Covered Call Trades

S&P Reiterates Strong Buy Opinion on Apple (AAPL)

S&P reiterates Strong Buy opinion on shares of Apple (AAPL) . AAPL announces the passing of Steve Jobs, its visionary and legendary co-founder and former CEO and Chairman. In August, he stepped down as CEO, concluding he could not sufficiently meet the rigors of the role, due to unfortunate health issues. One could argue that Jobs …

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Covered Call Recommendation on Berkshire Hathaway B Shares

Covered Call Recommendation on Berkshire Hathaway B (BRK.B) trading at $72.09 Strategy: Look to sell one October 2011 72.5 call for wach 100 shares of Berkshire Hathaway (BRK.B).  The net debit will be $69.89 (72.09-2.20) for an assigned return of 3.73% in 24 days or 56.8% annualized. Research Notes:  This is the first time Berkshire …

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Covered Call Recommendation on Humana (HUM)

Covered Call Recommendation on Humana (HUM) STRATEGY: Look at the October 2011 80 covered call.  For each 100 shares of Humana (HUM) stock you buy, sell one October 2011 80 covered call option for a 75.89 (78.19 – 2.30) debit or better.  This is potentially a 5.42% assigned return. The ex-date is 9/26/2011 for a $0,25 dividend per share …

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Defensive Covered Call Strategy on Apache Corp (APA)

This is a defensive in-the-money covered call recommendation on Apache Corporation setup as an income investment. Covered Call Strategy: Look at the January 85 covered call. For each 100 shares of Apache Corporation (APA) stock you buy, sell one January 85 covered call option for an 80.08 (94.63 – 14.55) debit or better. That’s potentially …

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