Archive for August, 2007

Is Putin Itching for a Cold War? Defense Industry Covered Calls

Thursday, August 30th, 2007

Recently a shirtless and Siberian-vacationing Putin has been making headlines; partly because he has been running around shirtless in a land known more for its mosquitoes than for its sunshine and partly for resuscitating the cold war.

Using Common Value Investing Techniques to Find Option Trades

Thursday, August 30th, 2007

A stock picked using a value investing technique is a way a lot of investors find stocks they like for the long term. There are other favored techniques such as technical signals and trends, but investors often favor the valuation method as a way to get a dime stock for a nickel.

Americans Getting Fatter & Covered Calls

Tuesday, August 28th, 2007

A report by the Trust for America’s Health (TFAH) organization entitled, “F as in Fat: How Obesity Policies are Failing in America, 2007″, recently observed Americans in 31 states continue to exhibit higher rates of obesity as reported from the previous year. Mississippi clocked in with the highest obesity rate for the third year in [...]

CME Bull Put Spreads Strategy Returns +8.7% August 07

Monday, August 27th, 2007

In the article, “CME Buying CBOT”, we analyzed Chicago Mercantile Exchange’s (CME) purchase of CBOT with an eye for a bullish strategy for CME. We continued the CME bull put credit spreads saga and for the month of August the strategy experienced a very nice +8.7% return. This strategy has returned over 82% in only [...]

Covered Calls Based on Jim Cramer’s Buy Recommendations

Monday, August 27th, 2007

There has recently been a spate of media reports detailing the danger of chasing Jim Cramer recommendations. Ignoring this potentially sage advice to stay away, we dive headlong into the sometimes-erroneous hyperkinetic world of Jim Cramer to look at potential covered call trades on stocks he has recently plugged. (Note: Jim Cramer does not endorse [...]

Using PowerOptions’ Strategy Search Summary Tool to Find the Best Trades on a Stock

Wednesday, August 22nd, 2007

In the course of writing the PowerOptions blog we often find ourselves discussing news events and signals indicating a stock will move up or down. Rarely have we focused on the best way to exploit a position once we have a strong hunch on which way the underlying equity will go.

Biotech Stocks Uncharacteristically Calm in Volatile Market - Covered Call Opportunities

Monday, August 20th, 2007

Shares of large biotechnology companies posted only slight gains Friday, despite large gains in the market overall. Biotechs have been calm all week, experiencing on average only half the losses seen in the wider market, according to the American Stock Exchange’s Biotechnology Index.

Whole Foods and Wild Oats Merger Likely To Go Through - Organic Covered Call Opportunities

Friday, August 17th, 2007

In our June 6th article entitled, “What do Health Food Supermarkets and Satellite Radio Have in Common? The FTC, Mergers, and Option Investing Opportunities”, we reported on the potential deal between Whole Foods Market and Wild Oats. Now the stock of both companies has risen around 5% since then and the merger looks likely to [...]

Trouble for Housing Market and Mortgage Lenders - Bear Call Credit Spreads

Thursday, August 16th, 2007

News reports on Thursday stated mortgage lender Countrywide Financial (CFC) has siphoned off an $11.5 billion credit facility to fund its operations as they are having an increasingly hard time raising money. This news prompted Fitch (a stock rating agency) to lower Countrywide’s long-term default rating from A to BBB+.

Buick outshines Toyota in U. of Michigan Survey - Covered Calls on Major Auto Manuf.

Thursday, August 16th, 2007

Car buyers are more satisfied with American made cars than their traditionally technically superior Asian rivals. Many thought America’s rusted auto manufacturing sector was unlikely to ever catch Toyota and the other Japanese car-makers in customer satisfaction, but apparently it has happened according to a survey released Tuesday by the University of Michigan.