6/7 Getting a Little Worried out There. Time to Start Shopping for Deals.

Written on June 7, 2010

Greetings-

It is going to be lonely, but the water will be very nice.

A lot of risk is priced into the market. Friday it seemed that the sky was falling and the world was ending…probably not just yet.

German and other exporters are going to like a lower Euro if they don’t love it. Inflation is nobody’s problem just now.

As Elmer Fudd would say…

Wise Wules from Wizard Wawen…

Rule # 1: don't lose money

Rule # 2: don't forget Rule No 1

Rule # 3: don't get into debt

Pick your favorite company, pick a good level and dip your toe in. Sell a put option or put in a bid. And enter a tight stop loss order if your bid gets hit. For example, GRMN (P/E at 9, 4.71% yield, trading at 32)…the July 27 puts at 0.60, put me in the stock at 26.40, down 17.5% on July 16^th or I earn 1.5% for the month and the stock does not get put to me. And, 1.5% is a little better than my savings account offers for a year, how about yours?

Wemember the wules,

Leon