In my column last week, I showed you how to use straddle options to take advantage of market/stock volatility when the direction is uncertain. This week, we hop over the fence to the straddle’s sister strategy – the strangle options play.

It’s clear that 2009 is going to be grim in economic terms. Martin Denholm says investors should stick to sectors that fare better during recessions. The healthcare sector, discount retailers and utilities companies provide essential products and generate repeat business. Martin picks the strongest companies in these “safe haven” sectors.

Investors need a solid defense right now, says Martin Denholm. This means holding high-dividend stocks. Consumer staples and telecoms industries are the best places to cherry pick strong companies. For a lower-risk alternative, try these two high-dividend ETFs (AMEX:SDY, PEY).

HP Buys EDS; St. George Agrees to Westpac Takeover; UPS Fights Uphill Battle Against Gas Prices; Cameco Profit’s a “Cake” Walk; Petrobras Post 68% 1Q Profit; High Cost of Oil Dampens Demand; AIG Raises Capital; Yahoo Jumps on Possible Proxy Battle.