Monthly Archives: December 2006

January Effect – Stock Trading Insurance

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 … Continue reading

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Terex (TEX) Makes the S&P 500

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.

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OMNI to Buy Charles Holston – Covered Call Strategy

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 … Continue reading

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Diamond (DO) in the Rough

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.

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

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 … Continue reading

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Making Money on Credit Returns +4.3% in Dec 06

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 … Continue reading

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Bearish Trading REITs Returned +4.2% for Dec 06

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 … Continue reading

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Shock and Awe Covered Calls: +2.5% Dec 06

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, … Continue reading

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Generic Drug Investing Returns +2.2% in Dec 06

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 … Continue reading

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

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 … Continue reading

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