Stock Option Advisory

French Investing – Winner or Waterloo – Covered Calls

This article is a continuation of the series in the examination of the world’s economies, and in this article we will consider France. France has the sixth largest economy after the United States, Japan, Germany, China and the United Kingdom. France is the most popular tourist destination in the world with over 75 million visitors each year. The second and third most popular tourist destinations, Spain and the United States, are not even close with around 50 million visitors each year.

The government of France was a monarchy for many years and the monarchy form of government was interrupted briefly by the French Revolution in 1789 and then the rise of Napoleon to power. After Napoleon was defeated at Waterloo, France returned to a monarchy form of government. But in the intervening years, France has transitioned itself into a democratic form of government.

The population of France is highly diverse with a large percentage of its citizens having immigrated from all over the world.

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France has one of the best health care systems in the world and generates the majority of its electricity from nuclear power.

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France has a history of having one of the highest unemployment rates in Europe and its GDP growth over the last few years has been very anemic. The economy of France has some real positives, but until its unemployment rate and GDP growth rate are significantly improved, its economy will have mediocre performance. However, with the covered calls stock options investment strategy, investors can potentially generate income even when a country’s economy is not so hot.

Some French companies with optionable stocks are shown below.

French Companies with Optionable Stocks
ALU AXA BOBJ CGV DA FLML SNY TOT
(For more details click the ticker symbol above)

Using PowerOptions stock options search tools, the following covered calls positions were found for companies based in France.

PowerOptions covered call search
Stock
Sym
Stock
Price
Option
Sym
Expire
&Strike
Opt
Bid
%Dnsd.
Prot
%If
Unch.
%If
Asgnd.
ALU 11.95 (+0.02) ALUEV 07 MAY 12.5 (52) 0.30 2.5 2.6 7.3  
BOBJ 36.15 (-0.40) BBQGH 07 JUL 40.0 (115) 1.15 3.2 3.3 14.3  
FLML 26.08 (unch.) FLUEF 07 MAY 30.0 (52) 0.80 3.1 3.2 18.7  
SNY 42.85 (-0.27) SNYFI 07 JUN 45.0 (80) 0.95 2.2 2.3 7.4  
TOT 69.74 (+0.94) TOTEN 07 MAY 70.0 (52) 1.75 2.5 2.6 3.0  
(For more details click the ticker symbol above)

A variety of covered calls stock options positions with a variety of expiration dates were found for French companies with % if unchanged potential returns ranging from 2.3% to 3.3% and with downside protections ranging from 2.2% to 3.2%. The downside protection for a covered calls position indicates the percentage a stock’s price may decrease and still remain profitable.

For the positions found, the % if assigned potential returns have a range of 3% to 7.3% and require the price of the stock to increase to or above the strike price of the call option in order to realize the maximum return.

Competitors:
Competitors for ALU include: LM Ericsson Telephone Co. (ERIC), Motorola Inc. (MOT), and Siemens AG (SI).
Competitors for BOBJ include: Cognos Inc. (COGN), Hyperion Solutions Corp. (HYSL), MicroStrategy Inc. (MSTR), and Actuate Corp. (ACTU).
Competitors for FLML include: AP Pharma Inc. (APPA), Emisphere Technologies Inc. (EMIS), and ALZA Corporation (private).
Competitors for SNY include: Eli Lilly & Co. (LLY), Merck & Co. Inc. (MRK), Pfizer Inc. (PFE), Abbott Labs (ABT), Amylin Pharma. Inc. (AMLN), Arena Pharma. Inc. (ARNA), Bioenvision Inc. (BIVN), Encysive Pharmas. Inc. (ENCY), GlaxoSmithKline PLC (GSK), Immtech International Inc. (IMM), Momenta Pharmas. Inc. (MNTA), Neurocrine Bios (NBIX), OSI Pharmaceuticals Inc. (OSIP), Pharmion Corp. (PHRM), Schering-Plough Corp. (SGP), Sonus Pharmaceuticals Inc. (SNUS), and Vical Inc. (VICL).
Competitors for TOT include: BP plc (BP), Exxon Mobil Corp. (XOM), Repsol S.A. ADS (REP), Statoil ASA (STO), and Transmeridian Exploration Inc. (TMY).
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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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] France, United States, Japan, Germany, China, United Kingdom, Spain, French Revolution, Napoleon, Waterloo, GDP, ALZA Corporation, ABT, Abbott Labs, ACTU, Actuate Corp., AMLN, Amylin Pharma. Inc., ARNA, Arena Pharma. Inc., BIVN, Bioenvision Inc., BP, British Petroleum Co., COGN, Cognos Inc., EMIS, Emisphere Technologies Inc., ENCY, Encysive Pharmas. Inc., ERIC, LM Ericsson Co., GSK, GlaxoSmithKline PLC, HYSL, Hyperion Solutions Corp., IMM, Immtech International Inc., LLY, Lilly (Eli) and Co., MNTA, Momenta Pharmas. Inc., MOT, Motorola Inc., MRK, Merck & Co. Inc., MSTR, Microstrategy Inc., NBIX, Neurocrine Bios, OSIP, OSI Pharmaceuticals Inc., PFE, Pfizer Inc., PHRM, Pharmion Corp., REP, Repsol S.A. ADS, SGP, Schering-Plough Corp., SI, Siemens AG, SNUS, Sonus Pharmaceuticals Inc., STO, Statoil ASA, TMY, Transmeridian Exploration Inc., VICL, Vical Inc., XOM, Exxon Mobil Corp., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]

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