It has a low P/E but more importantly a low P/S ratio and it pays a huge dividend. According to Yahoo the current yield stands at 13.42%. For the record, we are going to move this play from the high-risk category to the lower risk category shortly.
The company has strong sales, and demand remains high.
Hence selling cash-secured puts would be a good bet on this play. One option if funds are limited would be to reduce your holding, and this could be done in one of two ways
1) sell some of your current position and use the funds to sell puts.
2) Purchase deep in the money calls (if you take this route only aim for calls that expire in 2024 and the strike prices should fall in the 5 to 7 dollar ranges.
The disadvantage with both options is that you would miss out on the dividend. so the best option, if you have cash, would be to sell far out of the money puts with a lot of time premium on them, so that the odds of the shares being to your account are low and you get a chance to pocket a hefty premium. However, if the shares happen to be put into your account, then you are most likely going to get in in the screaming buy ranges.
TTD
This is a higher risk candidate, but P/S and P/E continue to drop. When it comes to selling puts, especially for beginners, it is a good idea to find low priced candidates with good financials and that are trading in the oversold ranges. HIMX meets all three requirements.
However, TTD is also growing rapidly, and the above chart clearly indicates that the momentum should last as the P/S ratio continues to drop
CYBE
This is another good candidate, the P/E and P/S is trending down. Revenue is trending upwards
WOLF
Is an interesting candidate.
