In the quest for yield, options traders often have the advantage: they can sell options and generate income. But with the VIX so low, finding suitable options to sell can be tricky. Brian Stutland of Stutland Equities thinks he's found three names that look attractive for put sales.
Now, when investors sell naked puts, they are willing to buy stock at the put option's strike price in exchange for collecting the price of the option. “When you’re looking at selling a put, you should be comfortable owning the stock and there should be some support behind,” says Stutland.
The three names Brian is looking at?
Vale, Microsoft and Suncor.