Chasing Value: Favorite trades -- BHP Billiton

Filed under: Options, BHP Billiton Ltd ADR (BHP), Anglo Amer ADR (AAUK), Stocks to Buy

This is a continuation of a theme I have been writing about this year involving stock options referred to as naked puts.

This allows investors to take a position in a stock, most often below its current price, but depending on market sentiment. That sentiment remains relatively negative so the spreads are attractive.

I have been following BHP Billiton Ltd ADR (NYSE: BHP) the largest mining company in the world, with headquarters in Australia, for a while but I do not own the stock today. I view all mining companies as an opportunity because I think the diversified raw materials they control are the best hedge against inflation. I do not think inflation is imminent, but with the extreme increases in money supply and debt being created I do not think it will be avoidable a few years out.

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Chasing Value: Favorite trades -- BHP Billiton originally appeared on BloggingStocks on Tue, 30 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

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