The Money Tree

Safely Generating Income in Retirement

Archive for July 17th, 2011

Deep OTM NP Strategy – AUG Week 5

Posted by mounddweller on July 17, 2011

Fellow Traders,

As is usually the case we have a wide selection of trades to consider in this the first week of the new expiration cycle.   Please also notice that this is one of the 4 times a year when we have a 5-week cycle.  Here is our list of opportunities this week:

As you can see I have highlighted the two opportunities that I think are worthy of your further consideration.  Both IDCC and RVBD have appeared previously in the selection list.  I also have written about them before.  You can read those write-ups here

IDCC: https://troysmoneytree.wordpress.com/2011/05/29/deep-otm-np-strategy-june-week-3/

RVBD: https://troysmoneytree.wordpress.com/2011/02/25/otm-np-strategy-mar-week-3/

Both selections have good support at their respective strike prices.  However, if I had to choose one over the other I would go with IDCC.  It trades at a more reasonable P/E and pays a small dividend.  If the market hits a rough patch and I were to have IDCC put to me I would feel more comfortable than I would with RVBD which trades at a very rich forward multiple of 33x earnings.

Have a great week!

Regards,

Troy

 

 

 

 

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