Below is the option strategy for a covered write on Agilent Technologies (A). This will produce monthly investment income over a 30 day time period. OPTION STRATEGY: Look at the December 2011 39 covered call. For each 100 shares of Agilent Technologies (A) stock you buy, sell one December 2011 39 covered call option for …
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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 …
STRATEGY: Covered Call Recommendation on COV Look at the January 2012 47.50 covered call for an income investment. For each 100 shares of Covidien PLC (COV) stock you buy, sell one January 2012 47.50 covered call option for a 44.13 (48.43 – 4.30) debit or better. That’s potentially a 7.6% assigned return. Plus, COV is expected to pay one dividend …
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 …
Monthly Income Investment Using Covered Call Trade on Deere and Company (DE) Read More »
STRATEGY: Look at the December 22 covered call. For each 100 shares of United Rentals (URI) stock you buy, sell one December 22 covered call option for a 20.46 (24.81 – 4.35) debit or better. That’s potentially a 7.5% assigned return. The technicals for URI are bearish with a weak downward trend. The stock is under accumulation with support …
It is time to begin looking at the next month (May) covered calls at this time as April expired on Friday. 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 …
So what strategies can you implement with weekly options? Well, just about any strategy you do with the longer dated options, except now you can do it four times each month. For us premium sellers who like to take advantage of the rapidly accelerating time-decay curve in an option’s final week of its life, the …
