In recent months the price of natural gas has plummeted and because of this price drop hedge fund Amaranth Advisors lost its investors over $6 Billion. The natural gas industry as a whole could be set up for a reversal.
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TheStreet.com (TSCM) – Spread Options
Options for TheStreet.com (TSCM), founded by Jim Cramer, are now available for trading. For investors who really like Jim Cramer, they can REALLY put their money where his mouth is. Using PowerOptions stock options search engine SmartSearchXL, we searched for bull put spreads on October 2, 2006.
Bearish Trading & REITs
In a previous article, “Bears are After the Homebuilders“, we analyzed the real estate market and in particular the homebuilders. In this article, we will analyze REITs (Real Estate Investment Trusts). A REIT is a company that owns and operates real estate properties generating income. For a company to be considered a REIT by the IRS, it must distribute a minimum of 90% of its taxable income to its shareholders via dividends.
Exercise by Exception Threshold Change
You may have been notified by your options broker of a recent change made to the OCC’s Exercise Threshold value for options expiration day. The SEC just accepted a proposal by the OCC to clear all options that are $0.05 In-the-Money at expiration. The previous Exercise Threshold Value had been $0.25 In-the-Money. So, what does this mean for stock options trading?
DJIA – Stock Price Resistance
The Dow Jones Industrial Average has been flirting with all-time record highs the last several days. In this situation, a bear call credit spreads stock options position may be a good strategy to consider.
Bond ETF Calendar Call Spreads – Sept. 06
In a recent article, “Bond ETFs, Calendar Calls and the Business Cycle“, we analyzed a Bond ETF calendar calls spread strategy. We will analyze the strategy once again for stock options expiration in September 2006.
Bear’s are After the Homebuilders
The real estate market and the homebuilders in particular have been enjoying a big party over the last few years as a result of interest rates being at historic low levels. Low interest rates allow more buyers to purchase a home, thereby increasing demand and price.
Recession Proof Calendar Call Spreads: Sept. 2006
In a previous article, “Recession Proof Calendar Call Spread Strategy “, we outlined a “recession proof” calendar call spread investment strategy. Using the recession proof stock symbols and PowerOptions new SmartHistoryXL options back testing tool we analyzed the results of a calendar options spreads strategy by searching for and selecting positions on August 21, 2006.
Recession Proof Covered Call Strategy: Sept. 2006
In a previous article, Recession Proof Covered Call Investment Strategy , we outlined a covered call investing strategy focusing on “recession proof” stocks. This strategy exhibited great results for the months of June, July and August returning +3.8%, +4.4% and 4.5%, respectively.
Company Earnings and Stock Options Straddle
In at least one way, the stock market is similar to flying an airplane, a tedious and boring long period of time followed by a very chaotic and stressful short period of time. A lot of the stock market’s chaotic moments are a result of companies reporting their quarterly earnings.