Dave,
It's really hard to know when news will come, and thus I would definitely write higher strike price covered calls, and only on the stock you're willing to see called away. Since QCOM is a volatile stock (or was in the past anyway), I suppose it's safer in a tax sheltered account, as you don't pay tax consequences on "selling" your stock if called away, and then perhaps can repurchase on a dip.
It does seem likely QCOM will trade in a range for a while, until momentum returns. My tendency, and I'm not an experienced cc writer, perhaps others can answer, would be to write significantly higher strike prices and without far-out expiry (unless, as some on QCOM thread note, they'd be happy to be called at that price because they could retire). July is too far away for me: it could easily go to 200 if there were some news, such as a deal w/ Nokia.
And what of Nortel? Any good news there? |
