Thanks for the info from both of your posts, I couldn't agree more. All my current positions (XYLN, CUBE, PMSI, ANET, CHRI, ASPX, PERI) are "fallen angels", or previous momentum stocks with excellent balance sheets that are growing revenues at well over 20%. I think CUBE is my only mid-cap stock, depending on who's definition is used. I bought on maximum weakness, sold covered calls on strength, then bought back options on weakness when time was running out, then sold again further out. Needless to say, this has been a very good year for my portfolio. So much for listening to analysts!!! I can't believe how well this strategy works. I found PMSI accidently about a month ago, loaded up the truck, and already sold the calls for a 25% premium. Incidentely, unless we fail to break key resistance at 8300 on the DOW and crash 20%+ within 8 weeks, PMSI should do very nicely over the next 2 to 3 months. The thing I like best is it is fairly well followed by analysts, something I have found is VERY IMPORTANT with an undervalued stock. You wouldn't know it by the activity level on this thread though!!!!
Happy Trading and be careful!
Al
p.s. don't forget, you can sell covered calls anytime if the market looks scary as a hedge to losing your rear end, buy back options if it moves up, then sell again at higher strike. Protect yourself and make good money to boot!!!!! |
