Energy Conversion Devices (NASDAQ:ENER) engages in the invention, engineering, development, and commercialization of new materials, products, and production technology in the fields of alternative energy and information technology in the United States. ENER's three primary business segments are involved in commercializing NiMH battery technology, manufacturing and selling photovoltaic products, and developing microelectronics, fuel cells, hydrogen storage, photovoltaic technologies, and machine building. It technology helps design products that have chemical, electrical, mechanical, and optical properties.
This week's search for new plays uncovered relatively few favorable candidates and since the OW Portfolio was already well above the target margin/collateral limit, we decided to adjust our search parameters to scan for issues that might be appropriate for long-term investors. A few popular companies emerged, however the one we found most appealing was ENER. The stock has reasonably "bullish" technical indications and the fundamental outlook improves with every new high in the price of crude oil. Traders who wouldn't mind owning the underlying issue may find this position offers an attractive risk-versus-reward ratio. It will not be listed in the OW Portfolio.
Fundamentals Chart Earnings Dates Analyst Ratings
Suggested (Bullish) Option Position:
Sell Put AUG 20.00 EQI-TD
Target Price = $0.85 Open Interest = 74
Potential Profit (5 contracts @ $0.85) = $425
Initial Margin (5 contracts) = $3,770
Return on Investment (max) = 6.2%
Cost Basis in Stock = $19.15
Days to Expiration = 55