3 Trades That Could Double Your Money by Christmas: LF, EBIX, STKL

While undervalued stocks can do well in bull or bear markets, it is especially important to consider the potential risks in a bear market. For now, we don't know if a bear market is beginning, but we do know that nervousness seems to be the dominant trend in the markets. Words from the Federal Reserve can send the Dow Jones Industrial Average down by hundreds of points in a day, so risk needs to be the primary consideration in investment decisions.

Risk can be controlled in a number of ways. One approach is to invest only a small amount of money. By using call options, risk is limited to the amount paid for the option and it is possible to buy calls at very cheap prices. Yet the gains can be substantial.

Looking for potential winners, we found three stocks trading with PEG ratios less than 1 and with options that could rise in value before the end of the year.

The PEG ratio compares the price-to-earnings (P/E) ratio of a company to its earnings growth rate. Companies that are growing earnings faster than average should be trading with P/E ratios that are higher than average. Slow-growing companies should have below-average P/E ratios.  (more)

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