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|
|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 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]