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Strategies & Market Trends : Calls and Puts for Income

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To: Carl Worth who wrote (140)4/5/2007 5:41:37 AM
From: Jerome  Read Replies (3) of 5891
 
I do not trust it at all. Perhaps its meant for long term buy and hold situations. I always wondered why MSN did not come up with a better analytical system. I pay more attention to S&P's, or Morningstar's suggestion.

For covered calls I prefer stocks with good earnings, that are trading at the lower end of a well defined channel.

But others would have different criterion. Some of the energy stocks are ideal because they are undervalued by most metrics and have consistent powerful earnings. CHK fits this pattern. No matter what the price of natural gas, this company does very well and usually beats expectations.

This Friday will be six weeks from the May expiration for options. Six weeks seems to be the period of time when maximum call premium can be obtained relative to the share price of covered stock.

Thread viewers... post your favorites for this period of time
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