Bill, I can't find them either, so I'll just cover the concept in a summary. This is the safety/income version. There is also a growth and income version, which I'm not playing right now. This one is more safety first.
1. Buy the stock of a company with solid finances (in this environment, mainly, no huge debt), with products that are in demand and with a dividend yield greater than 10 year Treasury rates. Some I am currently watching are ADI, ADP, PEP, KO, LLY, ECA, BHP, UPS and RTP.
2. Buy the stock on a down day. That's the reason I haven't jumped on any of these, as they have been doing well since I wrote the note about re-opening this portfolio. No cause and effect there. <G>
3. Sell a Leap Option as deep in the money as possible. At the moneys and out of the moneys are for growth and income.
An example will follow in the next note. |
