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. In the article, “Bond ETFs – Calendar Calls – Knowing When To Fold-Em “, we continued the bond ETF calendar calls stock options strategy. The final results of the position selected ended with a +3.4% return on November 17, 2006 (options expiration day for November).
We will consider the bond ETF calendar calls stock options strategy again, and will select a position on November 20, 2006 with short options expiring on December 15, 2006 (November options expiration day). The selected position returned by PowerOptions’ SmartSearchXL is shown below:
| Results for Calendar Call Spread search on November 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Sell Option |
Expire &Strike |
Bid | Buy Option |
Expire &Strike |
Ask | %Dnsd Prot |
%If Asgnd. |
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| TLT | 90.09 (+0.14) | TLTLM | 06 DEC 91.0 (25) | 0.3 | TLTFI | 07 JUN 87.0 | 4.3 | 7 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The calendar calls stock options position selected has a potential return of +2.5% even if the position has remained flat on options expiration in just 25 days.
Join PowerOptions today, and you too can start reaping the benefits of the bond ETF calendar calls spread investment strategy.
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 calendar call spread investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing calendar call spread options positions.
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, iron condor and selling naked puts stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags]calendar calls, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]