Tag - Small Caps

As an options trader I am often asked about my favorite options strategy for producing income. And recently, after working with Ian Wyatt on an issue for SmallCap Investor Daily, "What You Need to Know Before Using Options on Small Cap Stocks," I have been bombarded with questions from small cap investors about how to trade small cap stocks for income using options.

In my opinion, the best way to bring in income from options on a regular basis is by selling vertical spreads, otherwise known as credit spreads. 

Today, I would like to introduce to you a valuable indicator that comes from the options world and what it is telling us about the future for small cap stocks.

More than likely, you've heard its name on CNBC, Bloomberg or read about it in the Wall Street Journal or Financial Times. The indicator is the well-known and popular VIX.

I keep hearing about copper's potential "death cross" and the negative impact the cross would have on the market.

Really? Does copper truly have the predictive power that Wall Street analysts' are hyping? Or is the "death cross" in copper just another useless indicator much like the Hindenburg Omen?

The fear around nuclear energy is palpable.

The catastrophic events in Japan on March 11 have put a damper on the momentum of what was fast becoming a nuclear renaissance. For the past several years, nuclear proponents promoted nuclear energy as a clean, efficient, reliable and safe alternative to dirty fossil fuels - and the world agreed.

Did you know that Krispy Kreme Doughnuts (NYSE: KKD) just reported its first profitable year since 2004? Do you care? Well, you should.

A number of years ago, the Winston-Salem based doughnut maker went from growth darling to near oblivion. But, after a few major changes the company seems to be moving in the right direction and could once again gain the adoration of investors.

I’ve heard many people on Wall Street state that silver IS the market right now.

The metal entered the year around $30 an ounce having climbed sharply in 2010. The surge in silver prices continued through the first four months of the year, only to fall off a cliff after the first trading day of May.

If you asked my wife or my employees what kind of investor I am, they'd probably tell you that I'm a growth-oriented value investor.

I made my bones as an analyst over the past 12 years by focusing on small-cap companies for that very reason; I enjoy doing in-depth research of undiscovered, small companies with the potential for significant capital gains.

I rarely, if ever, discuss options in the Small Cap Investor Daily.

However, the number of questions from readers has recently picked up regarding this fast growing investment approach. And I have research analyst Andy Crowder on our team - he has over a decade of experience trading options and publishing his strategies for a select group of subscribers.

So I've decided to set some time aside to discuss options and how to use them appropriately with small cap stocks. Hopefully this will help you begin to understand that options offer endless possibilities to increase your returns in an up, down or range-bound market.

Yesterday in "Google, But for Finding Great Stocks", I discussed the value of stock screeners as a powerful tool to find potentially great stocks.

I went through an example using one of the best free stock screeners on the internet FINViz.com and came up with two potentially great small cap stocks; MIND C.T.I. (Nasdaq:MNDO) and Commtouch Software (Nasdaq: CTCH).

Right now, about 58 million Americans suffer from the most common form of skin pre-cancer - Actinic Kerotosis (AK). I say pre-cancer because with the right treatment, this relatively common skin condition can be prevented.

But, if not treated properly there is a possibility that the condition could get a lot worse - it could even become life threatening.

It is not my place to give you advice on which medical treatments you should choose for particular illnesses and conditions - I am not a doctor. However, I do specialize in finding opportunities to invest in small cap growth companies that have the opportunity to make significant returns.

There are only three letters that investors need to know to be able to find stocks that have the potential for big gains.

Those letters are P, E, and G. Combine these and you get PEG, an acronym for the most simple and powerful stock analysis metric for identifying growth stocks today.

When it comes to finding crude oil, the saying that it's just as good to be lucky as good often proves true. The latest technology and most experienced exploration team will get close to the oil, but to put a drill directly into an oil elephant requires a lot of good fortune as well.

Lately, one company has been both lucky and good. And the stock is performing exceptionally well in these days of $100 a barrel oil.

Last week, my esteemed colleague Tyler Laundon asked the question, “Is a Correction Coming?”

In his eloquently written article he briefly pondered the question, “…will the big money sell in May?" Obviously, he was alluding to the old Wall Street adage that always surfaces this time of year, 'sell in May and go away', or what some on Wall Street call the summer doldrums.

The small cap Russell raced higher last month to end what was the best first quarter in years. During that time several stocks have hit 52-week highs particularly over the past few weeks.

Small caps pushed higher gain today and here are the top three small cap stocks that benefitted from the rise.

I ran a quick screen on the 5 best performing small cap BRIC stocks YTD. It is no surprise to find that tech stocks dominate the list. I think you will find a few gems that have the potential to be quite prosperous. I will actually delve further into a couple of these stocks next week. Check it out!