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March Madness Investing – Covered Calls

The March Madness basketball fever is about to reach its zenith for the year with the culmination of the NCAA basketball tournament championship. With the final game being played on April 2, it appears the madness will extend into the month of April; hence the term “March Madness” may now give way to “March-April Madness”.

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We thought it might be interesting to see how a covered calls strategy for the stocks of companies located in the same geographic region as the basketball teams might compare to each other with the geographic region for UCLA being Los Angeles CA, for Ohio State being Columbus OH, for Georgetown being Washington DC and for the University of Florida being Gainesville FL.

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We searched for covered calls for each of the four geographic regions, but we didn’t find any Gainesville Florida companies with optionable stocks, so as a proxy for the Florida Gators we selected the city of Jacksonville Florida, which is only 70 miles away.

Using PowerOptions stock options search tools we discovered the following covered calls positions for the UCLA Bruins, Ohio State Buckeyes, Florida Gators and Georgetown Hoyas for the month of April 2007.

PowerOptions covered call search – UCLA Bruins
Stock
Sym
Stock
Price
Option
Sym
Expire
&Strike
Opt
Bid
%Dnsd.
Prot
%If
Unch.
%If
Asgnd.
NAPS 4.23 (+0.41) RXUDA 07 APR 5.0 (26) 0.10 2.4 2.4 21.1
GES 42.45 (+0.79) GESDV 07 APR 42.5 (26) 1.35 3.2 3.3 3.4
KBH 45.91 (-0.95) KBHDI 07 APR 45.0 (26) 2.30 5.0 3.2 3.2
PowerOptions covered call search – Ohio State Buckeyes
Stock
Sym
Stock
Price
Option
Sym
Expire
&Strike
Opt
Bid
%Dnsd.
Prot
%If
Unch.
%If
Asgnd.
DSW 42.65 (-1.46) DSWDI 07 APR 45.0 (26) 1.00 2.3 2.4 8.0
WOR 19.58 (-0.09) WORDD 07 APR 20.0 (26) 0.70 3.6 3.7 5.9
RVI 21.20 (-0.26) RVIDD 07 APR 20.0 (26) 1.60 7.5 2.0 2.0
PowerOptions covered call search – Florida Gators
Stock
Sym
Stock
Price
Option
Sym
Expire
&Strike
Opt
Bid
%Dnsd.
Prot
%If
Unch.
%If
Asgnd.
PRKR 13.52 (+0.22) QERDC 07 APR 15.0 (26) 0.4 3.0 3.0 14.3
CSX 40.10 (-1.55) CSXDH 07 APR 40.0 (26) 1.55 3.9 3.8 3.8
JOE 55.54 (-0.22) JOEDK 07 APR 55.0 (26) 1.85 3.3 2.4 2.4
PowerOptions covered call search – Georgetown Hoyas
Stock
Sym
Stock
Price
Option
Sym
Expire
&Strike
Opt
Bid
%Dnsd.
Prot
%If
Unch.
%If
Asgnd.
CCOI 23.98 (-0.13) COIDE 07 APR 25.0 (26) 0.65 2.7 2.8 7.2
BBBB 34.74 (-0.52) BPUDG 07 APR 35.0 (26) 1 2.9 3.0 3.7
INPC 10.69 (-0.11) QIODB 07 APR 10.0 (26) 0.9 8.4 2.1 2.1
(For more details click the ticker symbol above)

We attempted to make the contest as fair as possible, as each team has three covered calls stock options positions with stock options expiration in April of 2007 (26 days). Additionally, each team has one in-the-money covered calls position and two out-of-the-money covered calls positions.

The rules are simple; whichever teams’s covered calls position’s average return is the highest at options expiration in April is the winner. In the event of a tie, we’ll go into overtime and select positions for May.

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] March Madness, UCLA, Los Angeles, Ohio State, Columbus, Georgetown, Washington DC, University of Florida, Gainesville, Jacksonville, Florida, Bruins, Buckeyes, Gators, Hoyas, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]

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