Covered Call Trades for March

Next friday (1/18/2011) is the closing date for February options.  I like to begin looking ahead at the next month (March) at this time.  I have already started a short list of potential trades.  This list is most at-the-money and slightly out-of-money calls.  I have included the S&P Ranking as well as the volatility measures on the chart.  Here is the list. with company profiles below.

Click image to enlarge.

 
Medco Health Solutions, Inc. (Medco) is a healthcare company. It provides clinically-driven pharmacy services designed to improve the quality of care and lower total healthcare costs for private and public employers, health plans, labor unions and government agencies of all sizes, and for individuals served by Medicare Part D Prescription Drug Plans. During the fiscal year ended December 26, 2009 (fiscal 2009), the Company administered 695 million prescriptions. In January 2010, the Company completed the acquisition of DNA Direct Inc. In April 2008, Medco acquired a majority interest in Europa Apotheek Venlo B.V. (Europa Apotheek), which provides mail-order pharmacy services in Germany. In 2009, Medco formed a joint venture with United Drug plc, a pan-European healthcare provider, to provide home-based pharmacy care services in the United Kingdom for patients covered by the country’s National Health Service.
Vertex Pharmaceuticals Incorporated (Vertex) is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases. Telaprevir, the Company’s lead drug candidate, is an oral hepatitis C protease inhibitor and a new class of antiviral treatments in clinical development that target hepatitis C virus (HCV), infection. Telaprevir is being evaluated in a registration program focused on treatment-naïve and treatment-failure patients with genotype 1 HCV infection. VX-770, the lead drug candidate in its cystic fibrosis (CF), program is being evaluated in a registration program that focuses on patients with CF who have the G551D mutation in the gene responsible for CF. Vertex is conducting a number of Phase IIa clinical trials of its earlier-stage drug candidates. On March 12, 2009, Vertex acquired ViroChem Pharma Inc. (ViroChem).
Oshkosh Corporation (Oshkosh) is a designer, manufacturer and marketer of a range of vehicles and vehicle bodies. The Company partners with customers to deliver solutions that move people and materials at work, globally and around-the-clock. During the fiscal year ended September 30, 2010 (fiscal 2010), the Company operated in four segments: defense, access equipment, fire & emergency and commercial, which consisted of 73%, 13%, 9% and 5%, respectively, of the Company’s net sales. The defense business is conducted through the operations of Oshkosh. The access equipment business is conducted through its wholly owned subsidiary, JLG Industries, Inc. and its wholly owned subsidiaries (JLG) and JerrDan Corporation (JerrDan).
Apache Corporation (Apache) is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. In North America, its exploration and production interests are focused in the Gulf of Mexico, the Gulf Coast, East Texas, the Permian Basin, the Anadarko Basin and the Western Sedimentary Basin of Canada. Outside of North America, it has exploration and production interests onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea (North Sea), and onshore Argentina. It also has exploration interests on the Chilean side of the island of Tierra del Fuego. It holds interests in many of its United States, Canadian and other international properties through subsidiaries, including Apache Canada Ltd., DEK Energy Company (DEKALB), Apache Energy Limited (AEL), Apache North America, Inc. and Apache Overseas, Inc. In June 2010, Devon Energy Corporation sold its interest in Gulf of Mexico shelf assets to the Company.
Rio Tinto Plc (Rio Tinto) is an international business involved in each stage of metal and mineral production. The Company produces aluminium, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc and zircon). With production mainly from Australia and North America, the Company operates in more than 50 countries. The Company’s businesses include open pit and underground mines, mills, refineries and smelters, as well as a number of research and service facilities. The Company consists of a number of wholly and partly owned subsidiaries, joint ventures and associated companies. It has five product groups and two global support groups: aluminium, copper, diamonds, minerals, energy, iron ore, exploration and technology & innovation. In July 2010, Rio Tinto plc completed the divestment of its Alcan Packaging business with the sales of its two subsidiaries, Medical Flexibles and Alcan Beauty Packaging.
Alaska Air Group, Inc. (Air Group) has two subsidiaries: Alaska Airlines, Inc. (Alaska) and Horizon Air Industries, Inc. (Horizon). The Company, through these subsidiaries, provides passenger air service to more than 22 million passengers per year to more than 90 destinations. It also provides freight and mail services, primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, Alaska operated an all-jet fleet with an average passenger trip length of 1,180 miles. Horizon operates turboprop and jet aircraft, and its average passenger trip length was 356 miles as of December 31, 2009.
Johnson Controls, Inc. (Johnson Controls) provides automotive interiors. For buildings, the Company offers products and services that optimize energy use. It also provides batteries for automobiles and hybrid electric vehicles, along with related systems engineering, marketing and service expertise. Its building efficiency business is engaged in designing, producing, marketing and installing integrated heating, ventilating and air conditioning (HVAC) systems, building management systems, controls, security and mechanical equipment. In addition, the building efficiency business provides technical services, energy management consulting and operations of entire real estate portfolios for the non-residential buildings market. It also provides residential air conditioning and heating systems and industrial refrigeration products. July 2010, the Company acquired an additional 40% of a power solutions Korean joint venture.

Leave a Comment