It’s rough out there, but there’s still much money to be made.
Here’s where to look this week…
One group of stocks that has been hit harder than most is biotechs, due to past profits being cashed out and the speculative nature of many stocks in the sector.
Rather than pick a winner, pick the sector and sell calls on the IBB itself; the formal description is the iShares NASDAQ Biotechnology ETF (IBB).
You have to believe that, in the long run, this is something to own if the market turns against you… but if it doesn’t, well, you’re looking at annualized profits near 100%.
How to do it?
Buy the ETF and sell the call for this week, January Week Four, expiring January 22.
Which call? The next strike up.
You’re looking at simple, incredible profits if you’re called out, and a discount to the current market price for the IBB if you’re not called out.
And if you’re not called out, sell another call next week. And the week after. And the week after that…
This post originally appeared on mainstreetinvestor.com.
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