Most investors know which stocks they’d like to own. The harder part is deciding when, and at what price, to buy them.

Buy too soon, and you risk overpaying. Wait too long, and the opportunity may pass you by.

The “BOGO Strategy” offers another approach: potentially collecting income while you wait for a stock to reach a price you’d actually be comfortable paying.

The name comes from the same idea behind a grocery-store BOGO sale: getting something you already want at a more attractive price.

Imagine you’ve been watching a stock that’s trading at $100.

You like the company. You just don’t like the price.

So, instead of buying the shares today (or placing a limit order and hoping they eventually decline) you can sell a put option at the price where you’d actually be willing to become a shareholder. In exchange, you collect cash (the premium) upfront.

From there, one of two things can happen:

  1. Scenario #1: The stock never falls to your target price. The option expires worthless, and you keep the premium you collected.
  2. Scenario #2: The stock declines to your chosen price. You may be assigned the shares, but you’re buying a company you already wanted to own at a price you decided made sense.

Either way, you’ve approached the trade on your terms instead of reacting to the market.

That’s the philosophy behind the “BOGO Strategy.”

Now let’s get to the stocks this works on right now.

BOGO Opportunity #1: Meta Platforms, Inc.

Meta Platforms (NASDAQ:META) remains one of the market’s premier technology companies, and one worth owning under the right circumstances.

While the stock has recovered from its recent pullback, I wouldn’t necessarily chase it at today’s price. Instead, you want to identify a significantly lower price where you’d be comfortable becoming a long-term shareholder.

That’s where the BOGO Strategy comes in.

Rather than waiting for the stock to fall, you can sell a long-term put option at that lower price and collect premium income upfront for taking on the obligation to potentially buy the shares.

Here’s an example: 

If META never trades down to my target, you simply keep the premium.

If it does, you may have the opportunity to own one of the market’s strongest technology companies at a deep discount. 

That’s exactly the type of setup I look for when building my list of BOGO opportunities—and it’s why Meta sits at the top of my current list.

BOGO Opportunity #2: HCA Healthcare Inc.

Healthcare has long been one of the market’s more resilient sectors, and HCA Healthcare (NYSE:HCA) continues to stand out as a company worth owning, just not at any price.

But rather than buying shares after a rally, start by asking what price would make HCA truly attractive as a long-term investment.

Once you have that answer, you can evaluate selling a put option near that level. 

Here’s an example:

The goal isn’t to predict whether HCA will move higher or lower over the coming months.

The goal is to potentially collect income today while positioning yourself to buy the stock only if it falls to a price you’ve already decided represents good value.

For investors willing to be patient, it’s a disciplined way to approach a quality company without feeling pressured to buy at today’s market price.

BOGO Opportunity #3: State Street Corp.

 

State Street (NYSE:STT) rounds out my list because it highlights another important part of the BOGO Strategy.

After a strong move higher, many investors feel like they’ve already missed the opportunity.

But I see it differently.

Instead of chasing the stock, you can identify a much lower entry price – one where you’d genuinely be excited to own the shares – and explore whether selling a put option at that level offers an attractive premium, like the example below:

If the stock never pulls back, you keep the income generated from the option.

If it does, you may have the opportunity to purchase a high-quality financial company at a significant discount to where it was trading when  you entered the position.

That’s the beauty of the strategy. You’re not hoping the market will cooperate, you’re deciding in advance what price makes sense to you – and getting paid while you wait to see if the opportunity arrives.

Putting the BOGO Strategy to Work

Most investors spend their time trying to predict where a stock is going next.

The BOGO Strategy starts with a different question:

“At what price would I actually be happy to own it?”

Once you’ve identified that price, you can begin looking for opportunities to potentially collect income while you wait for the market to come to you.

Of course, every investor’s situation is different. The amount of capital you commit, the option strategy you choose, and the expiration dates you use should all align with your own investment goals and risk tolerance.

But one principle never changes:

Only use this strategy with companies you’d genuinely be happy to own.

And instead of letting the market dictate your next move, you let the market come to you.