Barron's: Selling Covered Calls Portfolio - Stockpickr! Your Source for Stock Ideas

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
$13.43
-0.30%
$13.68

No Analysis added

People owning AA also tend to own: AIG IBM INTC JNJ JPM KO MSFT

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: CME ICE ISE SAM CBA TM MS

TheStreet.com Rating: No Rating What is this?

CAT
Caterpillar Inc
$60.06
+0.17%
$60.76

No Analysis added

People owning CAT also tend to own: AA ALL APC BA BAC C CBH

TheStreet.com Rating: C+ What is this?

AXP
Amer Express Inc
$40.05
+0.93%
$39.95

No Analysis added

People owning AXP also tend to own: AIG ALL BAC BRK-B C COF FNM

TheStreet.com Rating: C What is this?

JPM
Jp Morgan Chase C
$44.32
+0.34%
$44.34

No Analysis added

People owning JPM also tend to own: AA AIG IBM INTC JNJ KO MSFT

TheStreet.com Rating: B- What is this?

C
Citigroup Inc
$4.16
-0.48%
$4.25

No Analysis added

People owning C also tend to own: ACE BAC CB COP CVX DIS GS

TheStreet.com Rating: D What is this?

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