Novartis was one of the great disasters on the Swiss stock exchange over the past 12 months. The share has dropped by more than 30%, from CHF 100 last summer to less than CHF 70 at the end of March 2016. The stock is trading at the same levels as in 2006 (! ) which shows that a buy & hold" strategy is not always a winning one, even on swiss "blue chips". However, Novartis has started to bounce back and at CHF 79 per share, it offers an upside potential of about 15% with price targets around CHF 95. The recent restructuring which gave birth to a Novartis Oncology Division was viewed positively by analysts, and changes at the head of the pharma division should also be a catalyst for a recovery in the share price.

For investors focused on yield, selling puts is interesting. For example selling puts, strike 72, due March 2017, reports CHF 3.22, or more than 3% ... and without taxes ...

Warning: volatile security and options that is not suitable for risk-averse investors.

This is not a recommendation but just our opinion. Please consult with your financial advisor before investing!