In the article, “Sewing Up Profits – Covered Call Investing”, we analyzed the retail fabric market and decided a covered calls stock options strategy was prudent for this segment in light of the popularity of hand made clothing by today’s teens. Two positions were selected for this strategy, and both were profitable returning an average of +2.5%. In article, “Sewing Covered Calls Returns Nice +2.5% in Dec 06”, we again selected retail fabric covered calls positions with options expiration in January of 2007 and the positions generated a nice +2.4% average return.
Wal-Mart:
Wal-Mart (WMT) plans to stop selling fabric in many of its stores; this should be a positive for the retail fabric players.
With Wal-Mart stepping out of the retail fabric business, we’re even more bullish on the retail fabric players and using PowerOptions powerful stock options search tool we searched for covered calls positions with options expiration in February of 2007. The following covered calls stock options positions were found:
| SmartSearchXL covered call search for December 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
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| JAS | 25.12 (-0.27) | JASBE | 07 FEB 25.0 (25) | 0.95 | 3.8 | 3.4 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACMR | 20.91 (-0.28) | QRVBD | 07 FEB 20.0 (25) | 1.25 | 6 | 1.7 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Competitors:
Competitors for JAS include: AC Moore Arts & Crafts Inc. (ACMR), Hancock Fabrics Inc. (HKF), and Michaels Stores, Inc. (private).
The JAS and ACMR covered calls stock options positions are in-the-money [ITM] with maximum potential returns of +3.4% and +1.7%, with profit potentially being experienced in only 25 days. The JAS and ACMR covered calls positions will return +3.4 and +1.7% respectively. Even if the stock price remains stagnant on options expiration day in January of 2007, and the positions also have nice downside protection of 3.8% and 6% respectively.PowerOptions provides a free 14-day trial of its service. Join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
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 options positions.
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[tags]Michaels Stores, Inc., ACMR, A.C. Moore Arts & Crafts Inc., WMT, Wal-Mart Stores Inc., covered call investment strategy, covered call options, investment strategy, iron condor, option income, poweroptions, stock option trading, stock options[/tags]