Stock Option Investment Advice

3.2% to 61.3% September Results for the PowerOptions Blog

September was a good month for bear positions on the housing sector (this is where we potentially returned 61.3%) and for Biotech and automakers. Daimler Chrysler and GM have seen over 10% in stock price gains over the past month.

Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_09_24_SepResults.mp3

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Will the good and bad times continue for these stocks? It’s difficult to say, but if they do we can identify attractive trades using the PowerOptions SmartSearchXL engine.

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What we are going to do in the blog today is to simply run covered call investing and bear call credit spreads on the stocks listed in the results tables below. The third and forth tables are potential trades for the coming months on these winning stocks.

Winning trades:
These are by no means all of the winning trades identified in the PowerOptions weblog for the month of September, but these are some of the more intriguing positions yielding a potential profit.

Covered Call September Results
Symbol Strike
Info
%
Potential
Profit
VNDA 07 SEP 15.0 (36) 15.4  
MNTA 07 SEP 10.0 (36) 9.1  
ACAD 07 SEP 15.0 (36) 7.9  
WFMI 07 SEP 45.0 (36) 7.2  
WFMI 07 SEP 40.0 (36) 2.2  
GM 07 SEP 32.5 (39) 4.9  
DAI 07 SEP 80.0 (39) 3.2  
(For more details click the ticker symbol above)
Bear Call Credit Spread
Symbol Sell
Strike
Info
Buy
Strike
Info
%
Potential
Profit
CFC 07 SEP 20.0 (37) 07 SEP 25.0 (37) 61.3
CFC 07 SEP 22.5 (37) 07 SEP 25.0 (37) 51.5
CFC 07 SEP 20.0 (37) 07 SEP 22.5 (37) 47.1
CFC 07 SEP 22.5 (37) 07 SEP 27.5 (37) 44.9
HOV 07 SEP 12.5 (37) 07 SEP 15.0 (37) 35.1
(For more details click the ticker symbol above)

Potential Trades:
All of the following trades were found using PowerOptions‘ SmartSearchXL feature for covered call investing trades and bear call credit spreads.

Covered Call Search – September Performers
Symbol Stock
Price
OPTION Strike
Info
Option
Bid
Net
Debit
%
Dnsd.
Prot.
%
If
Unch.
%
If
Asgnd
MNTA 11.75 (-0.27) QMPKV 07 NOV 12.5 (54) $1.65 10.1 14 16.3 23.8
ACAD 16.09 (+0.36) AQYKW 07 NOV 17.5 (54) $1.30 14.79 8.1 8.8 18.3
MNTA 11.75 (-0.27) QMPJV 07 OCT 12.5 (26) $0.90 10.85 7.7 8.3 15.2
ACAD 16.09 (+0.36) AQYJW 07 OCT 17.5 (26) $0.85 15.24 5.3 5.6 14.8
VNDA 14.64 (-0.38) QDXKC 07 NOV 15.0 (54) $1.50 13.14 10.2 11.4 14.2
GM 35.31 (+0.37) GMKU 07 NOV 37.5 (54) $2.05 33.26 5.8 6.2 12.7
GM 35.31 (+0.37) GMJU 07 OCT 37.5 (26) $1.25 34.06 3.5 3.7 10.1
WFMI 45.44 (+0.41) FMQKI 07 NOV 45.0 (54) $2.91 42.53 6.4 5.8 5.8
DAI 96.74 (+1.36) DAIKS 07 NOV 95.0 (54) 5.5 91.24 5.7 4.1 4.1
(For more details click the ticker symbol above)
Bear Call Credit Spread – September Winners
Symbol
Last
Price
Sell
Option
Expire
Info

Bid
Buy
Option
Expire
Info

Ask

Potential
Return
%

Net
Credit

Break
Even
HOV 11.59 (-0.71) HOVKV 07 NOV 12.5 (54) $1.30 HOVKC 07 NOV 15.0 (54) $0.65 35.1 $0.65 $13.15
HOV 11.59 (-0.71) HOVKV 07 NOV 12.5 (54) $1.30 HOVKW 07 NOV 17.5 (54) $0.30 25 $1.00 $13.50
HOV 11.59 (-0.71) HOVJV 07 OCT 12.5 (26) $0.75 HOVJC 07 OCT 15.0 (26) $0.25 25 $0.50 $13.00
HOV 11.59 (-0.71) HOVJV 07 OCT 12.5 (26) $0.75 HOVJW 07 OCT 17.5 (26) $0.10 14.9 $0.65 $13.15
CFC 19.41 (-0.20) CFCKX 07 NOV 22.5 (54) $0.70 CFCKE 07 NOV 25.0 (54) $0.40 13.6 $0.30 $22.80
HOV 11.59 (-0.71) HOVKC 07 NOV 15.0 (54) $0.55 HOVKW 07 NOV 17.5 (54) $0.30 11.1 $0.25 $15.25
(For more details click the ticker symbol above)

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.

[tags] bear call credit spreads, covered call investing, covered call investment strategy, investment strategy, poweroptions [/tags]

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