3% to 13% Potential Profits for Feb. 2007

The PowerOptions weblog identified several successful trades for the option expiration month of February. Below is a table showing three successful trades we identified.

Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_02_20_Results.mp3

The companies identified in chart above are:
Nucor Inc. (NUE) – Article, “Nucor (NUE) to Buy Harris Steel – Covered Calls”. Manufacturers and sells steel and steel products. Their products include fasteners, prefabricated steel buildings, and structural beams. This stock continues to look strong in the near term. In current news, the company is working on a new 12-acre steel distribution facility in Florida.

US Steel (X) – Article, “Analysts Bullish on Steel Sector – AK Steel (AKS) & US Steel (X)”. Produces raw steel and some manufactured products such as ore pellets and tubular extrusions. In recent news, several analysts are warning that it’s time to take profits with steel stocks, including US Steel. Incidentally, the AK Steel bull call debit spread mentioned in the same article returned a healthy 16.3% potential profit.

Sony (SNE) – Article, “Jim Cramer’s Sony Pick – Can I Watch TV & Get Rich?”. The famed consumer electronics manufacturer was widely touted as the better value when compared to the media-darling Apple (AAPL). It turns out they were right as the last month has seen Apple stock drop over 10% while Sony’s jumped about 15%. In addition to the 3.1% potential gain of the covered call, we also identified a bull call debit spread with a potential profit of 22.0%. In recent news, Sony is still downplayed because of the beleaguered Playstation 3. But, despite the hype, the company’s fundamentals look strong.

Competitors:
Competitors for NUE include: Commercial Metals Co. (CMC), United States Steel Corp. (X), Mittal Steel USA (private), AK Steel Hldg. Corp. (AKS), Chaparral Steel Co. (CHAP), Carpenter Tech. Corp. (CRS), Gerdau AmeriSteel Corp. (GNA), Oregon Steel Mills Inc. (OS), Schnitzer Steel Indus. Inc. (SCHN), Steel Dynamics Inc. (STLD), Ternium S.A. (TX), and Wheeling-Pittsburgh Corp. (WPSC).
Competitors for X include: Arcelor Mittal (MT), Nucor Corp. (NUE), Arcelor S.A. (private), AK Steel Hldg. Corp. (AKS), Cleveland-Cliffs Inc. (CLF), Commercial Metals Co. (CMC), Carpenter Tech. Corp. (CRS), Gerdau AmeriSteel Corp. (GNA), Ipsco Inc. (IPS), Steel Dynamics Inc. (STLD), Timken Co. (TKR), Tenaris SA (TS), Ternium S.A. (TX), and Wheeling-Pittsburgh Corp. (WPSC).
Competitors for SNE include: Matsushita Electric Industrial Co. Ltd. (MC), Koninklijke Philips Electronics NV (PHG), Activision Inc. (ATVI), Avid Technology Inc. (AVID), Dolby Laboratories Inc. (DLB), Eastman Kodak Co. (EK), Immersion Corp. (IMMR), In Focus Systems Inc. (INFS), Universal Display Corp. (PANL), Polycom Inc. (PLCM), Rimage Corp. (RIMG), Seachange Intern. (SEAC), Sonic Solutions (SNIC), and Audiovox Corp. (VOXX).
Sony is attractive for a long strategy, but there may be better investment opportunities out there for a covered call strategy. It also may be wise to heed the analysts’ warnings regarding the lack of potential gains in the steel industry. Check back daily to find out how, using PowerOptions powerful option search engine, we can demonstrate how you identify attractive covered calls stock options and trades like those mentioned above.

For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.

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[tags]Mittal Steel USA, Arcelor S.A., AKS, AK Steel Hldg. Corp., ATVI, Activision Inc., AVID, Avid Technology Inc., CHAP, Chaparral Steel Co., CLF, Cleveland-Cliffs Inc., CMC, Commercial Metals Co., CRS, Carpenter Tech. Corp., DLB, Dolby Laboratories Inc., EK, Eastman Kodak Co., GNA, Gerdau AmeriSteel Corp., IMMR, Immersion Corp., INFS, In Focus Systems Inc., IPS, Ipsco Inc., MC, Matsushita Elec. Indus. Co. Ltd., MT, Mittal Steel Co. N.V., NUE, Nucor Corp., PANL, Universal Display Corp., PHG, Koninklijke Philips Electronics NV, PLCM, Polycom Inc., RIMG, Rimage Corp., SCHN, Schnitzer Steel Indus. Inc., SEAC, Seachange Intern., SNIC, Sonic Solutions, STLD, Steel Dynamics Inc., TKR, Timken Co., TS, Tenaris SA, TX, Ternium S.A., VOXX, Audiovox Corp., WPSC, Wheeling-Pittsburgh Corp., X, U.S. Steel Group, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options[/tags]