’s not.
- Six of them say to avoid Consumer Discretionary stocks and three say they favor the same sector.
- Four say to avoid Financials and two favor Financials.
- None of them says to avoid Tech, but a few like it and that’s one I’m not sure of based on that $COMP chart I drew this past weekend.
Here’s the Barron’s article for those interested in seeing the table.
Once I think I am getting close this market throws me a curveball like on Joy Global (JOYG). JOYG beat earnings and forcast a good future, but is down 7% 19% today and was down more. I can only assume it’s the global slowdown that’s scaring investors, but that a crazy drop after they beat earnings. I’ll stay on the hunt as I feel I’m getting my head back in the game again. AAPL is one I’m getting close to that might be worth selling a well out of the money naked put. I’m trying to pick my entry point still. TTEK was highlighted in the same Barron’s and sounds like a good play, but the premiums don’t work out for me to sell based on risk/reward. I’ll keep looking for new picks and as always I welcome input from all of you who see something I’m missing.
With TWM at $66.33 I’m itchin’ to sell October $62 Puts for $2.60. Also like XLE puts here. Just a couple ETF ideas.
I’m still trying to figure out my Put evaluator. Right now, I look for Puts that are at least 10% OTM and pay a put premium of at least 2% on risked capital. I don’t know how that jives with your evaluator.
Anyway, based on this, XLF still pays fat premiums due to volatility. Oct $19 are worth considering.
I’d like XLE more if I wasn’t already in on CHK and USO. I’m deep enough on energy for now. TMW could work, but I see no volume on the contracts near the money through AMTD (TD Ameritrade). That makes me nervous.
This part is i like it.: I’m still trying to figure out my Put evaluator. Right now, I look for Puts that are at least 10% OTM and pay a put premium of at least 2% on risked capital. I don’t know how that jives with your evaluator.