With the economy’s recent anemic performance, we will continue a consideration of industries tending to hold up well during an economic slowdown.
Even when the economy is not doing very well consumers continue to go to the doctor, so healthcare is an industry that continues to perform ok in an economic malaise.
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A healthcare sector of particular interest is the home healthcare arena. This sector provides healthcare services to patients in their own places of residence. A home healthcare provider is generally the first healthcare measure implemented as a person begins to age and his or her health begins to fail. After a person’s health deteriorates to the point home healthcare is not a viable option, the person may be placed into a permanent health care facility.
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With the aging baby boomers, the home health care industry will only continue to get larger and larger over the next few decades. Using PowerOptions powerful stock options search tools we found the following covered calls positions for home health care companies.
| PowerOptions Covered Call Search | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot. |
%If Unch. |
%If Asgnd. |
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| AMED | 35.27 (unch.) | CQWFG | 07 JUN 35.0 (37) | 1.6 | 4.5 | 4.0 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LHCG | 28.46 (unch.) | HQCFF | 07 JUN 30.0 (37) | 0.9 | 3.2 | 3.3 | 8.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The LHCG covered calls stock options position has the largest potential return of 8.9% (37 days). To achieve the 8.9% return, the price of the LHCG stock must increase to or above the $30 strike price of the call option at option expiration.
Even if the AMED and LHCG positions remain unchanged at options expiration, the positions will return 4% and 3.3%, respectively.
The AMED covered calls stock options position has the largest downside protection at 4.5%. As long as the AMED stock price does not decline more than 4.5% at options expiration, the position will remain profitable.
Competitors:
Competitors for AMED include: Almost Family Inc. (AFAM), Gentiva Health Services Inc. (GTIV), and National Healthcare Corp. (NHC).
Competitors for LHCG include: Kindred Healthcare Inc. (KND), Health First, Inc. (private), and Personal-Touch Home Care, Inc. (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.
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[tags] Health First, Inc., Personal-Touch Home Care, Inc., GTIV, Gentiva Health Services Inc., KND, Kindred Healthcare Inc., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]