Best stock for covered call?

Discussion in 'Options' started by nwoptions, Mar 13, 2021.

  1. I think it is best to look at several factors:
    - stock that you are neutral/bullish.
    - relatively large market cap, so the stock is not easily manipulated.
    - relatively liquid options, i.e. small bid-ask spread.
    - reasonably prices, i.e. somewhat elevated implied volatility.

    Other factors to keep in mind:
    - are you selling ITM or OTM calls?
    - how far are the calls?

    I like to do some analysis using a simple spreadsheet. For example, I like AMD right now. My spreadsheet looks like this. Selling a call at $80 or $82.5 seems the best options.

    AMD.JPG
     
    #11     Mar 14, 2021