For IRA Investing, Consider Buy-Writes

Tax-sheltered accounts are ideal places to use buy-write combinations. That technique involves buying attractively priced shares while selling covered calls against those same shares. When this is done in low-priced, high-volatility stocks, the rewards can be outstanding.

I wrote recently about the allure of teen retailers such as Aeropostale (ARO) and Abercrombie & Fitch (ANF). They had both already been pummeled after poor earnings reports. Aeropostale in particular got down to a 10-year low on Sept. 4 as traders capitulated and the stock broke below long-term support....225 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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