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Strategies & Market Trends : Calls and Puts for Income

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To: Bridge Player who wrote (1050)7/27/2007 2:28:03 PM
From: Jerome  Read Replies (2) of 5891
 
>>>Is it just possible all the sub-prime and bad loads business is a little overdone?<<<

I think that it is overdone...AHM paid a $.70 dividend today.

Any company in deep financial trouble would have either reduced the dividend or cancelled it.

For now I think the way to play AHM, is each month write covered call at high enough strike to gather in some income for the month.

As these companies report earnings in the next ten days we will have a better idea of the reality of the matter.

WFC is oversold, due this concern, in my opinion. The more they deny a problem exists, the more the stock tanks.
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