In article, “Income Tax Investing – Covered Calls”, we investigated investing in covered calls stock options positions for companies involved in the income tax industry. Every position selected was profitable and the average return experienced was 5.2%, in only 18 days.
Uncle Sam’s not going away, so we searched for covered calls stock options positions for income tax related businesses and the results are shown below.
| Signup now for PowerOptions free 14-day trial |
| PowerOptions covered call search | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HRB | 22.78 (+0.14) | HRBFX | 07 JUN 22.5 (52) | 1.20 | 5.3 | 4.3 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTU | 29.37 (+0.24) | IQUFF | 07 JUN 30.0 (52) | 0.85 | 2.9 | 3.0 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Signup now for PowerOptionsApplied 30-day risk free trial |
We didn’t find a position for Jackson Hewitt for June options expirations, but just as well, as it might be better to avoid JTX until the alleged tax fraud scheme plays out. And H&R Block has been able to offload is subprime mortgage lending unit. Even though HRB unloaded its subprime-lending unit for less than it hoped, it successfully dodged a bullet with the divesture.
The HRB position is in-the-money with a potential return of 4.3% (52 days) and downside protection of 5.3%.
The INTU position is out-of-the-money with a maximum 5.2% potential return in the event the stock price increases to or above the $30 strike price of the call option at option expiration. Even if the stock price remains the same as stock options expiration, the INTU position will experience a 3% return.
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).
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] 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., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]