cover call

Covered Call Write on JP Morgan Chase (JPM)

Covered Call Recommedation on JP Morgan Chase (JPM) currently trading at $31.30. STRATEGY:  Look at the March 25 covered call. For each 100 shares of JP Morgan (JPM) stock you buy, sell one March 25 covered call option for a 29.40 (31.30 – 1.90) debit or better. That’s potentially a 5.4% assigned return in 32 days. Risk:   The technicals for …

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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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Risk-On Relief Rally with Amazon Covered Call

After another large decline last Thursday, equities  along with other “risk-on” assets appear poised for a relief rally that could  come early in the week as the markets begin anticipating and debating what  Federal Reserve Chairman Ben Bernanke may deliver in his Friday speech. It was  in last year’s speech from Jackson Hole when the …

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Monthly Income Investment Using Covered Call Trade on Deere and Company (DE)

Deere is currently trading at $73.83 and is rated a buy with 4 stars by S&P.  This is setting up nicely for a monthly income investment with a deep-in-the-money covered call. Strategy:  Look at the September 70 covered call. For each 100 shares of Deere (DE) stock you buy, sell one September 70 covered call …

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