The Money Tree

Safely Generating Income in Retirement

Weekly NP Strategy – NOV 25 Expiration

Posted by mounddweller on November 17, 2011

Fellow Traders,

Our selection criteria this week produced a list of 117 possible trades.  Of these I found three that I like.

AA has appeared on our weekly list previously.  I like it at $9.  AA has a 52-wk hi/low range of $18.47 to $8.45.  While it went substantially lower during the 2008/9 financial crisis I think we’re not going to get back to those levels in the next week.

Next up is MRVL.  Today it announced that flooding in Thailand had hurt demand for its hard-drive controllers.  Consequently the stock sold off even harder than the overall market.  MRVL was down over 6% today.  Like AA, MRVL it trading much closer to its 52-wk low ($11.23) than it is its 52-wk high ($22.01).  MRVL has a rock solid balance sheet.  It has $3.96/share in cash and ZERO debt.  The $12 strike looks like a good NP trade.

Last we have Silver Wheaton (SLW).  SLW has appeared on our list many times.  It is rather volatile.  However, the $28 strike seems like a good bet to me.  The $28 strike is about 10% above its 52-wk low of $25.84.

I have posted the spreadsheet containing the entire list of possible trades out on the Weekly Options group board.  You can find it here: http://finance.groups.yahoo.com/group/weeklyoptions/files/.

Regards,

Troy

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