Stock Option Advisory

Bearish on Oil Stocks in Nov. – Rich +6.2% Return

In the article, “Bearish on Oil Stocks?“, we outlined a bearish strategy for oil stocks for the next few months. We continued the oil saga in November and every position selected was fully profitable returning an average of +6.2%.

We still consider a bearish strategy on oil stocks to be potentially lucrative, and on November 28, 2006 we searched for bear call credit spreads stock options positions for oil company stocks with all options expiring on December 15, 2006 and found the following positions:

SmartSearchXL search on November 28
Bid Buy
Ask %Return
OXY 48.29 (+0.44) OXYLJ 06 DEC 50.0 (18) 0.45 OXYLK 06 DEC 55.0 (18) 0.05 8.70
VLO 53.11 (+1.23) VLOLK 06 DEC 55.0 (18) 0.60 VLOLL 06 DEC 60.0 (18) 0.10 11.10
SU 77.57 (+1.44) SULP 06 DEC 80.0 (18) 1.25 SULR 06 DEC 90.0 (18) 0.10 13.00

Three attractive positions were found, OXY, VLO and SU, with all of the positions having potential returns in the +8 to +13% range with only 18 days until stock options expiration. These potential returns will be fully realized provided the price of stock is below the short option on options expiration day. For example, the OXY bear call credit spreads position will be profitable as long as the price of OXY is below $50 at options expiration.

PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the oil and gasoline bear call credit spreads 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 bear call credit spreads investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing bear call credit spreads stock options positions.

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[tags]bear call credit spreads, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]

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