In previous articles, ” Recession Proof Covered Call Investment Strategy” & ” Recession Proof Covered Call Strategy Results for August 2006 “, we outlined a “recession proof” covered call investment strategy. In this article we perform an analysis using the “recession proof” stocks as outlined in the other articles but using calendar spread options instead of a covered call investment strategy.
Monthly Archives: August 2006
In a previous article, Recession Proof Covered Call Investment Strategy , we outlined a covered call investing strategy focusing on “recession proof” stocks. This strategy exhibited great results for the months of June and July, returning +3.8% and +4.4% respectively. We’re going to examine the results of the same strategy for themonth of August.
Using PowerOptions new SmartHistoryXL Back Testing tool, we analyzed Jim Cramer’s bullish high dividend yield stock market tips for June 21, 2006 to July 21, 2006.
Some long investors may still be licking their wounds from the pounding they received in May of 2006; the Nasdaq 100 was down over -7% and the S&P 500 was down over -3%. But May of 2006 didnâ€™t have to be a bummer month.
You may have heard the phrase, “there’s always a bull market somewhere”, referring to the idea that even though the general market is trending down there are still stock symbols of companies trending higher. The reverse can also be said, “there’s always a bear market somewhere”, referring to the idea that even though the general market is trending upward, there are still stock symbols trending downward.
So you’re tired of the roller coaster ride of the stock market, in some years it’s up like gangbusters, and in other years it’s way down under like Australia. We researched all of the current stock symbols listed on the Nasdaq, NYSE, and American stock exchanges for those with “recession proof” characteristics.
Of late, there’s been a lot of press concerning backdating of stock options. Companies use stock options as incentive for employees to excel in their performance. The idea of employee stock options being if the employees excel, the company will excel and the company, company’s shareholders and the employees will all benefit.
In a previous article, we analyzed Jim Cramer’s bullish stock trading tips for shorting opportunities. Based on the analysis in the article a possible shorting opportunity has been discovered. On 7/24/2006 Jim Cramer recommended Openwave Systems (OPWV) saying that he had been “smoked” by OPWV and mentioning that his cell phone has Openwave on it, the day immediately following his recommendation the price of OPWV went higher and 10 market days later is still 9.0% higher than when Jim Cramer made his recommendation, ripe for a short.
PowerOptions provides a search engine for finding potentially lucrative income producing opportunities, for example finding optimum bear-call credit spreads on OPWV.
[tags]stock trading, bear-call credit spreads[/tags]