In blog article, “Trucking – Fuel Costs“, we analyzed the trucking industry in light of recent decreases in the cost of fuel. Using PowerOptions’ SmartSearchXL stock options search tool we found several attractive covered calls stock options positions with stock options expiring in November of 2006. The average return of these positions was a very sweet +2.8%, generated in only 24 days.
We consider the trucking industry to have more pulling power, so we will search for trucking related covered calls stock options positions with options expiring in December of 2006. The results of our search are shown below:
| SmartSearchXL covered call search for October 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
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| YRCW | 40.12 (-0.10) | YUXLH | 06 DEC 40.0 (18) | 1.25 | 3.1 | 2.9 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LSTR | 45.62 (-0.65) | QRYLI | 06 DEC 45.0 (18) | 1.65 | 3.6 | 2.3 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
All of the trucking industry covered calls stock options positions found are in-the-money [ITM] with potential returns of +2.9% and 2.3% (18 days) with downside protections of 3.1% and 3.6%, respectively. ITM covered calls stock options generally provide more downside protection than out-of-the-money [OTM] covered calls stock options positions. OTM covered calls stock options positions generally provide more potential return, but require the underlying stock price to appreciate in order to realize the maximum potential return.
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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.
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[tags]blog, covered call investment strategy, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]