The Money Tree

Safely Generating Income in Retirement

Weekly NP Strategy – DEC 9 Exp

Posted by mounddweller on December 1, 2011

Fellow Traders,

This week our Weekly NP Strategy returned 87 possible trades.  Of these I found 3 worthy of your further consideration.  They are AA at the $9 strike and CREE at the $22 or $23 strike.  Those of you who would like to look through the entire list can find it here:

I don’t need to say much about the AA trade.  AA has consistently shown up in our selection results from day one of starting this strategy.  AA closed today at $9.81.  The $9 put has a bid price of $0.06 giving us a ROIC of 0.67% (before commissions).  In the past three months AA has bounced back twice when it got just below $9.  On October 3 it closed at $8.90 and on November 23 it closed at $8.88.  AA was one of my recommended trades that week and if you followed that recommendation you more than likely would have had AA put to you.  However, you could have easily sold it for a profit the following week.

Next up is CREE.  I like CREE at both the $22 and $23 strike prices.  CREE hit its 52-wk low of $23.03 back on October 3.  Since then it has rebounded, closing today at $24.83.  The ROIC (before commissions) is 0.55% and 1.13% at the $22 and $23 strikes respectively.  CREE has a rock-solid balance sheet.  It has $5.48/share in cash in the bank and ZERO debt.

Best of luck to everyone in their trades and happy holidays.



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