Throughout May and June the PowerOptions blog reported on industry news and potential covered call trades with July expiration dates. Many of our ideas would have yielded a 0-6% return, but the proposed trades shown in the table below would have potentially returned 6-15.8%.
An audio podcast of this article is available at: poweropt.com/podcasts/2007_07_24_Results.mp3
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Granted, the Sirius trade was a bit of a gamble in potentially returning 15.8%. The stock was at a rock bottom $2.84 when we looked at it and it now rests at $3.21. We do not revisit Sirius (although there are still a lot of potentially lucrative trades available) because of the volatility.
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Trades, for the most part returning over 6%, for the other companies are suggested in the second table. Many of the stocks are still being touted by analysts. Foster Wheeler, although it has experienced rocket ship 20%-plus growth since we last reported, is still on Jim Cramer’s short list of stocks.
China Mobile and China Aluminum may continue on their northward journey as analysts continue to promote investing in overseas markets.
|PowerOptions Blog Results for July Covered Calls|
|Clean Harbor Inc||CLHB||$47.72||$51.45||07 JUL $50.00||7.10%||7.10%|
|Foster Wheeler Ltd.||FWLT||$97.41||120.98||07 JUL $100.00||8.40%||8.40%|
|Vimpel Communications||VIP||$99.69||111.5||07 JUL $100.00||6.80%||6.80%|
|China Mobile LTD||CHL||$47.95||$60.23||07 JUL $50.00||6.00%||6.00%|
|Sirius Satellite Radio||SIRI||$2.84||$3.21||07 SEP $3.00||15.80%||15.80%|
|Dolby Laboratories Inc.||DLB||$33.89||$34.89||07 JUL $35.00||6.70%||6.20%|
|Aluminum Corp. of China Ltd.||ACH||$33.60||$49.68||07 JUL $35.00||8.90%||8.90%|
The table below shows some ideas for September on these companies. The Clean Harbor and Dolby trades are interesting because these two companies have not taken off like some of their brethren in the first table. All of the potential trades listed below have 61 days until expiration. The trades were found using the option search tools offered at www.poweropt.com.
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|Covered Call Search|
|Clean Harbor Inc||CLHB||51.45||QPBIK||07 SEP 55.0 (61)||$1.75||3.4||3.5||10.7|
|Foster Wheeler Ltd.||FWLT||120.98||UFBIW||07 SEP 125.0 (61)||$7.00||5.8||6.1||9.7|
|Vimpel Communications||VIP||111.5||VIQIC||07 SEP 115.0 (61)||$5.60||5||5.3||8.6|
|Foster Wheeler Ltd.||FWLT||120.98||UFBID||07 SEP 120.0 (61)||$9.40||7.8||7.5||7.5|
|Vimpel Communications||VIP||111.5||VIQIB||07 SEP 110.0 (61)||$8.00||7.2||6.3||6.3|
|Aluminum Corp. of China Ltd.||ACH||49.68||ACHIJ||07 SEP 50.0 (61)||$3.50||7||7.6||8.3|
|Dolby Laboratories Inc.||DLB||34.29||DLBIG||07 SEP 35.0 (61)||$1.70||5||5.2||7.4|
|China Mobile LTD||CHL||60.23||CHLIL||07 SEP 60.00 (61)||$3.40||5.6||5.6||5.6|
CLHB – Clean Harbor collects, transports and disposes of hazardous waste in the United States. This is a sizable company. This company has a strong corollary to the strength of big oil. They do quite a bit of tank cleaning and environmental construction.
Competitors for CLHB include: Waste Management, Inc. (WMI), Philip Services Corporation (private), Veolia ES Technical Solutions LLC (private), and OMNI Energy Services Corp. (OMNI).
FWLT – Foster Wheeler is down a bit, to around $113, since this chart was produced. This does not affect the relevancy of the company’s mission which is primarily concerned with oil and gas engineering and construction projects.
Competitors for FWLT include: Fluor Corporation (FLR), Halliburton Co. (HAL), Bechtel Group, Inc. (private), Fuel Tech NV (FTEK), and Jacobs Engineering Group Inc. (JEC).
VIP – Vippel Communications provides wireless telecommunications services in Russia, Kazakhstan, Ukraine, Uzbekistan, and Tajikistan.
Competitors for VIP include: Golden Telecom Inc. (GLDN), Mobile Telesystems OJSC (MBT), and Rostelecom OAO (ROS).
ACH – Succinctly put, Aluminum Corporation of China produces and sells aluminum in the People’s Republic of China.
Competitors for ACH include:
DLB – This company sells audio products for the motion picture, broadcast, music, and video game industries among other things. You’ve likely seen their logo at the movies or when playing video games.
Competitors for DLB include: DTS Inc. (DTSI), Sony Corp. (SNE), and SRS Labs Inc. (SRSL).
CHL – China Mobile provides mobile telecommunication and related services in Mainland China and Hong Kong
Competitors for CHL include: China Unicom Ltd. (CHU), China Telecommunications Corporation (private), China Netcom Group Corp. (Hong Kong) Ltd. (CN), and Hutchison Telecom. Intl. Ltd. (HTX).
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.
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