Category: Stock Option Advisory

In a prevous article, “CME Buying CBOT”, we analyzed CME’s purchase of CBOT and we used PowerOptions stock options search tools to find some potentially lucrative covered calls stock options investments with stock options expiring in November of 2006. Every single position selected returned the maximum potential return for an average return of +3.9%, in just 32 days.

In the article, “Sewing Up Profits – Covered Call Investing”, we analyzed the retail fabric market and decided a covered calls stock options strategy was prudent for this segment in light of the popularity of hand made clothing by today’s teens. Two positions were selected for this strategy, and both were profitable returning an average of +2.5%. In article, “Sewing Covered Calls Returns Nice +2.5% in Dec 06”, we again selected retail fabric covered calls positions with options expiration in January of 2007 and the positions generated a nice +2.4% average return.

PowerOptions WeBlog identified several successful trades for the option expiration month of January. Below is a table showing some of the successful trades identified.

K-Swiss (KSWS) was featured prominently last week on Jim Cramer’s Mad Money and on the Motley Fool’s website. Cramer was bearish and the author of the Fool article, Selena Maranjian, was bullish. Who will prove to be right?

Alcoa Inc. (AA), a New York based aluminum producer, said yesterday its fourth-quarter profits increased 60 percent. The company cited strong aluminum prices and increased demand as chief among the reasons for the positive results.The company’s net income increased to $359 million from $224 million in the same period last year. The results included the savings from the elimination of 6,700 jobs. The jobs were eliminated as part of a restructuring initiative.

Precision Castparts Corp. (PCP) reached an all-time high Wednesday after an analyst with Credit Suisse raised the target price for the stock to $87. The stock closed Wednesday at $81.40.

Omni Energy Services Corp. (OMNI), an oil and gas exploration company said last week it has plans to purchase Charles Holston Inc., an environmental services company, for $23 million. Omni will use cash and promissory notes for the purchase. The deal is expected to close in the first quarter of 2007.

In a previous article, “Bearish Trading & REITs”, we outlined a bear call credit spreads strategy for Real Estate Investment Trusts (REITs). In the article, a bear call credit spreads position for Mills Corp. (MLS) was selected with a maximum return of +7.5%. In article, “Bearish Trading REITs Returned 7.5%” we selected another bear call credit spreads position for Mills Corp which generated a very nice return of +4.2% in only 57 days.

In a previous article, “FedEx (FDX) Delivering Profits – Covered Calls” we analyzed the package delivery business in light of the declining cost of fuel.Using PowerOptions powerful stock options search tools we found four positions with stock options expiring in December of 2006, two positions for Federal Express (FDX) and two positions for United Parcel Service (UPS). The average return for the positions was +1.4% in only 33 days.

Shares of International Business Machines Corp. (IBM) reached a new 52-week high of $96.06 on Monday, December 18th. This follows news reporting the computer giant won a large contract with the German government. Trading volume for IBM was also higher on Monday. The contract, initiated by the German parliament for networking, hardware and services, is valued at about $9 billion.