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 investors selling loser stocks in order to realize tax losses near the end of a year. After the loser stocks have been depressed from the tax loss selling and the selling of the loser stocks subsides, the prices of the stocks begin to recover after the start of a new year.
Monthly Archives: December 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 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.
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.
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 also selected bull put credit spreads positions for CME for expiation in December. The December bull put credit spreads selected for CME returned an average of +5.8% in just 10 days!
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 returning an average of +4.3% in only 30 days!
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 credit spreads position for Mills Corp which generated a very nice return of +4.2% in only 57 days.
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 position for ManTech (MANT) and it was fully profitable returning a very nice +2.5% return in only 19 days.
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 calls position for December 2006. The Barr Pharmas (BRL) covered calls position selected returned a very nice +2.2% return, in only 18 days!
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 Service (UPS). The average return for the positions was +1.4% in only 33 days.