In article “U.S. Trade Deficit – Ocean Shipping – Covered Calls” we analyzed the shipping industry in light of world trade and the U.S trade deficit. We decided the shipping industry was looking bullish and a covered calls stock options strategy might be a fruitful investment. Three of the four positions we selected were fully profitable and the average return of the positions was +2.2%. Interestingly, the GMR position paid out a huge $15 dividend during the holding period. The lone loser was TOPT with a loss of -2.1% on the position, but the loss for the covered calls position for TOPT was not nearly as large as a straight long position which would have resulted in a loss of -4.1%.
In article “US Productivity Down – Temp Staffing Up – Kforce (KFRC)” we scoped out the temporary staffing industry and zeroed in on Kforce (KFRC). With the economy in kind of a limbo state we decided temporary staffing companies might be attractive for investing in covered calls positions. The position we selected for KFRC was fully profitable returning 5.2%.
In article “El Paso (EP) – Natural Gas – Covered Calls” we zeroed in on El Paso (EP) in light of Texas Utilities (TXU) decision to scrap coal based electrical power generating plants. With less coal in the power-generating picture, natural gas could be a piece of the future electrical power generation picture. Texas Utilities recently announced it plans to forge ahead with nuclear power plants to replace the scrapped coal plants, but nuclear power plants take many years to construct, so El Paso with its natural gas is still sitting in a sweet spot.
In article “AMD vs. Intel (INTC) – Semiconductor War” we mused about the prospects for AMD and decided AMD may indeed turn it around in the long run, but in the short run AMD is one semiconductor wafer short of a full load. In the article, we also selected a bear call credit spreads position for AMD and the position was fully profitable returning a sweet +14.7% return. AMD recently posted a larger quarterly loss than was expected. AMD also plans to make fundamental changes to the company for the longer term, but AMD did not provide specific details regarding pending changes.
In article “Fertilizer is Smelling Good – Covered Calls” we looked at covered calls for fertilizer companies. The stocks for fertilizer companies have been doing very well with the emergence of ethanol as a potential competitor to gasoline derived from oil. We selected covered calls positions for fertilizer companies and every position selected was fully profitable experiencing a very nice +5.4% average return.
In the article “John Bogle Says Modest Returns Over Next Decade – Dividends & Covered Calls” we pondered John Bogle’s prediction of modest stock market returns over the next decade. Mr. Bogle predicted annual stock market returns in the 7% range over the next decade. In the event Mr. Bogle’s prediction is on target, we considered a potential strategy for investors to consider for making the most of the situation.
Not sure how to pronounce ‘Zdravstvuite’, but it’s hello in Russian. In article, “From Russia with Profits – Covered Calls”, we contemplated investing in covered calls for companies located in the country of Russia. Every Russian covered calls position selected was fully profitable, returning an average return of +7.5%. Former Russian President Boris Yeltsin died on Monday of this week. Boris Yeltsin will probably be most remembered for standing on a tank outside the Russian parliament building resisting a coup attempt.
In an article, “Cure for Montezuma’s Revenge – Covered Calls”, we delved into investing in covered calls stock options for Mexican companies. The average return for the covered calls selections was 4.5%. Every covered calls position selected for April 2007 for the Mexican companies was fully profitable. Mexico has some serious issues on the table to resolve. For example, its oil industry is nationalized and the citizens of Mexico pay significantly more for gasoline than the people living in the state of Texas located just north of the Mexican/U.S. border. Jesus Reyes Heroles, the CEO of the Mexico’s state oil company Pemex, recently stated as it currently stands, Pemex will run out of oil in about nine years, unless new investment is poured into finding new oil reserves.
In the article, “Germany – As Far As East Is From West – Covered Calls”, we checked out investing in covered calls stock options positions for companies located in Germany. The average return for the positions selected was +3.7%. The +3.7% return was generated in only 36 days. All eight positions selected were profitable with seven of the eight positions experiencing the maximum return possible for a covered calls position.
In article, “China – Hot, Cold or Lukewarm – Covered Calls”, we scoped out investing in covered calls for Chinese companies. The Chinese covered calls strategy returned a juicy +7% return for April of 2007. Nineteen of the twenty positions were profitable and sixteen of the twenty positions were fully profitable. The lone negative returning position was SINA, which got caught up in the recent Chinese stock market pullback. SINA’s rate of growth has slowed in the last few months but not significantly.