A number of our potential trades from last month ended up returning solid potential profits for the month of June. Today in the PowerOptions weblog, we will take a retrospective look at these companies and look for nice trading options in the coming months.
Here’s the list of winners we will be taking a closer look at:
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| Selected June Winners | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SYMBOL | Purchase $ |
Close $ |
Call Option |
Potential Profit |
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| EDU | $48.35 | $48.50 | 07JUN $45.00 | 5.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BWLD | $79.65 | $83.61 | 07 JUN $80.00 | 4.60% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CENX | $53.79 | $54.39 | 07 JUN $55.00 | 5.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACH | $30.50 | $38.65 | 07 JUN $30.00 | 4.90% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AA | $37.98 | $41.17 | 07 JUN $37.50 | 4.20% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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A Little Bit About the Companies:
EDU:
New Oriental Education and Technology Group provides private English and other foreign language training in the United States, the People’s Republic of China, and Commonwealth countries. The fool.com website recently called the stock “one of China’s buried treasures.”
Competitors for EDU include: Princeton Review Inc. (REVU), and Kaplan, Inc. (private).
BWLD:
Buffalo Wild Wings Inc provides quick and casual dining service, as well as serves bottled beers, wines, and liquor. The stock recently split and Fortune magazine recently ran an article on the company with the title, “Where Wings are Hot, and the Stock’s Hotter.”
Competitors for BWLD include: Applebee’s International Inc. (APPB), Carlson Restaurants Worldwide, Inc. (private), and Hooters of America, Inc. (private).
CENX:
Century Aluminum through its subsidiaries, produces aluminum in North America. BMO Capital Markets analyst Victor Lazarovici downgraded Century last week, but accompanied the downgrade with the following statement, “However, we continue to believe aluminum’s fundamentals remain solid and prices are rising, underpinning higher earnings and cash flow for producers.” Does this mean higher or lower stock price? You be the judge.
Competitors for CENX include: Alcan, Inc. (AL), Alcoa Inc. (AA), and Ormet Corporation (private).
ACH:
Aluminum Corporation of China LTD. engages in the production and sale of aluminum in the People’s Republic of China. The fool.com website touted this stock yesterday in its article entitled, “3 Stocks Hooking Up.” Also, metals and emerging markets are in vogue right now with investors.
AA:
Alcoa Aluminum engages in the production and sale of primary aluminum, fabricated aluminum, and alumina worldwide. At the forefront of the recent news surrounding this company was BHP Billiton Ltd’s potential takeover bid. Lately, though, many analysts are publicly expressing their skepticism on whether any deal will take place.
Competitors for AA include: Alcan, Inc. (AL), Hydro Aluminium AS (private), RUSAL (private), Accuride Corp. (ACW), Aleris Intl. Inc. (ARS), BHP Billiton Ltd. (BHP), Ball Corp. (BLL), Century Aluminum Co. (CENX), Carbo Ceramics Inc. (CRR), Novelis Inc. (NVL), Quanex Corp. (NX), and Precision Castparts Corp. (PCP).
Potential Trades:
Below we take a look at July covered calls on our June blog stocks. All of the following option trades have 33 days until expiration. These trades were discovered using the powerful suite of option search tools found at PowerOptions.
| PowerOptions covered call search June successes (33 days) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
OPTION | Strike Info |
Opt Bid |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
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| EDU | $51.69 | EDUGJ | 07 JUL $50.00 | $3.40 | 6.60% | 3.50% | 3.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BWLD | $41.63 | BQUGH | 07 JUL $40.00 | $2.80 | 6.70% | 3.00% | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CENX | $55.17 | CQLGK | 07 JUL $55.00 | $2.60 | 4.90% | 4.60% | 4.60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACH | $41.24 | ACHGH | 07 JUL $40.00 | $2.85 | 7.40% | 4.20% | 4.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AA | $41.88 | AAGV | 07 JUL $42.50 | $1.70 | 4.20% | 4.20% | 5.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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] Kaplan, Inc., Carlson Restaurants Worldwide, Inc., Hooters of America, Inc., Ormet Corporation, Hydro Aluminium AS, RUSAL, AA, ALCOA Inc., ACW, Accuride Corp., AL, Alcan Inc., APPB, Applebees International Inc., BHP, BHP Billiton Ltd., BLL, Ball Corp., CENX, Century Aluminum Co., CRR, Carbo Ceramics Inc., NX, Quanex Corp., PCP, Precision Castparts Corp., covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]