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Strategies & Market Trends : Calls and Puts for Income

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Jim P.

Road Walker

From: Jerome	11/15/2013 8:10:11 AM
	2 Recommendations of 5891

Looking Ahead........Estimating what is likely to happen six months out is a big part the option business. Only a few of the positions I own are likely to be big winners in May or June of next year. BAC (Bank of America) has big upside for two reason. The number of lawsuits against the company are diminishing because of settlements. Two....a rise in the dividend (from .01 to____) will help drive up the stock price. I Plan to buy options, slightly in the money at least six months out. Probably the May or June at the 10 strike. MU (Micron)..... big upside if only half the anticipated profits show up. Micron is not an investor friendly company. Earnings announcements come out only a day or two in advance. The data provided is jumbled and hard to decipher. Lots of potential good data is not published. They routinely miss their own guidance. FCX (Freeport McMoRan) a very well balance basic materials company. Copper, Gold, Molybdenum, Silver Cobalt, and Oil. A very shareholder friendly company that returns extra capital to the shareholders on a regular basis 2010...$1.00, 2011..$.50, 2012...none,...2013....$1.31. This is above the current dividend if .31 per quarter for a 3.4% yield. FCX closed at $36.34 yesterday. Options six months out would be my choice. FRSL First Solar.....Solid earning but a lot of volatility on a day to day basis. For a short term trade very high risk. Long term trend is upward. Covered call premium is very high. Upside is huge and so is the heartburn. BP or RIG .. Both foreign oil stocks that will be increasing dividends and are currently undervalued compared to peers. I own lots of other stuff, but I'll be satisfied if they just show some modest upside and keep paying dividends.

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