The Dow Jones Industrial Average has been flirting with all-time record highs the last several days. In this situation, a bear call credit spreads stock options position may be a good strategy to consider.
In a recent article, “Bond ETFs, Calendar Calls and the Business Cycle“, we analyzed a Bond ETF calendar calls spread strategy. We will analyze the strategy once again for stock options expiration in September 2006.
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.
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.
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.
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.
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).