Covered Calls

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.

 

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.

 

Just stick to SPY

forget other stocks.

I sell puts and covered calls on SPY

 

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?

 

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

 

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

 

Keyword: if. What if your timing isn't decent?

Good luck with your quest.

 

<<< 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. >>>

As I posted this morning under MY OPTION TRADES, I sold puts on $47.5 K for August.
Credit $0.90
Annualized % return.... 23 - 24%

If it gets put to me, it pays a nice dividend, and I'd be just as happy to sell a covered call on it, while collecting the dividend.
And I really like it's tech support in the $47.50 - $48 range,.... per the 2 year chart.

The next time it tests the $47.50 - $47.60 range, you could get the same $0.90 doing a buy/write.
Or just pick what ever price you like and sell a call at your leisure.

Company has too much debt, but overall this is a very good price for "K", both fundamentally and technically.
Plus it's a very good dividend for such a quality company.
However, if commodity prices continue to rise, the stock could come under additional pressure,... assuming the value buyers don't step in the next time it test $47.50.

 

When I was doing Covered Calls, I would go to callpix dot com

I also did some CCs on FAS... good premium, but risky.

I have left Naked Puts and Covered calls for Credit Spreads... The 4% this last month was nice,

Just trading NDX, RUT and some IWM

 

Altria (MO).

If you want a bit more diversification while still focusing on a particular sector, some of the State Street SPDR ETF are pretty liquid.

Things like: XLM, XLE, XLK, XLI, XLB, XLF, etc...