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World's Dumbest Market -- Low Risk, High Reward

There has been little time to write lately because I have been wheeling and dealing in my investment world. However, I thought I would share one of the trades I did this week that seems like free money to me, and although the opportunity has faded a little I might do it again and you might want to examine this trade, too.

At the market open on Tuesday March 9, a good-til-canceled order filled -- selling to open Citigroup Inc. (C) January 2012 'puts' at a strike price of $7.50 -- paying $4.05. This transaction is commonly called a "naked put". The return on investment is 59% over the remaining 22-month period.

This is nuts because my break even position is $3.45 -- 20 cents a share less than it was the time of the trade and 60 cents less than the $4.05 (ironic isn't it) Citigroup is trading at now, as I type away.

Continue reading World's Dumbest Market -- Low Risk, High Reward

Three growth favorites in alternative energy

"To say that alternative energies are critical is a severe understatement." asserts Stephen Leeb, who looks at three plays in the sector that earn a spot in his Growth Portfolio.

The editor of The Complete Investor explains, "Readily scalable energy sources such as solar and wind account for under 1%. It's time to get serious."

Three of the stocks he has selected are holdings in his model Growth Portfolio: FPL Group (NYSE: FPL), Exelon (NYSE: EXC), and General Electric (NYSE: GE). Here's a trio of favorites.

"We have focused on those alternative energy stocks with the strongest growth profiles. None is a pie in the sky fantasy; all provide energy in the here and now and have significant and fast-growing revenue streams.

"The fact that their growth should continue to burgeon is one of the most heartening pieces of news on the energy front. We could argue that investing in these stocks not only will be good for your portfolio but is an act of patriotism as well.

Continue reading Three growth favorites in alternative energy

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 08:19 AM

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