Barron's: Selling Covered Calls

Description:

From Barron's 8-6-07:

The Street's trading recommendations have less to do with traditional volatility trading, and more to do with fundamental analysis of stocks. Recommended strategies include selling puts on mega-caps (stocks with market values of at least $40 billion), selling calls and buying stock.

Michael Schwartz, Oppenheimer's chief options strategist, recommends selling slightly out-of-the-money calls against Dow industrial components to buy stocks at a potential discount. "Market swings are creating opportunities to sell richly priced options against stocks," Schwartz says. "Some premiums are as much as 100% more than you would normally receive for selling calls."

Returns range from 9.6% to 17%, with holding periods of up to about seven months. Some of the highest returns in his covered-call list include these stocks.

Most Viewed Portfolios

View All

Articles

4 Stocks Under $10 Making Big Moves

05.30.12 | 03:01 PM

 WINDERMERE, Fla. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest p...

4 Stocks Under $5 Soaring Higher

05.30.12 | 02:56 PM

WINDERMERE, Fla. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percent...

More Articles
blog comments powered by Disqus
Get started with stockpickr! Get recommendations from thousands of mutual funds, hedge funds, and others. Enter your favorite stocks now!
brokerage partners
connect with Stockpickr
Fan us on FaceBook
Follow us on Twitter