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Deep OTM NP Strategy – NOV Week 1

Posted by mounddweller on November 12, 2011

Fellow Traders,

Below are the selections which meet the criteria for Week 1 of our Deep OTM NP Strategy.  For newer readers and others who may have forgotten let me remind you that our Week 1 criteria is simply NPs with at least 10% down side protection (DSP) and a Put Factor (PF) of at least 2.0 or higher.

As you can see, as is usually the case this late in the monthly expiration calendar, it is pretty slim pickings.  So much so that I couldn’t find a single one that I would be comfortable owning.  What held me back from highlighting any of these as a possible trade is the fact that all of them except SIRI all report earnings this week.

If I had to choose at least one I think I would go with NTAP.  Networking stocks have done relatively well in the 3rd quarter.  Thus, odds would be in our favor that NTAP will at least match earnings expectations.  Also, NTAP has the strongest balance sheet of the stocks on our list.  It has a net cash position (cash net of debt) of $9.36 / share.

Well, that’s all I have to report for this week.  Best of luck to everone in the final week before expiration.

Regards,

Troy

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