Politics and Options Investing

The Free Enterprise Action Fund (a small fund run by Republican Lobbyists) is a mutual fund that set out to prove that red leaning companies had superior earnings to that of blue leaning companies. During the first nine months of this year, the fund has lagged behind the S&P 500 by about 3 percentage points. Continue reading

Skateboarding – Just Fun or Good Business?

Any company that lets you design your own skateboard in an easy to use interactive environment is at least a novelty. And if outfitting your Rasta Panda deck with Thunder Jamie Thomas ’05 trucks doesn’t get you going then you’re probably more into stock investing than skateboarding. Continue reading

Delta Petro. Corp. (DPTR) – Covered Calls

Delta Petroleum Corporation (DPTR) is a Denver, Colorado company that concentrates on the production and sale of natural gas and crude oil. They are an independent company that has seen significant movement in their stock price in the last month – $19.50 to its current price of $26.50. Continue reading

Trucking – Fuel Costs – Stock Option Investing

With the recent decreases in the cost of fuel, the trucking industry is looking bullish. Like the airline industry, one of the largest operating expenses incurred in the trucking industry is for fuel, second after expenses for labor.When the cost for fuel decreases, the trucking industry’s costs are decreased, so the savings helps the industry’s bottom line. Continue reading

Newmont Mining Corp. (NEM) – Gold or Dust?

Newmont Mining Corp. (NEM) is scheduled to announce its quarterly earnings on 1 November at 4 pm EST. What do they do? Newmont Mining Corporation is one of the largest producers of gold and copper. They have mining operations all over the globe from the embattled Uzbekistan to the United States. Continue reading

Bond ETFs – Calendar Calls – Know When To Fold-Em

In the article, “Bond ETFs – Calendar Calls and the Business Cycle“, we outlined a bond ETF calendar calls stock options strategy. This strategy is mostly geared for a softening economy, but may perform well in an environment of relatively unchanging interest rates as well, as is the case of the current interest rate environment. Continue reading

Bearish Trading REITs Returned 7.5%

In a previous article, “Bearish Trading & REITs“, we outlined a bear call credit spreads strategy for Real Estate Investment Trusts (REITs). In the article, a bear credit call spreads position for MLS was selected with a maximum return of 7.5%. Since MLS remained below the short call strike price of $17.5, the position was fully profitable. Continue reading

Bearish on Oil Stocks in Oct. – Nice 5.1% Return

In article, “Bearish on Oil Stocks?“, we outlined a bearish strategy for oil stocks for the next few months. Almost every single bear call credit spreads stock options investment position selected in the article returned the maximum possible return with an average return of 5.1% in only 12 days. Continue reading

DJIA – Price Resistance – Revisited

In article, “DJIA – Stock Price Resistance“, we outlined a bearish strategy for the Dow Jones Industrial Average when the index is close to its historic high using bear call spread options. Basically, the $DJX had to remain below $120.1 for the strategy to be profitable. The options for the $DJX expire “AM Settlement”, and based on the opening price of the stocks in the $DJX on October 20, 2006, the settlement price for the $DJX was $120.16 (see settlement values ). Continue reading