An Options Strategy for Believers

The following is an excerpt from James Altucher's Internet Review newsletter, originally sent to subscribers on March 27 at 9:52 a.m. EST. For more information on this newsletter and for a free trial, click here.

This week I'd like to revisit a strategy I consider very effective when investing in value stocks (I consider most of the stocks in the Internet Review portfolio value stocks in a growth industry -- the best of both worlds).

We're in many of the stocks in the Internet Review for the long haul. But wouldn't it be nice to generate some income on them in the meantime? We can do that by selling put options on select positions.

If the stock price falls below the options' strike price, you get "put" more shares (meaning you're obligated to purchase them), but at attractively low prices. That's not a bad proposition, because we like these stocks, right? ...