When markets rise as they have been this week, most stocks are dragged along with the market. Selling puts with stocks rising so quickly is often difficult for investors who feel that stocks may come back down quickly and leave their positions in the money and at risk of assignment. Many investors prefer to sell puts against ETFs as in a rising market they tend not to rise as quickly or as far. Here are the ETFs I am considering for Friday to continue to generate income with stocks rising so quickly.
While I tend to not trade within many ETFs, these ETFs I have traded many times in the past, particularly when I know that the sector they represent is oversold, such as the XLU ETF was just last week on August 8 when I sent out a trade alert. I sold naked puts and bought shares.
Here are 5 ETFs to consider. Please review the summary notes as well which discuss some other aspects of trading in these ETFs.
5 ETF Trade Ideas For August 22 2014
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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