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September 18, 2011
Edited: September 18, 2011
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"There's always a bull market somewhere " Jim Cramer
The market is still way below it's May highs. However, these three niche areas have been very strong and continue to allow one a winning portfolio.
1. Writing Put Options
The market volatility with the Vix over 30 for a period of time has caused option premiums to be high. One can take advantage of down days to write puts (naked or cash-secured) and obtain a nice premium income immediately.
My preference is to write puts on stocks that pay a dividend that I would not mine owing if I was assigned to purchase the stock. One must study the situation carefully. This method is not for everyone. One must be learned in analyzing how options work coupled with knowledge of the historical pattern of the underlying stock. A subscription to 'Robbing the Markets Blind' will allow one to follow this methodolgy.
2. Utility stocks
There has been a bona-fide bull market in utility stocks with their wonderful dividend yield relative to treasuries, bonds, and CD's. Four utilities that have lead the way are:
Southern (SO), Con Edision (ED), the 'duke', Duke Energy (DUK), and Dominion (D).
These four are at their highs or near highs for the year.
3. Apple (aapl)
Even the icon, Steve Jobs, retiring as CEO, has not swayed Apple. Apple recently hit 400 and running on all cylinder.
ps. Watch for the startup of 'Robbing the Markets Blind' in 2012 where specific picks, market analysis and strategy, along with an audit trail of performance, will be provided in addition to near or at real-time alerts availability.
Disclosure : AAPL, SO
