In a prevous article, “CME Buying CBOT”, we analyzed CME’s purchase of CBOT and we used PowerOptions stock options search tools to find some potentially lucrative covered calls stock options investments with stock options expiring in November of 2006. Every single position selected returned the maximum potential return for an average return of +3.9%, in just 32 days.
In another article, “CME Covered Call Strategy Returns +3.9% in Nov.”, we again selected CME positions and every position was fully profitable with an average return of +4.3%, in 46 days.
We’re still bullish on CME and using PowerOptions Option Chain Tool to search for potential candidates for February of 2007 returned the following covered calls stock options positions.
| Chicago Merc. Exch. Hldgs. Inc. (CME) $ 590.01 FEBRUARY Expiring 2/17/2007 24 days left | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Strike | Call Sym |
Opt Bid |
%Dnsd Prot |
%If Unch. |
%If Assgnd. |
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| 580 | CNMBV | 24.7 | 4.20% | 2.60% | 2.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 590 | CNMBW | 19.6 | 3.30% | 3.40% | 3.40% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 600 | CNMBX | 14 | 2.40% | 2.40% | 4.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For CME, the Option Chain Tool returned three potentially lucrative covered calls stock options positions with potential returns ranging from 2.4% to 3.4% (24 days) with downside protection ranging from 2.4% to 4.2%. The higher potential returns for CME are out-of-the-money [OTM] and also exhibit smaller downside protections. The lower potential returns for CME are ITM and have higher downside protection. This illustrates the beauty of covered calls investing, as an investor can tailor their investments according to their own personal risk/reward profile, aggressive investors can select positions more in the OTM direction and investors seeking more safety can select positions more in the ITM direction.
Competitors:
Competitors for CME include: CBOT Holdings Inc. (BOT), Deutsche Börse AG (private), and LIFFE (Holdings) plc (private).
PowerOptions provides a free 14-day trial of its service. So 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 calls stock options investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing stock options positions.
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[tags]Deutsche Börse AG, LIFFE (Holdings) plc, BOT, CBOT Holdings Inc., CME, Chicago Merc. Exch. Hldgs. Inc., covered call investment strategy, investment strategy, iron condor, option income, poweroptions, selling naked puts, stock option trading, stock options[/tags]