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Archive for April 2nd, 2011

Deep OTM NP Strategy – APR Week 2

Posted by mounddweller on April 2, 2011

Fellow Traders,

Here are the trades that meet our selection criteria with two weeks left until April expiration.


There are some interesting companies in this list.  All are small caps.  Two in particular garnered a bit more of my attention, Apogee Enterprises (APOG) and Enernoc (ENOC).  Apogee is interesting in that it isn’t everyday that you find a small-cap stock that pays a dividend with a dividend yield of 2.5%.  However, for an NP trade I think ENOC is the better choice.   It offers twice as much ROIC with a similar level of DSP.  The placement of the strike price and the current stock relative to the 52-wk low is attractive.  The 52-wk low of $16.63 was hit back on February 14th.    Since then it has bounced back closing Friday at $19.04.  The strike price is $15.  ENOC has also a much better balance sheet.  It has over $6/share in net cash.

Have a great week!



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