Barron's: Selling Covered Calls
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Date updated:08-04-2007

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.

symbol name last price % change open
  • +
  • AA
    Alcoa
  • $10.52
  • 0.00%
  • $9.88

No Analysis added

People owning AA also tend to own: AIGIBMINTCJNJJPMKOMSFT

TheStreet.com Rating: C- What is this?

  • +
  • GM
    Gm
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning GM also tend to own: AAAMEATICAGCEGCMICOL

TheStreet.com Rating: E+ What is this?

  • +
  • CAT
    Caterpillar Inc.
  • $37.45
  • 0.00%
  • $37.51

No Analysis added

People owning CAT also tend to own: AAALLAPCBABACCCBH

TheStreet.com Rating: C What is this?

  • +
  • AXP
    American Express
  • $24.71
  • 0.00%
  • $24.80

No Analysis added

People owning AXP also tend to own: AIGALLBACBRK-BCCOFFNM

TheStreet.com Rating: C What is this?

  • +
  • JPM
    Jpmorgan Chase &
  • $34.50
  • 0.00%
  • $35.07

No Analysis added

People owning JPM also tend to own: AAAIGIBMINTCJNJKOMSFT

TheStreet.com Rating: C What is this?

  • +
  • C
    Citigroup Inc
  • $3.51
  • 0.00%
  • $3.61

No Analysis added

People owning C also tend to own: AIGBACPWRDISFWLTGSHAL

TheStreet.com Rating: D What is this?

Portfolio not tracked!

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