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Strategies & Market Trends : The Covered Calls for Dummies Thread
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From: Jerome2/17/2007 9:25:46 PM
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The week ahead....among the many stocks reporting earnings next week, two stand out as good option write.

1) HPQ 42.77

2) CHK 29.60

Since both are expected to post good earnings and a good outlook, my plan would be to buy both prior to the earnings announcement this week and then write the covered call when the earnings are released.

With HPQ I would use either the 42 1/2 or the 45 strike for March, depending how the market re-acts to the earnings.

As for CHK (Chesapeake energy) buy it under 30 and when they announce, write the covered call two months out to maximize the time value premium. (30 or 32 1/2 strike)

Note: I own both of these stocks and expect to use the above mentioned plan.

Nothing fancy.....just a simple plan......Jerome
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