In blog article, “Wal-Mart – Generic Drugs – Options Investing“, we analyzed the generic drug industry in view of Wal-Mart’s introduction of $4 generic drugs. Using PowerOptions’ SmartSearchXL stock options search tool, we discovered three attractive generic drug covered calls stock options positions. The selected covered calls positions returned an average of +1.3% at options expiration in November of 2006.
The MYL position lost -2% but the loss was not as large as simply holding the position (-4.8%), illustrating a nice feature of covered calls investing. Additionally, even though the stock prices of the other two positions dropped slightly, the return of both positions was still positive (+2.1% and +3.9%).The generic drug landscape still appears attractive, so we will once again search for generic drug covered calls positions using PowerOptions SmartSearchXL stock options search tool. The selected position is shown below:
| SmartSearchXL covered call search for November 28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
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| BRL | 50.11 (+0.06) | BRLLJ | 06 DEC 50.0 (18) | 1.2 | 2.4 | 2.2 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Only one generic drug covered calls stock options position was found with a potential return of +2.2% (18 days) and with downside protection of 2.4%.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call 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 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.
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]blog, covered call investment strategy, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]