Stock Option Investment Advice

IBM Encounters Strong Growth Overseas

IBM (IBM) reported a better-than-expected 24 percent rise in preliminary quarterly earnings on Monday on strong sales in overseas markets. In the third quarter, IBM posted higher earnings as continued strength in the consulting and services unit offset a slide in hardware sales.

The company has been increasing its investments in developing countries with high growth rates, like China, India, Russia and Brazil. IBM disclosed last month that its employee head count in those countries is nearly 100,000, up from 70,000 a year ago. The Indian market alone was expected to contribute nearly $1 billion in revenue to IBM in 2007, up from $700 million the prior year.

Signup now for PowerOptions free 14-day trial

The largest American corporations now get more than half of their revenues from overseas markets. That is true of large technology companies like Intel (INTC), Hewlett-Packard (HPQ) and others. Yet IBM is the leader in the current globalization trend to tap overseas market and talent. Today, two-thirds of IBM’s sales and its workers are outside the United States.

Signup now for PowerOptionsApplied 30-day risk free trial

The surprise report ahead of IBM’s scheduled earnings release Thursday eased some investor concerns over how much the slowing U.S. economy had hurt the technology giant. In September IBM sparked some concerns when the company said sales to its biggest customer segment, the financial industry, fell as banks were buffeted by subprime/mortgage credit problems.

The company said quarterly earnings from continuing operations were $2.80 a share, up 24% from the year earlier’s $2.26, while revenue rose 10% to $28.9 billion with the weaker dollar attributed to six percentage points of the increase.

“The broad scope of IBM’s global business — led by strong operational performance in Asia, Europe and emerging countries — drove these outstanding results,” said Chairman and Chief Executive Samuel J. Palmisano. “IBM is well-positioned as we begin 2008 as a result of our global business reach, solid recurring revenue stream and strong financial position.

For fiscal 2007, IBM reported earnings rose 18% to $7.18 a share, including a five-cent gain on the sale of its printing systems division in the second quarter, on sales of $98.8 billion, representing 8% growth year-over-year.

Covered Call Options:
A large number of Option Trading Tricks are available on PowerOptions website for covered call investing. Using the search results on the website, the following Covered Call Investing options for IBM and its competitors were obtained.

PowerOptions covered call search
Option Strike
HPQ 44.34 (-0.71) HPQBV 08 FEB 42.5 (31) 2.8 6.3 2.3 2.3
HPQ 44.34 (-0.71) HPQBI 08 FEB 45.0 (31) 1.35 3 3.1 4.7
IBM 101.63 (-0.20) IBMBT 08 FEB 100.0 (31) 4.7 4.6 3.2 3.2
IBM 101.63 (-0.20) IBMBA 08 FEB 105.0 (31) 2.35 2.3 2.4 5.8
INTC 19.88 (-2.81) NQBD 08 FEB 20.0 (31) 0.83 4.2 4.4 5
(For more details click the ticker symbol above)

PowerOptions website gives a number of Covered Put Tips, Option Trading Tricks and Advanced Option Trading Articles. You can also Execute Option Trades Online at the website. It also provides Online Option Education to help you to make quick and informed decisions. A number of Covered Option Example and Covered Call Trading Example are provided on the website.

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. PowerOptionsApplied also provides a 30-day risk free trial of its service.

[tags] China, India, Russia, Brazil, Samuel J. Palmisano, HPQ, Hewlett Packard, IBM, Intl. Business Machines, INTC, Intel Corp., advanced option trading articles, covered call investing, covered call investment strategy, covered call options, covered call trading example, covered option example, covered put tips, execute option trades online, investment strategy, iron condor, online option education, option trading tricks, poweroptions, stock option trading, stock options [/tags]

Leave a Reply

Your email address will not be published. Required fields are marked *