Category: Stock Option Investment Advice

Both the House and Senate overwhelmingly passed the American Housing Rescue and Foreclosure Prevention Act of 2008 last July and which was subsequently signed by President Bush. The law is intended to help nearly 400,000 homeowners avoid foreclosure and save struggling mortgage companies Fannie Mae (FNM) and Freddie Mac (FRE). The law aims to help at risk borrowers, increase the role of the FHA (Federal Housing Authority), permanently increase conforming loan limits, give grants to states to buy foreclosed property, and create an affordable housing trust fund.

Over the last ten years, the following stocks have experienced significant returns; surprisingly, the list only includes one famous name, Apple (AAPL). The other stocks are relatively unknown to the general public:

As our country celebrates our freedom on the 4th of July with patriotic displays of fireworks and parades, you may want to consider putting together a patriotic portfolio. Americans are investing in the USA. Especially during “The War on Terror” our thanks go out to the brave US soldiers around the world protecting our freedom and providing our security. A way to ensure that our troops have the supplies and equipment they need is to invest in the defense sector. There are great buying opportunities in Lockheed Martin (LMT), General Dynamics (GD), Curtis Wright Corp. (CW) and Orbital Sciences Corp. (ORB), who supply many products for defense equipment. Another good investment is Allied Technologies (ATK), who supplies ammunition, as well as aerospace and defense products to the US government. Some very attractive covered call investing positions are available for these companies. For example, an August $100 strike covered call for…

Google, Inc., (GOOG) a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers. Its automated search technology helps users to obtain instant access to relevant information from its online index. The company’s solutions provide targeted advertising and Internet search solutions, as well as intranet solutions via an enterprise search appliance. Its products and services for users include Google.com for search and personalization, which provides Google Web Search, Google Image Search, Google Book Search, Google Scholar, Google Base, Google Webmaster Tools, Google Finance, Google News, Personalized Homepage and Search, Google Co-op and Custom Search, Google Video, and YouTube.

Altera Corporation (ALTR) San Jose, California is the pioneer of programmable logic solutions, enabling system and semiconductor companies to rapidly and cost effectively innovate, differentiate and win in their markets. Altera combines the programmable logic technology originally invented in 1983 with software tools, intellectual property, and customer support to provide high-value programmable solutions to approximately 14,000 customers. New announcements include the corporation’s first quarter sales of $336.1 million, up 4% from the fourth quarter of 2007 and up 10% from the first quarter of 2007. First quarter net income was $83.9 million, $0.27 per diluted stock market share, up from net income of $65.5 million, $0.20 per diluted share, in the fourth quarter of 2007. So, when you are investing in stock options, these are things you want to look for.

No investment strategy is right for all investors. Investors should research and investigate alternative investment strategies. Listed below are ten reasons why an investor might consider using covered call investing as part of an overall investment strategy. 1. Supplement Income: – CD rates too low? Are stock dividends not producing enough income? Investors can write covered call options to supplement their income. Even on a stable stock, an investor could potentially receive a 6% annual return on their covered call premiums.

Houston based Atwood Oceanics (ATW) announced a strong gain in second quarter profit and revenue. The offshore oil field service provider said its profits jumped 32 percent during the quarter ending March 31, while its revenue spiked 20 percent. Net income for the quarter was $41.8 million, or $1.30 per share. During the same quarter in 2007, the company earned $31.8 million, or $1.01 per share. Revenue rose to $113.5 million, from $94.3 million during the second quarter last year. These are all strong numbers that are certainly please to investors holding the company in their trading portfolio or personal stock portfolio.

Kaiser Aluminum (KALU) announced that its first quarter profit more than doubled. For the first quarter, which ended March 31, the company said its net earnings were $39.1 million, which amounts to $1.92 per share. During the same quarter a year ago, the company earned $17.1 million, or $0.85 per share. This was huge growth for the company and likely appeals to long-term stock trading strategies. The note that should have really inspired stock trading, however, was the fact that analysts had only expected $1.06 in earnings per share for the company. Kaiser said it soundly beat estimates because of gains from hedging of investments. Revenue for the company climbed to $399 million, from $392.2 million. Analysts had expected revenue to come in at $378.6 million.

Fast food giant McDonald’s (MCD) announced a 24% jump in first quarter profits for its January through March quarter. The company is one of several international businesses that have benefited from geographic diversity and the weak dollar, in light of US economic challenges. The company, based on Oakbrook, Illinois, a suburb of Chicago, said it earned $946.1 million during the quarter, which amounts to 81 cents per share. This was a sharp jump from last year’s first quarter that saw $762.4 million, or 62 cents per share. It really inspired stock trading, however, by increasing revenues to $5.6 billion. This six percent revenue growth easily topped analyst estimates, which always leads to traders grabbing a stock for their trading portfolio.

Houston based Mitchum Industries (MIND), a geophysical equipment maker, announced fourth quarter and annual 2008 record earnings results. The company smashed analyst estimates of 27 cents per share for its fourth quarter by earning 32 cents per share. Net income was $3.3, which smashed last year’s fourth quarter earnings of $730,000 and 7 cents per share. Revenue for the company nearly doubled, going from $11.1 million in the fiscal 2007 fourth quarter, to $20.8 million for fiscal fourth quarter 2008. According to company executives, a 38% rise in its core equipment leasing business was a primary catalyst for the revenue and earnings growth. After hours stock trading showed investors were satisfied with the results. Stock investing drove the company’s shares up nearly 5% after hours on top of a 1.7% rise during the day leading up to the announcement.