With Jim Cramer’s company, TheStreet.com (TSCM), now available for options trading, conservative investors with a high regard for Jim Cramer and his management skills can conservatively invest in his company through covered call investing.
Using PowerOptions SmartSearchXL stock options search engine we searched for covered call stock options positions on October 3, 2006. The results of TheStreet.com covered call investment strategy search are shown below:
|SmartSearchXL covered call search for October 3|
|TSCM||10.20 (-0.14)||UGQDB||07 APR 10.0 (201)||1.55||15.20||15.60||15.60|
|TSCM||10.20 (-0.14)||UGQAB||07 JAN 10.0 (110)||1.15||11.30||10.50||10.50|
|TSCM||10.20 (-0.14)||UGQDV||07 APR 12.5 (201)||0.75||7.40||7.90||32.30|
|TSCM||10.20 (-0.14)||UGQKB||06 NOV 10.0 (47)||0.85||8.30||7.00||7.00|
|TSCM||10.20 (-0.14)||UGQDU||07 APR 7.5 (201)||3.00||29.40||4.20||4.20|
|TSCM||10.20 (-0.14)||UGQAV||07 JAN 12.5 (110)||0.40||3.90||4.10||27.60|
|TSCM||10.20 (-0.14)||UGQJB||06 OCT 10.0 (19)||0.55||5.40||3.60||3.60|
The search results illustrate the reason the covered call investment strategy is considered conservative (see “Aggressive Strategy for the Conservative Investor” for more information). All of the positions have “downside protection”, i.e., the stock can decline in value and the covered call position can still remain profitable. The search results also illustrate the reason the covered call investment strategy is considered aggressive.
The 07 APR 12.5 (UGQDV) covered call stock options position has a potential return of 32.3% if the price of TSCM is greater than or equal to $12.5 on stock options expiration day in April, 2007 (201 days), but even if the stock remains stagnant, the 07 APR 12.5 covered call stock options position will return 7.9%.
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a covered call investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing covered call stock options positions.
[tags]options trading, stock options, covered call investment strategy, option income, Jim Cramer[/tags]