Captain Capitalism

The third Friday of July has come and gone, so it's time to make some more money. My pick this month is Frontier Oil Corporation (FTO). It's an oil refining company, and in this era of high demand and limited supply, this is a good area for long-term investment. In case you didn't know it, there is a defacto monopoly on refining in the U.S. - no state or local government will permit the construction of new refineries (ugly, pollution, etc), so existing refinery capacity is fixed and will increase in value as demand for petroleum products goes up. At a current price of $27.75 per share, its $30.00 calls for August pay $1.50, a yield of 5.4% over five weeks, or 56.2% at an annual rate. And if FTO happens to make its strike price, that's a total return of $3.75 per share, 13.5% for five weeks or 140.5% annualized.
Just one warning. All mid caps dealing with the oil industry bounce around like a ping pong ball, so if you have a weak heart, either don't follow the stock or don't buy it.