This is a leader in its industry.

Buying these types of companies at the right price leads to wonderful long term growth. However, it also presents us with the opportunity to collect regular income checks.

I am a huge fan of companies that sell the basics.

Successful investing is rarely exciting. The most successful companies over long periods of time for owners and investors have been companies that sell everyday items like beer, toothpaste, chocolate and toilet paper. During good times and bad people still buy their products which products you during recessions and provides consistent growth during economic recoveries.

Today Colgate Palmolive (CL) sells billions of dollars worth of sales of consumer-products every year. It is also showing attractive signs that lead me to believe it is a great put selling opportunity.

Colgate sells popular products around the world under 31 brand names. It is the number one toothpaste company in the world with Colgate and Tom's brand representing 41% of the market.

Over the last year sales are up leading to increased earnings per share which now tops $3 per share. It earns great profits with an 18% profit margin. A lot of this free cash flow is used to reward shareholders through dividends and share buybacks. Colgate is a dividend aristocrat having increased dividend payments to shareholders every year for the past 55 years. Currently paying an attractive 2.5% yield.

Shares are currently trading at some of the best valuations in years.

Using the less manipulative valuation method EV/EBITDA. CL trades at 15.2 which is a premium to SP 500 ratio of 13.6 but below Colgates five year average of 17. Consistent companies deverse premium valuations.

Colgate shares have traded sideways allowing EV/EBITDA ratio to fall to multi-year lows.

To turn this opportunity in to cash I would instruct your broker to do the following.

Sell to open the November 16, $67.50 puts on Colgate-Palmolive for $1.90 using a limit order. Get paid 2.8% upfront to agree to buy shares at a discount to current prices.

At expiration if shares are above $67.50: put sellers will keep the $1.90 and in two months earn an 16.1% annualized return.

At expiration if shares are below $67.50: put sellers will buy shares at a 3.5% discount to today's price.

For protection use a stop loss at $60. Shares will have broken support levels and it would be best to lock in a small loss to protect yourself from potentially larger declines.

While the stock trades at a discount, sell put options to collect easy upfront cash. It is like taking candy from a baby.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.