This is a covered write on Deere and Company (DE) for the December 2012 expiration. Deere & Company provides products and services primarily for agriculture and forestry worldwide. The company operates in three segments: Agriculture and Turf, Construction and Forestry, and Credit. OPTION STRATEGY: Look at the December 72.5 covered call. For each 100 shares of …
Covered Call trade on Advanced Auto Parts (AAP). OPTIONS STRATEGY: Look at the December 2011 70 covered call. For each 100 shares of Advance Auto Parts (AAP) stock you buy, sell one December 2011 70 covered call option for a 67.06 (69.31 – 2.25) debit or better. That’s potentially a 4.38% assigned return. This stock also …
Covered Call Recommendation on Yahoo (YHOO) STRATEGY: Look at the November 2011 14 covered call. For each 100 shares of Yahoo (YHOO) stock you buy, sell one November 2011 14 covered call option for a $12.30 (13.50 – 1.20) debit or better. This is potentially a 13.8% assigned return. Yahoo does not pay a dividend. …
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 …
Covered Call Recommendation on Berkshire Hathaway B Shares Read More »
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 …
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 …
Defensive Covered Call Strategy on Apache Corp (APA) Read More »
Covered Call Recommendation on Novartis Call Strategy: Look at the January 55 covered call. For each 100 shares of Novartis AG (NVS) stock you buy, sell one January 55 covered call option for a 51.62 (55.77 – 4.15) debit or better. That’s potentially a 6.5% assigned return. The technicals for NVS are bearish with a …
Under Armour (UA) is trading at $69.73. The volatility is high so premiums are being richly rewarded. Additionally, this covered call is in-the-money to provide more downside protection. The summary of this covered call recommendation is below. The UA October ’11 COVERED CALL with a 67.50 strike price could potentially yield a 7.6% return if UA …
