October was a successful month for the blog. Many of the trades we listed on the blog came in profitable. The trades listed in the following table are some of the trades making money for the month of October.
An audio podcast of this article is available at: poweropt.com/podcasts/2007_10_23_OctTrades.mp3
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In this blog we will look ahead and research some covered called trades involving these companies under the assumption the stocks will continue their upward trend. This may be an erroneous assumption, so do your homework before acting on any of these trades.
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For a few of the companies, we will dig into the news and see what they’re up to. But first, the successful trades.
|OCT Covered Call Success|
|Vanda Pharma. Inc.||VNDA||07 OCT 15.0 (36)||15.4|
|GM||GM||07 OCT 37.5 (26)||10.5|
|Huaneng Power Intl. Inc.||HNP||07 OCT 45.0 (53)||9.3|
|Research In Motion Ltd.||RIMM||07 OCT 85.0 (46)||8.5|
|Garmin Ltd.||GRMN||07 OCT 105.0 (46)||8.2|
|Apple Computer Inc.||AAPL||07 OCT 145.0 (46)||7.4|
|China Netcom Group Corp. (Hong Kong) Ltd.||CN||07 OCT 50.0 (46)||7.3|
|Biovail Corp. Intl.||BVF||07 OCT 17.5 (53)||7.1|
|Abraxis BioScience||ABBI||07 OCT 22.5 (39)||7.1|
|Keryx Biopharmaceuticals Inc.||KERX||07 OCT 10.0 (39)||6.3|
|China Telecom Corp. Ltd.||CHA||07 OCT 60.0 (46)||6.1|
|Millicom Intnl. Cellular S.A.||MICC||07 OCT 85.0 (46)||5.9|
|Vimpel Communications||VIP||07 OCT 25.0 (46)||5.7|
|Leucadia National Corp.||LUK||07 OCT 45.0 (46)||5.7|
|Huaneng Power Intl. Inc.||HNP||07 OCT 40.0 (53)||4.2|
|Enerplus Resources Fund||ERF||07 OCT 40.0 (53)||3.7|
|Vodafone AirTouch PLC||VOD||07 OCT 30.0 (53)||3.6|
|Boeing Co.||BA||07 OCT 95.0 (52)||3.4|
|Wyeth||WYE||07 OCT 45.0 (39)||3.3|
Below is a table of results for these companies for the month of November. These options expire in 25 days. Most of the higher yielding choices are scandalously out of the money.
Vanda Pharma. Inc. (VNDA) – investments in this company are speculative even in the best of times. Right now, the company has submitted an application to the FDA for a schizophrenia drug and was lauded by the Motley Fool website as an all-star one-star stock; this means it’s a crumby stock, according to analysts, which has been acting anything but crumby. Schizophrenic, you might say.
Garmin (GRMN) – This is a wonder-boy stock if there ever was one. This company was vaulted on to the commercial scene with the technology it developed from years of luxuriant Government contracts. Now, the company has unparalleled GPS technology that can be squeezed into anything from a cell phone to your Prius’ dash. The company has some competition from private competitors, but most of the news is about what latest product is trying to cram GPS into itself (Currently, it’s Palm’s suite of phones and PDAs).
China Telecom Corp. (CHA) – It’s the most populous country in the world, it’s filled with tech savvy citizens, and they all want to talk to each other about the latest black market DVD. This company’s nearest competitor is about half its size and the stock has gained about 150% in the past year and about 105% since this blog mentioned it in March. Will it keep growing? A lot of people are guessing yes.
Huaneng Power Intl. Inc. (HNP) — It’s the most populous country in the world, it’s filled with tech saavy citizens, and they all want to waste electricity watching their black market DVD. This company’s nearest competitor is about twice its size (Korean Power-KEP) and the stock has gained about 75% in the past year and about 60% since this blog mentioned it in March. Will it keep growing? A lot of people are guessing yes.
We were getting a little repetitive, so it’s time to take a look at the chart.
|Power Options Covered Call Search Data – OCT Success|
|VNDA||16.51 (-0.43)||QDXKW||07 NOV 17.5 (25)||1||15.51||6.1||6.4||12.8|
|GRMN||120.53 (+5.35)||RZJKF||07 NOV 130.0 (25)||4.1||116.43||3.4||3.5||11.7|
|CHA||88.29 (+2.83)||CHAKS||07 NOV 95.0 (25)||3.2||85.09||3.6||3.8||11.6|
|HNP||52.10 (+0.32)||HNPKK||07 NOV 55.0 (25)||2.45||49.65||4.7||4.9||10.8|
|GRMN||120.53 (+5.35)||RZJKE||07 NOV 125.0 (25)||6||114.53||5||5.2||9.1|
|RIMM||124.53 (+11.15)||RULKV||07 NOV 130.0 (25)||5.15||119.38||4.1||4.3||8.9|
|MICC||105.20 (+18.49)||CQDKB||07 NOV 110.0 (25)||3.6||101.6||3.4||3.5||8.3|
|CHA||88.29 (+2.83)||CHAKR||07 NOV 90.0 (25)||5||83.29||5.7||6||8.1|
|CN||64.17 (+1.14)||CNKM||07 NOV 65.0 (25)||3.9||60.27||6.1||6.5||7.8|
|GM||38.35 (+0.71)||GMKH||07 NOV 40.0 (25)||1.26||37.09||3.3||3.4||7.8|
|GRMN||120.53 (+5.35)||RZJKD||07 NOV 120.0 (25)||8.3||112.23||6.9||6.9||6.9|
|RIMM||124.53 (+11.15)||RULKE||07 NOV 125.0 (25)||7.2||117.33||5.8||6.1||6.5|
|MICC||105.20 (+18.49)||CQDKA||07 NOV 105.0 (25)||5.8||99.4||5.5||5.6||5.6|
|HNP||52.10 (+0.32)||HNPKJ||07 NOV 50.0 (25)||4.7||47.4||9||5.5||5.5|
|CHA||88.29 (+2.83)||CHAKQ||07 NOV 85.0 (25)||7.7||80.59||8.7||5.5||5.5|
|GRMN||120.53 (+5.35)||RZJKC||07 NOV 115.0 (25)||11||109.53||9.1||5||5|
|RIMM||124.53 (+11.15)||RULKD||07 NOV 120.0 (25)||9.8||114.73||7.9||4.6||4.6|
|GM||38.35 (+0.71)||GMKU||07 NOV 37.5 (25)||2.39||35.96||6.2||4.3||4.3|
|CN||64.17 (+1.14)||CNKL||07 NOV 60.0 (25)||6.6||57.57||10.3||4.2||4.2|
|VIP||30.62 (+1.54)||VIQKF||07 NOV 30.0 (25)||1.8||28.82||5.9||4.1||4.1|
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.
[tags] CHA, China Telecom Corp. Ltd., GRMN, Garmin Ltd., HNP, Huaneng Power Intl. Inc., VNDA, Vanda Pharma. Inc., covered call investment strategy, investment strategy, poweroptions [/tags]