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.
-
AA
Alcoa Inc - $13.64
- +6.56%
- $12.90
No Analysis added
-
GM
Gm - $0.00
- N/A
- $N/A
No Analysis added
-
CAT
Caterpillar Inc - $58.94
- -1.24%
- $59.85
No Analysis added
-
AXP
Amer Express Inc - $41.04
- -0.63%
- $40.92
No Analysis added
-
JPM
Jp Morgan Chase C - $41.93
- -0.69%
- $42.15
No Analysis added
-
C
Citigroup Inc - $4.10
- 0.00%
- $4.08
No Analysis added
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I think that you've got to be lo...
12.03.09 | 21:01 PM Asked by
DogBones
A. I'm outrageously long and holding some
SH and DOG.
I was long in 2008 but there was a big
difference between then and 2009:
I didn't understand the magnitude of
what was to come.
I was stupid.
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holding out.
Thanks Vette, I wish you were my
brothere growing up!
Q.
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A. The only one I own : SLX,
too hard pick a winner out all of them
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