Rocky’s Weekly Stock Picks
This week we’ve been focused on minerals and oil. Oil futures options seem like a no-brainer, but we need $25,000 for access to future/margin for futures and a place to store our oil. RDP Arkenstone is looking into direct participation as an option.
But this isn’t weekly asset picks, it’s weekly stock picks. Buy physical silver.
UEC - $3.72/share. Get it now while this stock is still cheap. Sell the $4 Put to get the shares for a discount. This stock sort of just hovers around $3.50. That hasn’t always been the case, but the history has been generally stable. Additionally, share price appears unaffected by general market conditions.
A play we recommend would be to write 10 puts at $4. That’s $3500 up front. If the price jumps over $4 by months’ end, we’ll have made 12.5% return. If, however, we get assigned and changed our minds, we could sell back the shares, theoretically at a profit. $22x10 = $220, at a 6.28% rate of return.
Alternately we could might write $3.50 calls with the $0.45 premium, for a cost-basis of $3050.AG - $12.67 First Majestic is a silver company. This is not an ETF, but instead, they own minerals rights and mining operations, etc. This means if an event occurs in which silver derivatives become worthless, AG maintains its value. Options trade weekly, as well. There is a dividend…it exists.
CGAU - $7.50 Nice and stable. This is pretty similar to AG, except that it’s gold. Not only gold, however, but also copper operations. The dividend is slightly more impactful here, at 2.95%.
Options trade monthly, and have a $2.50 strike difference.STAG - Industrial REIT. $43.53 a share 3.3% dividend, paid monthly. It’s a solid REIT with a safe return.
ALX - At $278+ a share, this could take the beginner on a budget a few weeks to afford. Try to afford it by Friday, its ex-div is 11/5. At 6.38% annually, that translates to $18. Per share.
Though a REIT, this pays quarterly. Just residential real estate. They’ve been doing it for something like 70 years.
