Wednesday, June 17, 2009

Establish EMCOR Group Inc. Covered Calls

A new covered calls position was established today in the Covered Calls Advisor Portfolio(CCAP) with the purchase of EMCOR Group Inc (EME) covered calls as follows:

Established EMCOR Group Inc(EME) Covered Calls for Jul09:
06/17/09 Bought 500 EME @ $19.81
06/17/09 Sold 5 EME Jul09 $20.00 Calls @ $1.40

EMCOR Group, Inc. is an engineering and construction company that provides electrical and mechanical construction and facilities services worldwide. It engages in the design, integration, installation, start-up, operation, and maintenance of various electrical and mechanical systems; heating, ventilation, air conditioning, and refrigeration; fire protection systems; plumbing systems; and various industrial maintenance services.

Below is this Advisor's 'Buy Alerts' spreadsheet for EMCOR. It scores very well overall at 23.43 total points. Note: Any score above 20 is required for any company to be given further consideration as a potential covered calls investment.

Note: For expanded view, left click on the spreadsheet above.

Some potential results from this transaction are:
Absolute Return if Stock Price Unchanged at $19.81: +7.1%
Annualized Return If Unchanged (ARIU): +83.1%

Absolute Return if Exercised at $20.00: +8.0%
Annualized Return If Exercised (ARIE): +94.5%

Downside Breakeven Price Point: $18.41
Downside Breakeven Protection: 7.1%