Bear’s are After the Homebuilders

The real estate market and the homebuilders in particular have been enjoying a big party over the last few years as a result of interest rates being at historic low levels. Low interest rates allow more buyers to purchase a home, thereby increasing demand and price. Continue reading

Recession Proof Calendar Call Spreads: Sept. 2006

In a previous article, “Recession Proof Calendar Call Spread Strategy “, we outlined a “recession proof” calendar call spread investment strategy. Using the recession proof stock symbols and PowerOptions new SmartHistoryXL options back testing tool we analyzed the results of a calendar options spreads strategy by searching for and selecting positions on August 21, 2006. Continue reading

Recession Proof Covered Call Strategy: Sept. 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, July and August returning +3.8%, +4.4% and 4.5%, respectively. Continue reading

Company Earnings and Stock Options Straddle

In at least one way, the stock market is similar to flying an airplane, a tedious and boring long period of time followed by a very chaotic and stressful short period of time. A lot of the stock market’s chaotic moments are a result of companies reporting their quarterly earnings. Continue reading

Bond ETFs, Calendar Calls and the Business Cycle

With the U.S. Federal Reserve recently taking a pause in increasing short-term interest rates, a stock options strategy to consider for a future date is calendar calls spread stock options with positions in bond fund ETFs. We will consider longer-term bond fund ETFs, in particular we will consider the iShares 20+ Year Treasury Bond Fund (TLT). Continue reading