WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
CHECK OUR TRADES ON OUR FACEBOOK PAGE OR HERE.


Which stock to buy?

Dwarf As I mentioned many times before and it is a part of my strategy, I use 50% of my options trading proceeds and buy dividend growth stocks; dividend aristocrats to be exact.

As Warren Buffett said that he considers diving stocks an investing blessing, every investors who buys stocks to hold them for a long haul must be very happy with current prices of the stock market.

I am really happy about this sell off. Although the portfolio is losing on paper (since the existing holdings are losing value) it is just a temporary state which doesn’t concern me at all.

In fact, my current holdings are still in a positive territory and I am still about 2.5% up for the year. Most of my net-liq drop is caused by my open options positions and since, except about two trades, all are out of the money, I have no troubles with shrank net liq at all.

Now I have a different paradox to solve.

Before, when the stocks were reaching all time highs, investors and I were constantly asking (complaining) which stocks to buy since they were all overvalued (I disagreed with the valuation part). It was hard to choose a stock and buy at a good price.

Now we have an opposite situation.

Almost all stocks except few in my watch list are in a correction mode and thus a good candidate to buy. I made nice money yesterday riding the stock market down to its abyss but not enough to buy all stocks in the watch list.

 
Now, I have to choose.
 

Watch list
 

As of now I am looking at JNJ, OHI, AGNC, and CVX.
 

What do you think? Which of the stocks from the watch list would YOU buy?
 





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