Category: Stock Option Trading News

In the blog article, “Wal-Mart – Generic Drugs – Options Investing”, we analyzed the generic drug industry in light of Wal-Mart’s (WMT) introduction of $4 generic drugs. In article, “Generic Drug Investing Returns +1.3% in Nov.”, we showed the profitability of the strategy, and in article, “Generic Drug Investing – Returns Cool +4.6% in Jan 07”, we selected covered calls positions for February of 2007. We only found one position for PRX for February of 2007, but it generated a very nice return of +3.8% in only 24 days!

BJ Services (BJS) has received a 9 of 10 rating from MSN’s stock rater algorithm and Jim Cramer in last Friday’s lightning round excitedly told viewers, “Holy cow is this business on fire…” Insider trading provides a positive sign as well, a company director, William White, purchased nearly $140,000 of stock on January 30th. Cramer did pull back a little on BJS saying he preferred Transocean (RIG) to BJ Services.

Applied Materials (AMAT) is up 18.5% in the last 6 months. AMAT did $9.17 billion in sales and $1.52 billion in income in the last 12 months — about twice the industry average on both counts. The company’s profit margin is currently at 16.2%, beating the industry average by over a percentage point. The company’s debt to equity ratio is a miniscule 0.06 compared to a 0.18 industry average.

Hovnanian (HOV) gained 6% Thursday and around 5% on Friday after Bank of America upgraded the homebuilder to a buy rating from neutral. An increase in interested homebuyers is helping to stabilize sales at the company, Bank of America analyst Daniel Oppenheim suggested in a recent note to investors.

General Cable’s (BGC) stock decreased a little more than one percent on average volume Monday as the cable supplier announced a $70 million contract with the Northeast Utilities Services Co. and United Illuminating Co.

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 and in article, “Bearish Trading REITs Returned 7.5%” we illustrated the profitability of the bear call credit spreads strategy for REITs.

In a previous article, “Wal-Mart (WMT) Stuck in a Retail Rut”, we analyzed retail stores for a covered calls stock options strategy since fuel costs were declining and retail shoppers would have more money to spend for Christmas, etc. Every single position selected was profitable and 9 of the10 positions returned the maximum profit for a gigantic average return of +4%. In article, “Retail Investing – Returns Gigantic +4% in Nov.”, we again selected positions for stock options expiration in January of 2007, and every position was fully profitable returning an average of +4%, in only 53 days!

Swiss-based pharmaceutical company Novartis (NVS) reported a 23 percent increase in fourth-quarter profit on Thursday. The company attributes much of the growth to the sales of its top two drugs Diovan and Glivec as well as successes in its generic drug unit.

Yesterday, this blog touted Apple (AAPL) – primarily because of their sexy new iphone. But Jim Cramer says no to lawsuit-beleaguered Steve Jobs’ empire. So, today let’s pull up our sofas and potato chips and dissect what the popular cable sage has delivered. However, we must insist that the first step in Mr. Cramer’s process ought to be “listen to PowerOptions’ Podcast” as an antecedent to getting rich.

Trimble Navigation (TRMB) announced late last month its software will be used in the establishment of a national Global Positioning System, or GPS, infrastructure network in the south of Poland. The company’s network will be utilized by professionals in the surveying and engineering fields to obtain high accuracy (with resolution down to the centimeter) global positioning without the use of base stations or specialized software. Experts say this will significantly increase efficiency and productivity.