·        We can see as of the beginning of May the 20d-ema crossed over the 100d-ema and has been up-trending since. Also looks like we have moving average support above the 20d-ema.

·        MACD and the MACD Histogram are above the zero line, both positives.

·        The Slow Stochastic oscillator is above the 80% line.

·        The Volume is a little above AVG.

This stock can be added to our watchlists! 

Now let us see what kind of (ROO) we can get with this option?

CURRENT STOCK PRICE IS $32.93

Sell the June $30 Call for $3.40 

ROO = 340 – 293/3000 = 1.6% 2-week return = 41% annualized

Downside Protection = 293/3293 = 8.9%

Sell the June $35 Call for .90:

ROO = 90/3293 = 2.7% 2-week return = 71% annualized

Upside Potential = 207/3293 = 6.3%

Sell the July $30 Call for $4.60:

ROO = 460 – 293/3000 = 5.6% 6-week return = 47% annualized

DP = 293/3293 = 8.9%

Sell the July $35 call for $2.10:

ROO = 210/3293 = 6.4% 6-week return = 54% annualized

UP = 207/3293 = 6.3% 

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Ok now more on (BUCY): 

·     Bucyrus is in the business of manufacturing large machinery and mining equipment.

·     CEO Tim Sullivan tells Cramer that even though none of the stimulus money from the US has helped his company with new orders, one of the big players in new large machinery orders is China, (building airports, subways, and rails).

·     Commodity producers are now in a good position as there is a revival in commodities after a 4^th quarter pullback.

·     Lending is getting better for deposits on big machinery orders.

·     The CEO states that he is growing his company (making acquisition’s) with the extra cash on hand. 

·     Cramer says “this is the machinery company to own” Cramer likes BUCY. 

Thanks, 

Tony C.

 ****Congratulations to Tony’s band, Bigg Mouth, which had a song featured on NBC sitcom, Kath & KIM. In the “Wedding show BONUS Footage” the band’s song is featured in the last 1:36 minutes remaining of the clip, the DJ plays his song as the crowd goes wild! Here’s a link to that clip:

http://www.nbc.com/Kath_and_Kim/video/clips/wedding-video/783841/

Last week I posted a comment that Walmart (WMT) has decided to no longer report monthly same store retail sales statistics. On pages 137-138 of Cashing in on Covered Calls, I discuss the importance of avoiding companies that report such figures because of the volatility and inherant risk they generate. I refer to these companies as “banned stocks”. When  Cashing in on Covered Calls was published, I provided you with a list of these stocks on page 138. As we delete WMT from this list, I thought it would be prudent to update our group with the current list of banned stocks. I wouldn’t be surprised to find other companies following in Walmart’s footsteps down the road  thereby escaping the rath of the Blue Collar Investor world. Now the list:

__________________________________

ARO		DEST		COST
AEO		PSUN		DDS
ANN		RVI		DLTR
BBY		ROST		FDO
BWS		SKS		FRED
CMRG		SCVL		FINL
CTR		TLB		GOTT
CHRS		BKE		JCP
CHS		PLCE		KSS
DBRN		GPS		M
GYMB		BJ		SSI
JAS		BIG		SBUX
JOSB		BONT		SMRT
MW		CBK		TGT

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Other companies from the original list on page 138 of “Cashing in on Covered Calls” include

ANF, BEBE, CACH, CLE, CVS, DG, FD, HOTT, JWN, LDG, LTD, NWY, RAD, SHRP, TJX. WAG, ZUMX

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 Economic News of the Week:

Recent reports give hope to an economic recovery. Job losses in May numbered 345,000 less than the 520,000 expected. The ISM (manufacturing) Index was up for the fifth consecutive month. Construction spending was up (0.8%) for the second consecutive month. Personal savings saw its largest increase in 11 months, up 0.5% in April. Productivity (non-farm business) was up higher than expected and consumer debt declined farther than anticipated. Most economists are still concerned about unemployment and housing before committing to an official end to the recession. One thing I have noticed is that it is much easier to locate healthy stocks suited for covered call writing than it was at the end of 2008. My stock portfolio is nearly fully invested but I am still favoring I-T-M strikes for my option sales.

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Exit Strategies for Covered Calls Writing with Expiration Friday DVD:

The initial shipment of books has been sold out! Thank you so much for your continuing support. All orders taken by June 4th have been shipped. All orders taken on June 5th or later will be mailed on Monday or Tuesday when the new supply of books arrive.Use the following link for information and ordering:

http://www.thebluecollarinvestor.com/book.shtml

 ________________________________________________________

Videos now playing on the homepage:

1- Cover Call Option Example.

2- Education is Power- lists many of the topics stressed in the Blue Collar System to a background of surfer music.

Best in investing,

Alan (alan@thebluecollarinvestor.com)

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