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Investing with Common Cents

My Investment Strategy and Holdings

The stock market can be a very difficult place to navigate and as an individual investor an almost impossible  place to make money. My strategy in the market is to attempt to identify undervalued or oversold stocks and find ways to capitalize on them.

My primary method of generating a return is by selling naked put options on equities that I would not mind owning. I also sell call options on positions that I currently have at prices that I would not mind selling at.

Predicting market direction is a job I feel is best left to day traders and professionals and is not something that individual investors (especially those managing their money on the side) should be worried about. Selling naked put options at strike prices that seem to present good value is a strategy that can generate substantiation returns. 

One of the many benefits of selling naked put/call options is the premium that is received for selling option. All put/call option sellers are paid a premium for taking on the responsibility/obligation of potentially buying/selling 'X' number shares at or before expiration of the option contract. This premium can then be used to further off-set your final purchase/sale price of your equity position.

This strategy will never allow you to hit a home-run in returns, but it will provide you with consistent and steady base hits that will provide a very viable income stream.

Every week I post my recent trades and transactions on the 'Recent Trades' page. Refer to that page for more real time examples
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