• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 6 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 14 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 14 hours Why I Think Natural Gas is the Logical Future of Energy
  • 2 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 13 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 7 hours Get on Those Bicycles to Save the World
  • 10 hours Iraq war and Possible Lies
  • 1 day Can “Renewables” Dent the World’s need for Electricity?
  • 1 day Satellite Moons to Replace Streetlamps?!
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 21 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 8 hours EU to Splash Billions on Battery Factories
  • 1 day Can the World Survive without Saudi Oil?
Alan Ellman

Alan Ellman

Qualifications/Background Information: 1- Authored three books on Covered Call Writing. 2- Produced a 4-part DVD and CD Series based on stock & option seminars 3-…

More Info

Trending Discussions

Why NRGY Energy Offers Investors a Great Opportunity

One of the best performing stocks in the Oil & Gas industry over the past 6 weeks has been NRGY Energy, ticker symbol NRGY. Here are the top 10 performers in that time frame:

top 10 energy stocks over past 6 weeks

The chart below shows the 3-month performance of this security as compared to the market benchmark, the S&P 500:

3-month performance chart of NRGY

We check the option chain to make sure the equity trades at or above $15 per share, trades at least 250,00 shares per day and, of course, has options associated with it. The options chain below shows that all criteria are met:

options chain for NRGY

We see the published bid price is $0.35 and the actual last trade was for $0.42. Let’s assume we can negotiate a bid sale price of $0.40. Since there are 3 weeks remaining until the November contracts expire, here is what this all means. We will receive $40 per contract for purchasing NRGY @ $20 and agreeing to sell it for the same $20 at any time over the next 3 weeks. Let’s feed these stats into the Ellman Calculator:

the Ellman Calculator

Our 3-week return is 2% which annualizes to 33.2%. If the equity remains at or below $20 by expiration Friday (November 16th) we keep the stock and can sell another option the next month. If the price is higher than $20 by expiration Friday our shares are sold for $20 unless we buy back the option prior to 4PM EST on the 16th. Either way, we keep our 2%, 3-week return. For a free copy of the Ellman Calculator visit the “free resources” link on my web site.

By. Alan Ellman

(alan@thebluecollarinvestor.com)
www.thebluecollarinvestor.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News