Before you make a single high-yield investment, you must read this.
The Phillies smoked the Yankees 6-1 in Game 1 of the World Series last night. But it doesn’t matter if you’re a New York or Philly fan (or even if you like baseball at all), we know you’re a fan of making money. So we’ve put together seven home run options trades for you.Peter Lynch had his “take a walk down Main Street” style of investing, so we’ll call this the “take me out to the ball game” approach to trading.
We’re going to give you seven options trades that we think will knock it out of the park. So if you’re ready to score big, keep reading.
Before you make a single high-yield investment, you must read this.
Home Run Trade #1: ResMed (RMD) Calls
By Michael Shulman
New York and Philadelphia have some of the most hardcore fans in Major League Baseball. These fans don’t just get excited about a game as big as
the World Series, they get stressed out. Stress isn’t good for anyone’s health, and neither are the hot dogs New York fans will gorge themselves on,
or the cheese steaks the Philadelphia fans will wolf down. Plus, fans in both cities are going to be washing that heart-attack-waiting-to-happen chow
down with too much beer, and likely never fully digest it before they pass out this evening. No doubt many of them will be suffering from sleep apnea.
This leads me to ResMed (), the leader in sleep apnea diagnostics
and treatment. It’s a great company, and a great stock with a great chart. Look at long-term calls — they will help you sleep well through the night.
Before you make a single high-yield investment, you must read this.
Home Run Trade #2: CenturyTel (CTL) Calls
By Nick Atkeson and Andrew Houghton
Unfortunately, most of us can’t attend the World Series in person. What some of us do is get our scores in real time over the phone. The World Series
is becoming more data centric, real time and wireless like almost all other aspects of our modern lives, and telecommunications company CenturyTel
() is an enabler of this trend. CTL, which provides voice and data services
operating in 22 states, is benefiting from long-term secular trends, and has yet to be fully recognized by the market.
What is interesting about CTL is its 8.45% dividend yield, which is higher than its bond yields by a substantial margin. Additionally, the p/e multiple
is about 10 times versus the overall market at about 19 times. The 8.45% dividend yield gives you a sure base hit. And if you buy calls on CTL, you
could be looking at a home run.
Learn .
Before you make a single high-yield investment, you must read this.
Home Run Trade #3: PNC Financial Services (PNC) Calls
By Chris Johnson and Jon Lewis
The Pittsburgh Pirates may not be putting much on the field these days, but Pittsburgh-based PNC Financial Services () has
jockeyed itself into a lead position in the financial recovery.
Since hitting its lows in March, at just below $20, PNC is up about 150% at its current price around $50. We think that the stock will continue
to lead the financials higher as its strong balance sheet and diversified revenue fuel a considerable rally.
We’re eyeing the $70 level as a target over the next six months, so look at buying call options on PNC.
Don’t gamble away your profits.
Before you make a single high-yield investment, you must read this.
Home Run Trade #4: Sonosite Inc. (SONO) Calls
By Michael Shulman
The Yankees are led by a core of four men — Derek Jeter, Andy Pettitte, Jorge Posada and Mariano Rivera — who all came to the club in 1995. They’re
no spring chickens, that’s for sure. Thankfully, the players are supported by a great organization, which includes top-notch medical care, oftentimes
right there in the clubhouse, which is equipped with X-ray and sonogram equipment.
Sonosite Inc. () is a maker of very small but advanced sonogram
equipment, and is a leader in its field. The stock is taking a pause, but consider it the pause that refreshes. SONO will benefit from the growing
concern over health care costs, as they are a better and less expensive alternative to traditional sonograms. The stock should be a winner in up or
down markets, so buy longer-term calls or .
Before you make a single high-yield investment, you must read this.
Home Run Trade #5: Archer Daniels Midland (ADM) Calls
By Nick Atkeson and Andrew Houghton
When Americans go to the ball park to watch the World Series, we eat hot dogs. It’s a tradition. It is also representative of a developed economy
to eat lots of protein. China is a developing economy with 22% of the world’s population. And 1.3 billion Chinese people are developing an appetite
for more protein, just as the people of almost all industrialized countries have. To make meat, you need grain. What China doesn’t have is a lot of
land and water for growing grain.
China will need to import huge amounts of grain to satisfy the steadily rising demand. Worldwide grain inventories are currently at low levels.
To satisfy demand, grain producers will have to go into overdrive. Archer Daniels Midland () is
engaged in procuring, transporting, storing, processing and merchandising agricultural commodities. A large portion of their business comes from their
grain storage and transportation network. Without ADM, the Chinese will not be able to enjoy a dog at the park.
Before you make a single high-yield investment, you must read this.
Home Run Trade #6: Progressive Corp. (PGR) Calls
By Chris Johnson and Jon Lewis
Voted MLB’s best ballpark in 2008, Cleveland’s Progressive Field boasts the name of Ohio-based Progressive Corp. ().
Drawn down by the financial crisis and credit freeze of 2008, PGR fell to $10 per share. Now trading around $16, we consider the stock a bullish
candidate given its fundamental strength and the fact that 82% of the analyst community ranks this stock as a “hold.” We think the analysts will wake
up and start upgrading the stock, driving buyers back into the insurer.
We think the stock will move another 20% higher over the next six months toward the $20 level, so consider buying some call options on PGR.
See the .
Before you make a single high-yield investment, you must read this.
Home Run Trade #7: AT&T (T) Puts
By Chris Johnson and Jon Lewis
After starting as Pacific Bell Park, then SBC Park and, finally, AT&T Park, the San Francisco Giants’ ballpark somewhat resembles its namesake
given all of the merger activity and name changes. Unfortunately, AT&T’s () performance
has been like the Giants — trying hard, but just not getting where they want to be.
The communication “giant” has struggled to keep up with the market as other companies and changes in the environment threaten T. We still see some
optimism toward the stock, indicating that the short-to-intermediate-term outlook will have some challenges. Given this, our outlook suggests that
T may move back toward the $20 level over the next six months, making it a good candidate for put options.
Learn .
The Secret to Money-Doubling Trades They Don’t Want You to Know
Professional traders Nick Atkeson and Andrew Houghton reveal their proven, time-tested strategy to finding money-doubling trades
in a new report. It’s the trading “secret” so effective they were banned from sharing it with you — .
