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 go through. Today, we will look again to both of these companies and explore potential Covered Call trading ideas.
Author: admin
Trouble for Housing Market and Mortgage Lenders – Bear Call Credit Spreads
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.
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.
CME Bull Put Spreads Strategy Returns +11.1% July 07
In 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 July, the strategy returned a very nice +11.1% return. This strategy has returned over 74% in only eight months.
Wireless Market: Google May Enter Cell Phone Market and Verizon Reports Profits
Earlier in the year the CEO of AT&T (T), Edward Whitacre, made remarks about how Google was getting a free ride on the network his company created and should be made to pay higher usage fees. Google (GOOG) was predictably troubled by the comments, since under their current operational model AT&T could do a number of things to disrupt their service and profitability.
Returns of 6-15.8% in July and Trading Ideas Potentially Returning Over 6% for September
Throughout May and June the PowerOptions blog reported on industry news and potential covered call trades with July expiration dates. Many of our ideas would have yielded a 0-6% return, but the proposed trades shown in the table below would have potentially returned 6-15.8%.
Three Attractive Global Infrastructure Stocks
Analysts are expecting global spending on energy and power infrastructure to grow nearly 10% a year for the next 5 years. Today we will look for values on companies in the global marketplace engaged in the construction of power plants and/or the associated electrical distribution equipment.
Overview of PowerOptions SmartHistoryXL Features and Covered Call Search
PowerOptions offers many tools to help options investors find lucrative trades and develop strategies. One of the most powerful and exciting tools it offers its customers is the SmartHistoryXL back testing tool.
How will Japanese Quake Affect Automakers?
On Monday, a 6.8-magnitude earthquake hit northwest Japan knocking out the production lines of a large auto part manufacturer. Reports suggest this could affect as much as 70% of Japan’s domestic auto industry.
Johnson and Johnson Posts 9% Increase on Second Quarter Profits
Johnson & Johnson’s (JNJ) acquisition of Pfizer and large increases in overseas sales contributed to a 9 percent increase in its second quarter profits announced early Tuesday. The company’s overall revenue saw an encouraging 13 percent rise.