Investors are often told to be patient and wait for the right price. But there may be a way to get paid while doing it.
In the latest episode of Ticker Take on YouTube, I spoke with Chris Thom, a value investor at Moat Financial, about a strategy designed to do exactly that.
His approach blends traditional value investing with options, specifically selling cash-covered puts. The idea is straightforward: identify high-quality companies you would like to own, but only at lower prices. Then, instead of simply waiting, you sell options at those target prices and collect income upfront.
If the stock falls to your desired level, you buy it. If it does not, you keep the premium.
Thom describes it as a more defensive way to approach equity markets, one that focuses on discipline, valuation, and income generation.
At the core of the strategy is selectivity. He looks for businesses with strong and sustainable earnings, attractive valuations, and what investors often call “economic moats,” durable competitive advantages such as strong brands, intellectual property, network effects, or high barriers to entry.
Once those companies are identified, the options market becomes a tool to potentially enhance returns.
Thom says the approach can generate meaningful income, with his firm targeting a double-digit yield by systematically selling out-of-the-money puts on stocks they would be comfortable owning.
With that framework in mind, here are eight stocks he highlighted as candidates for the strategy. This is not financial advice.
Cameco is one of the world’s largest uranium producers, positioned to benefit from renewed interest in nuclear energy. With governments looking for reliable, low-emissions power sources, uranium demand has been strengthening, creating long-term tailwinds for the industry.
Costco has built one of the strongest retail franchises globally, driven by its membership model and consistent value proposition. Its scale, pricing power, and customer loyalty create a durable competitive advantage that has translated into steady growth over time.
Dollarama dominates the Canadian discount retail space, with a proven track record of execution and expansion. Its ability to offer value to consumers, particularly in uncertain economic environments, has supported strong and consistent performance.
General Motors represents a more cyclical opportunity, but one undergoing transformation. Even after investing heavily in electric vehicles and technology, GM is still generating significant cash flow from its traditional operations.
Microsoft remains one of the most influential technology companies in the world, with leadership across cloud computing, software, and artificial intelligence. Its diversified revenue streams and strong margins make it a cornerstone holding for many investors.
Pet Valu operates in a resilient segment of retail, benefiting from steady demand tied to pet ownership. The company’s franchise model and focus on essential products contribute to consistent cash flow and defensiveness.
Progressive is a major player in the U.S. insurance market, known for its data-driven underwriting and pricing strategies. The business benefits from recurring revenue and has demonstrated an ability to adapt across different market environments.
Uber has evolved beyond ride-hailing into a broader platform spanning mobility, delivery, and logistics. As the company continues to scale and improve profitability, some investors see a path toward stronger and more predictable cash flow.
The Ticker Take
Investors often think of waiting as a passive activity, sitting on the sidelines until the right opportunity appears.
Thom’s strategy flips that idea.
By combining value investing with options, it turns patience into a potential source of income.
The goal is not just to buy great companies at better prices, but to get paid while waiting for those opportunities to materialize.
In a market where uncertainty remains elevated, that disciplined, income-focused approach may resonate with investors looking for both defense and flexibility.
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.
