For those of you who do not feel comfortable enough trading the Spyders (SPY) because of the volatility, I am going to offer an alternative with a list of stocks that should out pace the markets either to the upside or the downside.
The basis of which ones to look into will be solely based on the current equity market outlook, which at this time is bearish.
Below is a list of stocks that can either be sold short or puts bought on the stock.
Currently, with three weeks until option expiration, going out to November is still a safe play.
There is some homework on your part with these stocks as you will have to bring a chart up and determine which one or ones offer the best risk reward ratio. Personally I trade the entire basket, but as I have stated in the past, I am very aggressive and that simply might not be your cup of tea.
Ryland Group (RYL) 28 3/8
Anworth Asset Management (ANH) 6 7/8
Biovail (BVF) 19 3/4
Commerce Bancshares (CBSH) 47 1/16
Church & Dwight (CHD) 47 5/8 My Personal Favorite!
Innovative Solutions & Support (ISSC) 20 3/8
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