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 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. Continue reading

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 deal is expected to close in the first quarter of 2007. Continue reading

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 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! Continue reading

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 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! Continue reading

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 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. Continue reading

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, “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. Continue reading

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 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! Continue reading

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 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. Continue reading