Archive for December, 2006

January Effect - Stock Trading Insurance

Saturday, December 30th, 2006

In a previous article, “Portfolio Management: Stock Insurance”, we explained how to insure a position or portfolio of positions against a large loss by using protective put options. In article, “January Effect - Part 2″, we explained the theory behind The January Effect. Basically, The January Effect is theorized to be a result of [...]

Terex (TEX) Makes the S&P 500

Thursday, December 28th, 2006

Shares of Terex Corp, (TEX) hit a new 52-week high of $66.48 Wednesday December 27th. The stock is being buoyed by its recent placement on the S&P 500 and sector-wide analyst “Buy” ratings.

OMNI to Buy Charles Holston - Covered Call Strategy

Wednesday, December 27th, 2006

Omni Energy Services Corp. (OMNI), an oil and gas exploration company said last week it has plans to purchase Charles Holston Inc., an environmental services company, for $23 million. Omni will use cash and promissory notes for the purchase. The deal is expected to close in the first quarter of 2007.

Diamond (DO) in the Rough

Wednesday, December 27th, 2006

Third Quarter Profits Up:
Diamond Offshore Drilling Inc. (DO) said Last October its third-quarter earnings doubled. The company noted the demand for its equipment and services had risen substantially driving revenue upward.

CME Bull Put Spreads Strategy - Nice 5.8% in Ten Days

Wednesday, December 27th, 2006

In a previous article, “CME Buying CBOT”, we analyzed Chicago Mercantile Exchange’s (CME) purchase of CBOT (BOT) and we illustrated the profitability of the covered call strategy for CME.In article, “CME Covered Call Strategy Returns +3.9% in Nov.”, we selected covered calls positions for CME once again for stock options expiration in January and we [...]

Making Money on Credit Returns +4.3% in Dec 06

Wednesday, December 27th, 2006

In the article, “Visa - Plastic Money - IPO”, we analyzed the credit card industry and illustrated how profitable a covered call strategy for credit card companies can be.In article, “Making Money on Credit Returns 3%”, we selected several covered call positions for MasterCard (MA) for December stock options expiration and every position was profitable [...]

Bearish Trading REITs Returned +4.2% for Dec 06

Saturday, December 23rd, 2006

In a previous article, “Bearish Trading & REITs”, we outlined a bear call credit spreads strategy for Real Estate Investment Trusts (REITs). In the article, a bear call credit spreads position for Mills Corp. (MLS) was selected with a maximum return of +7.5%. In article, “Bearish Trading REITs Returned 7.5%” we selected another bear call [...]

Shock and Awe Covered Calls: +2.5% Dec 06

Saturday, December 23rd, 2006

In article, “North Korea - Nuclear Bombs - Defense Contractors”, we analyzed the defense contractor industry for covered call stock options opportunities and all of the positions we selected were fully profitable with an average return of +3%. In article, “Defense Contractors Returns Booming +3% for Nov.”, we selected another defense covered calls stock options [...]

Generic Drug Investing Returns +2.2% in Dec 06

Saturday, December 23rd, 2006

In the blog article, “Wal-Mart (WMT) - Generic Drugs - Options Investing”, we analyzed the generic drug industry in view of Wal-Mart’s (WMT) introduction of $4 generic drugs. And in article, “Generic Drug Investing Returns +1.3% in Nov.”, we showed the profitability of the generic drug covered calls strategy and also selected a covered [...]

FedEx (FDX)/UPS - Covered Call Profits: +1.4% Dec 06

Friday, December 22nd, 2006

In a previous article, “FedEx (FDX) Delivering Profits - Covered Calls” we analyzed the package delivery business in light of the declining cost of fuel.Using PowerOptions powerful stock options search tools we found four positions with stock options expiring in December of 2006, two positions for Federal Express (FDX) and two positions for United Parcel [...]