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.
But, being a person of taste, you can appreciate the appeal.I’m talking about www.zumiez.com . But, the site isn’t their bread and butter it’s their 174 mall outlets. Recently, they have been drawing attention to themselves by touring the country in a brilliant flurry of skateboard ramps, marketing, bands with offensive names and guys with orange hair. It’s called the “couch tour” and you can see more about it on their site ( couch tour ).
The site also has snowboards and pretty much everything you might imagine that would appeal to Gen-Xbox. Or at least those things a middle-aged person might imagine would appeal to the younger set. The company has everything to make a suburban mother’s credit card leap from her purse. If they merged with Bed Bath and Beyond, it might signal a family’s financial apocalypse.
Aside from the hype, the company’s got strong fundamentals; 55.8 Million in sales last quarter and projected EPS of $0.90. A word of caution, there is an earnings report coming out on the 15th of November. The news on the company however does not support the notion that there will be a significant stock move.
Let’s take a look at what the Strategy Search Summary Tool on the PowerOptions website brings up:
| Zumiez INC (ZUMZ) $32.59 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sell Option |
Expire/Strike | Option Bid |
Downside Protection |
Return if Assigned |
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| QUYKF | 06 NOV 30.00 | $3.40 | 10.40% | 2.80% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUYKZ | 06 NOV 32.50 | $1.90 | 5.80% | 5.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUYKG | 06 NOV 35.00 | $0.90 | 2.80% | 10.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The $30 strike covered call investing position is solid with the 10.4% downside, but you might find the 2.8% potential profit a little thin ($0.81 a share). The $32.50 covered call investing position stands out as superior in this chart because of the reasonable downside protection with a respectable 5.9% potential profit. This trade would yield $1.81 a share if assigned. The PowerOptions Strategy Search Tool also offers one-click access company news and other company information.
So, looking at QUYKZ a little more closely, you have per 100 shares a maximum profit of $181.00, a maximum risk of $3,069 and a break-even price of $30.69. This could be a fun trade. And, I forgot to mention same stores sales rose 14.9% this year ( money central article ).
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of covered call investing.
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 investing strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing covered call stock options positions.
[tags] covered call investing, option income, poweroptions, stock investing, stock options [/tags]