FLEX Yourself with this Combination Play

The perfect underlying stock for a buy/write combination is low-priced, volatile and cheap enough, valuation-wise, to present only modest risk. Contract manufacturer Flextronics (FLEX) meets all these criteria.

The company is solidly profitable, has a reasonable balance sheet, a low P/E and an above-average beta. FLEX closed Friday at $5.78. That's much closer to its 52-week low of $5.05 than its high of $8.50. The 2010 range was very similar at $4.90 to $8.40. You have well-defined support near current quotes and decent upside on a percentage basis.  ...364 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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