Wouldn’t it be nice to make money from income taxes instead of just paying income taxes? Obviously, we could all become CPA’s and make money from preparing tax returns, but maybe adding up receipts and digging through the tax code just doesn’t sound too interesting.
| Signup now for PowerOptions free 14-day trial |
Preparing income taxes is big business, and it’s not going away, no matter how many times we all say “flat tax”.
| Signup now for PowerOptionsApplied 30-day risk free trial |
There aren’t a lot of big players in the income tax preparation business segment. H&R Block (HRB) is the oldest, biggest and best well known company in this space. Intuit (INTU), a fairly new comer on H&R’s block, provides the TurboTax tax preparation software. And pulling up the rear is the Jackson Hewitt Tax Service (JTX) and the privately held Liberty Tax Services.
H&R Block is currently mired in the subprime lending meltdown with its Option One Mortgage subsidiary, which H&R Block is attempting to spin-off or sell.
Recently, Jackson Hewitt was accused by the U.S. government of participating in a tax-fraud scheme. As it appears right now, it is only a small number of Jackson Hewitt franchises involved in the proliferation of the fraudulent tax scheme, but the bad news has negatively impacted Jackson Hewitt’s stock price.
Intuit is nicely positioned in the tax return software business segment. Intuit’s future looks bright with more and more people becoming computer savvy and willing to prepare their own tax returns using TurboTax. All software businesses should be wary of being eaten up by the big gorilla Microsoft (MSFT), but Microsoft doesn’t appear to be a threat for Intuit in the near future.
Using PowerOptions stock options search tools we discovered the following covered calls stock options positions for HRB, INTU and JTX.
| PowerOptions covered call search | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JTX | 28.42 (+1.89) | JTXDF | 07 APR 30.0 (18) | 0.70 | 2.5 | 2.5 | 8.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTU | 27.47 (+0.04) | IQUDY | 07 APR 27.5 (18) | 0.55 | 2.0 | 2.0 | 2.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HRB | 21.50 (+0.13) | HRBDX | 07 APR 22.5 (18) | 0.40 | 1.9 | 1.9 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The JTX covered calls position has a very nice % if unchanged potential return of 2.5% (18 days), but JTX should probably be avoided until the tax fraud scheme news plays itself out.
The HRB position has a % if unchanged potential return of 1.9% and a % if assigned potential return of 6.6%. The % if assigned potential return requires the price of the stock to increase to or above the strike price of the call option, which is $22.5. There is some risk with this one with HRB’s exposure to the subprime-lending catastrophe, so this position should also be handled with care.
The INTU position has a % if unchanged potential return of 1.9% and a % if assigned potential return of 6.6%. Of the three positions, this is probably the safest one to play at this time.
Competitors:
Competitors for HRB include: Intuit Inc. (INTU), Jackson Hewitt Tax Service Inc. (JTX), and Liberty Tax Service (private).
Competitors for INTU include: H&R Block, Inc. (HRB), Microsoft Business Solutions (private), The Sage Group plc (private), Blackbaud Inc. (BLKB), and Jackson Hewitt Tax Service Inc. (JTX).
Competitors for JTX include: H&R Block, Inc. (HRB), Intuit Inc. (INTU), and Liberty Tax Service (private).
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] CPA, TurboTax, Option One Mortgage, Liberty Tax Service, Microsoft Business Solutions, The Sage Group plc, BLKB, Blackbaud Inc., HRB, H&R Block Inc., INTU, Intuit Corp., JTX, Jackson Hewitt Tax Service Inc., MSFT, Microsoft Corp., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]