The Money Tree

Safely Generating Income in Retirement

Archive for January 23rd, 2011

Deep OTM NP Strategy – FEB Week 4

Posted by mounddweller on January 23, 2011

Fellow Traders,

As promised here are the selections for FEB Week 4 of our Deep OTM NP Strategy.  This week we have 20 stocks that meet our criteria (17.5% DSP and PF >= 2.0).   There are no large-cap stocks in our list.   There are 4 mid-caps and 16 small-caps.

As you can see our list contains several repeats from last month.  These include LKD, MBI, ALJ, VRGY, and ZLC.  In looking through the list none of the selections jump out at me as being great individual trades.  However, that is part of the beauty of this strategy.  There is safety in numbers.  It would be hard to pick out the one or two that are destined to finish ITM and thus avoid them.  By allocating capital across all of them we greatly reduce the risk of being wrong and picking losers.

Best of luck in your upcoming trades.

Regards,

Troy

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