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EnglishTeach
 

Registered: Jun 2008
Posts: 33

 

07-20-12 08:34 PM

I'd like to ask for stock suggestions for covered calls. No problem if it's called away. Planning on selling 2 or3 month atm or slightly otm. Main goal is to beat dividend and/or interest rate returns.

Not asking for long lectures on why or why not use covered calls or how to max out... just looking for a few ticker symbols to check out.

Thanks for any ideas.

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diaoptions
 

Registered: Aug 2011
Posts: 392

 

07-20-12 08:50 PM


Quote from EnglishTeach:

Not asking for long lectures on why or why not use covered calls.



A long lecture isn't needed, just one sentence. Initiating a CC on newly bought stock severely caps potential gains while still exposing you to the downside.

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noob_trad3r
 

Registered: Nov 2008
Posts: 1736

 

07-20-12 08:53 PM

Just stick to SPY

forget other stocks.

I sell puts and covered calls on SPY

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EnglishTeach
 

Registered: Jun 2008
Posts: 33

 

07-20-12 09:05 PM

Never said I would be purchasing buy-writes. Purchasing the stock and selling the call, will almost always for me, be on different days.

SPY calls would be less risk, but not really as much return as I am expecting.

Any other?

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EnglishTeach
 

Registered: Jun 2008
Posts: 33

 

07-20-12 09:14 PM

Hrm, I take that back about the SPY. Looks like a roughly 11 to 14% return if your timing is decent.

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EnglishTeach
 

Registered: Jun 2008
Posts: 33

 

07-20-12 09:16 PM

So far I'm looking at JPM, ADM, PFE (but low volume), LLY, WOR, WFC (but seems overbought), SMP, POT, APL, or MSFT.

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