In Shakespeare’s Hamlet, the young prince Hamlet utters the phrase “To be or not to be-that is the question..” as he is considering whether to commit suicide or not. The question we ponder in this article is “should we invest in the United Kingdom or not?”
With this article, we continue the evaluation of world economies with the examination of the United Kingdom. The United Kingdom has a long and fragmented history. It is the fifth largest economy in the world after the United States, Japan, Germany, and China. At one point, the United Kingdom had dominion over the largest land mass and population in the world encompassing large portions of Europe, America and Asia.
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Over time, many of colonies established by the United Kingdom gained their independence. The decolonization of the United Kingdom and its participation in World Wars resulted in a significant decrease in the dominion and power of the United Kingdom.
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The economy of the United Kingdom has evolved from a largely industrial manufacturing economy to a service economy. The bulk of the United Kingdom’s economy is now service oriented with the financial sector as the dominant portion of the service economy. The city of London is the center of the financial sector for the United Kingdom offering banking, insurance and investment services.
Some UK companies with optionable stocks are shown below.
|UK Companies with Optionable Stocks|
The United Kingdom’s financial sector is a juggernaut and is looking very bullish. Using PowerOptions stock options search tools, we discovered the following covered calls stock options positions for UK financial sector companies.
|PowerOptions covered call search|
|WSH||39.14 (-0.59)||WSHGH||07 JUL 40.0 (117)||1.15||2.9||3.0||5.3|
|AVZ||23.95 (-0.15)||AVZEE||07 MAY 25.0 (54)||0.50||2.1||2.1||6.6|
The search for UK financial sector covered calls stock options positions returned two potential positions, WSH and AVZ with unchanged returns of 3% (117 days) and 2.1% (54 days), respectively and with downside protection of 2.9% and 2.1% respectively. As long as a stock does not decline in price more than it’s downside protection at option expiration, the position will remain profitable.
The WSH and AVZ positions have maximum potential returns of 5.3% and 6.6% but require an increase in the price of the stock to or above the strike price of the call option to realize the maximum returns.
Competitors for AVZ include: Merrill Lynch & Co. Inc. (MER), FMR Corp. (private), and Schroders plc (private).
Competitors for WSH include: Aon Corp. (AOC), Arthur J Gallagher & Co. (AJG), and Marsh & Mclennan Companies Inc. (MMC).
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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