The sub-prime lending mess has left some investors looking for a port in the storm. Some have turned to treasury notes and bonds, but for those bold enough to keep looking to stocks with a reasonable yield; tech stocks are looking increasingly more tantalizing.
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Technology analysts are predicting over 20% growth in technology stocks next year; this rate is the highest of the 10 major sectors in the S&P 500. Also, some of the bigger technology firms have been producing attractive earnings lately.
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It has taken some time for investors to begin to feel comfortable with technology stocks after the turn of the millennium pop. Some have suggested now is the time to get in as the companies have begin to hit their stride. Others, although warning of unpredictable results, have suggested financial companies are the bargain as they continue to produce good earnings at prices suppressed by investor concern.
Assuming the money flowing from the financial sector is seeking a more conservative situation in tech stocks may seem like a stretch, but it appears to be a view with growing mainstream support. Today, the blog will take a look at some solid covered call trades involving technology companies.
Covered Call Investing:
Covered call investing isn’t too tricky once an investor gets the hang of calculating their trading position and how the stock price will affect their potential profit. Covered call strategies and covered call trading tips can be found on the website producing these search results. An investor can visit the website at www.poweropt.com or can reach a trading expert at 1-877-992-7971. The trading experts are there to help our customers identify more profitable option trades by helping them better understand option strategies.
Potential Trades:
All of the following option trades have 46 days until expiration. The PowerOptions search was configured to only return companies in the technology sector.
| Covered Call Search | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Company Name |
Symbol | Stock Price |
Opt Sym |
Strike Info |
Opt. Bid |
Net Debit |
% Dnsd. Prot. |
% If Unch. |
% If Asgnd |
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| Research In Motion Ltd. | RIMM | 85.34 (-0.07) | RFYJX | 07 OCT 85.0 (46) | $7.00 | 78.34 | 8.2 | 8.5 | 8.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Garmin Ltd. | GRMN | 104.45 (+2.62) | RZJJA | 07 OCT 105.0 (46) | $7.60 | 96.85 | 7.3 | 7.8 | 8.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Apple Computer Inc. | AAPL | 144.16 (+5.68) | APVJI | 07 OCT 145.0 (46) | $9.10 | 135.06 | 6.3 | 6.7 | 7.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| China Netcom Group Corp. (Hong Kong) Ltd. | CN | 49.71 (+0.76) | CNJJ | 07 OCT 50.0 (46) | $3.10 | 46.61 | 6.2 | 6.7 | 7.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NVIDIA Corp. | NVDA | 52.74 (+1.58) | UVAJV | 07 OCT 52.5 (46) | $3.60 | 49.14 | 6.8 | 6.8 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| China Telecom Corp. Ltd. | CHA | 60.07 (+1.89) | CHAJL | 07 OCT 60.0 (46) | $3.50 | 56.57 | 5.8 | 6.1 | 6.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Millicom Intnl. Cellular S.A. | MICC | 85.77 (+1.44) | CQDJQ | 07 OCT 85.0 (46) | $5.50 | 80.27 | 6.4 | 5.9 | 5.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vimpel Communications | VIP | 25.26 (+0.86) | VIQJE | 07 OCT 25.0 (46) | $1.60 | 23.66 | 6.3 | 5.7 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leucadia National Corp. | LUK | 44.69 (+0.31) | LUKJI | 07 OCT 45.0 (46) | $2.10 | 42.59 | 4.7 | 4.9 | 5.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Poweroptions search engine has returned some compelling trades on companies including Apple and Research in Motion. Also Garmin, a leader in GPS technology, is on the list. Garmin is a company, which has seen its stock price rise from around $40 to over $100 in the last 12 months. Can they gain more? Perhaps, their P/E is still a respectably (for the industry) low 35.
Not that we like to toot our own horn, but those following the blog may remember a November 2006 article featuring Garmin entitled, “Garmin (GRMN) – GPS – Covered Calls”. At the time we wrote the article, the stock was at around $47. One of the suggested trades (why should we stop bragging now?) returned a potentially healthy 9.5%. The company’s P/E back then was around 24.
Competitors:
Competitors for RIMM include: Microsoft Corporation (MSFT), Motorola Inc. (MOT), Nokia Corp. (NOK), and palmOne Inc. (PALM).
Competitors for GRMN include: Magellan Navigation, Inc. (private), Navico Holding A.S. (private), TomTom N.V. (private), and Trimble Navigation Ltd. (TRMB).
Competitors for AAPL include: Dell Inc. (DELL), Hewlett-Packard Co. (HPQ), Microsoft Corporation (MSFT), Adobe Systems Inc. (ADBE), Avid Technology Inc. (AVID), Creative Technology Limited (CREAF), DivX Inc. (DIVX), Napster Inc. (NAPS), RealNetworks Inc. (RNWK), and Sonic Solutions (SNIC).
Competitors for CN include: China Mobile Limited (CHL), China Unicom Ltd. (CHU), China Telecommunications Corporation (private), and China Telecom Corp. Ltd. (CHA).
Competitors for NVDA include: Advanced Micro Devices Inc. (AMD), Creative Technology Ltd. (CREAF), and Intel Corp. (INTC).
Competitors for CHA include: China Netcom Group Corp. (Hong Kong) Ltd. (CN), China Unicom Ltd. (CHU), and China Mobile Communications Corporation (private).
Competitors for MICC include: Telefonica SA (TEF), Vodafone Group plc (VOD), and Telefónica Móviles, S.A. (private).
Competitors for VIP include: Golden Telecom Inc. (GLDN), Mobile Telesystems OJSC (MBT), and Rostelecom OAO (ROS).
Competitors for LUK include: Apollo Investment Corporation (AINV), Berkshire Hathaway Inc. (BRK-A), and The Blackstone Group (BX).
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.
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