Stock Option Advisory

Land of the Rising Sun is Looking Up

Japan’s GDP grew at a very nice 1.3% in the last quarter of 2006. Japan’s economy was in the doldrums for over a decade and in the last few years has started to perk up. In the early 1970’s the term “Japan Inc” was coined, as it appeared the Japanese were going to dominate the globe with their business and manufacturing acumen. But “Japan Inc” turned into “Japan Red Ink” as Japan experienced a severe real estate bubble and faced increasing competition from Korea and China.

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With the European economies considered as separate entities, Japan has the 2nd largest economy in the world after the United States. With the European economies considered in aggregate, Japan has the third largest economy after the United States and the European Union.

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The Japanese economy appears on the upswing, so Japanese companies are looking bullish and worthy of consideration for a covered calls stock options investment strategy.

Listed below are some Japanese companies and indexes, which are optionable.

Japanese Companies/Indexes with Optionable Stocks
(To see more details for a company click on the company’s ticker symbol above)

Using PowerOptions stock options search tools we discovered the following attractive covered calls stock options positions for Japanese companies.

PowerOptions covered call search
CAJ 53.75 (+0.24) CAJFK 07 JUN 55.0 (96) 2.65 4.9 5.2 7.6
HMC 36.38 (-0.34) YMDAH 08 JAN 40.0 (313) 2.15 5.9 6.3 16.9
IIJI 9.64 (+0.19) IQDDB 07 APR 10.0 (40) 0.30 3.1 3.2 7.1
IIJI 9.64 (+0.19) IQDJB 07 OCT 10.0 (222) 1.15 11.9 13.5 17.8
MTU 11.88 (-0.05) MTUHV 07 AUG 12.5 (159) 0.55 4.6 4.9 10.3
NTT 25.89 (+0.05) NTTFE 07 JUN 25.0 (96) 1.60 6.2 2.9 2.9
DCM 18.04 (unch.) DCMJD 07 OCT 20.0 (222) 0.40 2.2 2.3 13.4
SNE 52.85 (+0.36) SNEGK 07 JUL 55.0 (131) 2.65 5.0 5.3 9.6
SNE 52.85 (+0.36) SNEGJ 07 JUL 50.0 (131) 5.30 10.0 5.2 5.2
TM 132.64 (-0.50) TMDF 07 APR 130.0 (40) 5.30 4.0 2.1 2.1
TM 132.64 (-0.50) TMDG 07 APR 135.0 (40) 2.75 2.1 2.1 3.9
TM 132.64 (-0.50) TMGF 07 JUL 130.0 (131) 9.70 7.3 5.7 5.7
TM 132.64 (-0.50) TMGG 07 JUL 135.0 (131) 7.10 5.4 5.7 7.5
(To see more details for a company click on the company’s ticker symbol above)

A variety of covered calls positions were found with a variety of potential returns and timeframes for stock options expiration.

Three positions (two for TM and one for IIJI) have options expiration in April of 2007 with potential returns in the 2.1% to 7.1% range with only 40 days until expiration.

Some of the positions are in-the-money with nice downside protection and reasonable returns. For example, the second SNE position with 10% downside protection and 5.2% potential return.

Some of the positions are out-of-the-money with smaller downside protection but with greater upside potential than the in-the-money positions. For example, the MTU position has a very nice %if assigned potential return of 10.3% and downside protection of 4.6%.

The in-the-money/out-of-the-money tradeoff illustrates how powerful the covered calls stock options investment strategy is, as it allows investors to tailor their investments according to their own personal risk/reward profile.

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.

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‘ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered calls, naked puts and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.

[tags] Japan, GDP, Korea, China, European, United States, Japanese, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]

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