Now that the US presidential election is over, we’re still cautious about the overall price levels in the markets but are happy to have some certainty post-election.
Our approach has always been based on value. We try to not overpay for anything.
Typically this is the time of year to get bullish and look for a Xmas rally going into the new year and it appears right now that is exactly what is going on.
Briefly, we saw some value being created while interest rates have risen over the last few weeks. As a result, we have capitalized on that volatility by selling some puts on names like Duke (DUK), AT&T (T), and Verizon (VZ).
We are still long-term bulls on gold and believe our two gold positions serve their purpose, if nothing else than a hedge against some unforeseen event.
We continue to scour the markets daily for opportunities to execute our puts strategy and CVS Healthcare (CVS) is our latest addition as we believe the stock has been oversold.
At levels underneath (Jan $65 puts), we see tremendous value as the stock currently trades at 12.5 x 2017 earnings.
That helped offset the declines in our gold positions.
In our opinion, we’re sitting in a great position for December expiration and have plenty of liquidity available to us if presented with some value opportunities which we constantly look for.
Freedom Capital Advisors is a Registered Investment Adviser and currently manages over $30 million in assets. We specialize in stocks, bonds and options and we engage in a lot of premium selling in managing our strategies, whether it is covered call writing or naked put selling.
Ron McCoy has worked in the financial markets for over 25 years and has seen many of boom times as well as the bust times. His focus is on managing risk and he takes a value approach to investing clients’ money.
He received a Bachelor of Science in business degree from Florida State University in 1986. Prior to founding and becoming a Registered Investment Adviser Representative for Freedom Capital Advisors, Ron held a series 7, 24, and 65 and held various management positions in the brokerage business.