Diversification, there is none to be found here. I don’t have the time or energy to follow multiple stocks. So my strategy is to pick a stock that I’m comfortable owning if it gets “put” to me until it has time to recover to a profitable level. I’m looking for a stock that has a long smooth history.. Here is a 10 year monthly chart of the underlying that I am using:
That’s right Visa. This strategy has returned my primary account more than 30% year to date. My goal is .05% a day and I’m usually able to surpass that. My strike prices are well off the current price, so I will have time to sidestep the next major downturn when it happens.
Disclaimer: Single stock diversification is no diversification and contains significant risk, don’t try this at home without the advise of a professional financial advisor.