Investors interested in renewable energy can look at, among others, Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI), which invests in solar, wind and other projects and sports a yield above 5%. For speculators, there is a wide variety of choices. There are lots of low-priced energy stocks that trade for under $5, like Vaalco Energy (NYSE: EGY) and Uranium Energy (NYSE: UEC). And, of course, one of the favorite tools of traders: call options. You can find many calls for less than $5, which enables you to control 100 shares of stock for each contract while greatly lowering the amount of capital you have at risk. For example, let's say you were interested in oil giant BP (NYSE: BP), formerly known as British Petroleum. The $105 billion market cap stock trades for around $36, so if you bought 100 shares, it would cost you around $3,600. If you thought BP was going to go on a run in the next few months, you could buy the January $37 calls for $2.56, which would cost you only $256 to control the same 100 shares. If the trade didn't work out, the most you could lose would be $256. But if BP rose to just $41, you'd make a minimum of 56% on your money (likely more if you sold before expiration) in just six months. And if BP climbed to $46, you'd be up a minimum of 251%. The energy sector offers something for every investor. So with apologies to Paul Simon, here's my "50 Ways to Invest in the Energy Sector." - Pick up a stock low, Joe.
- Grab a blue chip, Kip.
- Buy a cheap call, Saul.
Incorporate one or more of these strategies, and you may "just get yourself [financially] free." Good investing, Marc P.S. Should we make it 51? Here's a bonus... Click the button below, Otto... |
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