I have rarely found a decent option premium on a DGI stock. Some of the tech stocks that began paying recently often are good for options: MSFT, INTC, QCOM.
It depends on sector and timing. In the consumer defensive sector, it seems rare to find something decent. I am short a few QCOM tight now. Industrials, Healthcare, Energy, Financials, Consumer Cyclical, Financial - one can usually find something with decent premiums some examples of ones that I use or are currently short: CVX, CMI, BA, ACN, SBUX, IBM, MCD, HD, SJM, PII, WBA, UNH, TROW, UNP...
The premiums tend to get fat when the company or sector is under siege. Some of them, I stopped using just because the underlying security was too expensive. (Then I may write some call. I rarely write puts if I don't already have a position in the underlying.
I got burned in 2008 and 2009, but the majority of the assignments are trading well above the exercise price. |
