Trading tech stocks priced at $100 or more, for a nice gain

How Smaller Investors Can Profit in Expensive Stocks
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How Smaller Investors Can Profit in Expensive Stocks

This stock rallied [recently] after the data-analytics-software company posted better-than-expected results for the fiscal third quarter ended Oct. 31.

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Many of the biggest names in technology have been among the biggest winners in the stock market. And, unlike previous bull markets, the winners are not splitting their stock to keep the price within the reach of the small investor. There are now more than 500 different stocks trading with triple digit prices.

A small investor faces a difficult choice for these stocks. They could ignore them, or they could buy a few shares and be unable to diversify their portfolio. Neither choice is optimal, but many investors ignore the high-priced stocks knowing that they should consider them but lack the resources to do so.

We share the details of an actual trade based on recent market data that uses an options strategy to potentially generate high returns while limiting risk, and as we explain in our latest article, this trade could deliver a gain of more than 20%.

Risk is limited and known in precise terms as the position is opened. In this case, the risk is limited to about the price of three shares of the stock even though the trade provides exposure to 100 shares. This is a short term trading opportunity that will be open for about one month so this strategy could possibly be repeated several times a year to generate significant amounts of income. We have all of the details of the strategy and the specific trade in our latest free educational article that is available to you all right here.
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