mikep
09-28-2006, 11:46 AM
Jim Cramer & Calendar Call Spreads - Big Booyah!
For those big Jim Cramer fans out there, we've found the strategy for you to put your money where Jim Cramer's mouth is. In this post we will analyze using Jim Cramer's bullish stock picks 30 days prior to position selection using a calendar call spread strategy. Using http://www.poweropt.com PowerOptions new back testing tool SmartHistoryXL, we selected positions on August 21, 2006 with all short stock options expiring on September 15, 2006 (September options expiration day).
The Jim Cramer calendar spread strategy returned a gigantic +33.2% return with an 80% success rate. And of course the pundits will say "but that's for only one month". Using this same strategy for options expiring in June, July, and August returned +6.9%, +19.9% and +6.5%, respectively. It should be noted, for each month different positions were selected as the dynamics of the market change from month to month.
To see more investing articles, including articles related to Jim Cramer, check out http://blog.poweropt.com PowerOptions blog
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a calendar call spread investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing calendar call spread options positions.
For those big Jim Cramer fans out there, we've found the strategy for you to put your money where Jim Cramer's mouth is. In this post we will analyze using Jim Cramer's bullish stock picks 30 days prior to position selection using a calendar call spread strategy. Using http://www.poweropt.com PowerOptions new back testing tool SmartHistoryXL, we selected positions on August 21, 2006 with all short stock options expiring on September 15, 2006 (September options expiration day).
The Jim Cramer calendar spread strategy returned a gigantic +33.2% return with an 80% success rate. And of course the pundits will say "but that's for only one month". Using this same strategy for options expiring in June, July, and August returned +6.9%, +19.9% and +6.5%, respectively. It should be noted, for each month different positions were selected as the dynamics of the market change from month to month.
To see more investing articles, including articles related to Jim Cramer, check out http://blog.poweropt.com PowerOptions blog
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a calendar call spread investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing calendar call spread options positions.