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3 Options Trades You'll Get Paid to Make

Bryan Perry, August 12, 2009 Free Trading Guides

Buy-Write -- American Express (AXP)

American Express stock, AXP
Before you make a single high-yield investment, you must read this.

Financial stocks have outpaced every other sector in the latest move up for the S&P 500 (SPX). American Express (AXP) is one of the leaders in the latest rally for financial stocks. The stock enjoyed a technical breakout at $30 and has since rallied up to $34, where there is some serious overhead technical resistance that comes into play.

One of the ways investors can stay on a bull train, bring in some extra income and hedge their downside at the same time is to employ a buy-write strategy. A buy-write is a covered call strategy where you simultaneously purchase the stock and write the call contract.

Next: Sell AXP Sept 35 Calls (ABZIG)

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