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06:11PM (15 mins delay)
Oct 16, 2009 - 5:49 AM EDT
Marco Hickey submits:In a previous OptionMaestro.com post, I outlined 25 stocks which I wouldn't mind going long at these levels. I wrote about getting long the stocks by using the buy-write option strategy. This is an updated post to that one, adjusting the strikes and prices accordingly for options expiration today. It is very important to write the shares out as early as possible as volatility rushes into the market in the morning, and not wait for it to start decreasing rapidly in the afternoon. It's not too late to get premium out of many of these stocks, and writing them for just a day decreases risk greatly. I will look to be purchasing some of the stocks mentioned below pre-market to write out at opening bell. As I've stated, I don't mind holding any of these stocks long which is why I'll be using this strategy today. If I get called out I won't mind because I'll still make money. Below is the list of stocks, the potential return if exercised, and protection if they do not get exercised. To learn more about the buy/write option strategy, risks, pricing, calculations, other strategies, and options in general, click here.
Note that higher beta securities return higher percentages due to their levels of implied volatility, and because they are riskier.
Source: Seeking Alpha (Oct 16, 2009 - 5:49 AM EDT)
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