Looks like we are approaching a time when some good opportunities may start coming, and this is the time to be identifying the scripts to be involved in.
Right now, consider SSYS (Stratasys), a leading 3D printing company. Its price (hitherto in the stratosphere by any metric you may wish to consider) has come down substantially but is still above what a conservative analysis would call as fair value. But if you were to buy it at the present price of 94.58 and write a Jan 15 Call with strike 90 and collect a premium of 17 dollars and change, come Jan 15, you get an exercise of the call which brings you a very solid return, or alternatively if the call doesn't get exercised then you get to own the stock at a very reasonable net price. Given that SSYS is one of the top two market share holders in this area and is vertically integrating itself well with a very good strategy, the second scenario may be better.
Alternatively, a Put with strike 85 for Jan 15 which has a premium of slightly above $10 is also a solid good strategy, although I am not sure that that put will get exercised. So, if one is keen on buying and holding the stock for the long term, may be one should consider a 95 strike put which fetches 15.80. It all depends on how much you would want to own this stock for the long run.
Read also
http://www.fool.com/investing/general/2014/04/13/3-d-printing-authority-reveals-why-they-chose-
stra.aspx
In any case, there is a compelling case to read up on SSYS and examine it more closely.
Once again, this is a market where I don't wish to buy and hold without any hedges.
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