Wheee - this is getting to be fun!
I spend most of my time with members preaching LOW-risk strategies so it's fun to look at a riskier one once in a while. If the market is trending higher then we may have an opportunity to make a nice, fat return and we've already locked in a conservative set with a lot of cash on the side so we're able to consider taking a little gamble now.
While we still have a nice, fat VIX at 30, let's look UP for a change and think of some small, fun plays we can take that give us great expectations for the end of the year. As I mentioned the other day, putting just 10% of your virtual portfolio into a risky play that makes 500% to the upside can be a real virtual portfolio booster. The trick here is to select trades that either limit our downside or have downsides we don't mind (like having a stock put to us that we don't mind owning).
I thought it would be fun to set up a small, virtual portfolio with a few selections we think can provide big returns by January expirations. Keep in mind that these are, of course, high-risk positions and should not be more than 1/10th of a virtual portfolio so if you have $10,000, just $1,000 should go into risky posiitons like this. If all goes well, you still make 50% on the whole $10,000 so DON'T BE GREEDY! We'll track this set of picks going forward and make adjustments, if needed along the way.
Let's start with a stock. As you know, I am NO fan of penny stocks. I pretty much avoid them like the plague but there's a stock that costs just 21 pennies I've decided I like and that's YRCW.
