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Covered Calls
Covered Calls


We go one step further then most. I do not look for covered calls unless they meet a certain criteria. This list will change so keep watching.
1. Daily volume must average over 150000 shares.
2. I want a 20% or better return on a buywrite or I won't do them.
I teach other things to look for in our course.
10/19/99 Ameritrade amtd trading around 16 7/8 the nov 17 1/2 call is going for about 1 3/4 this is 21% return but if you are called out it is 26% wow!
11/10/99 Ameritrade amtd trading around 18 1/2 the Dec 17 1/2 call is going for about 3 even with the 1.00 loss in the play this is still over 20% on margin.
11/10/99 Cmgi trading around 103 the 130 March call is going for about 8 1/2 this is just under 20 % but if you are called out in 4 months this is almost a 95% return in 4 months!
12/13/99 mxtr trading around 5 1/8 the 5 january call is going for about 1 this is about a 34 % in one month.
12/13/99 cmgi trading about 210 the january 210 call is going for about 36 this is over 30 % the Dec 210 are going for 14 1/2 this is 14% in 4 days!!!
03/10/00 eggs trading about 9 1/2 the march 10 call one week out is going for about 1/2 thats over 11% for one week.
03/18/00 "AND" trading around 12 1/4 the 12 1/2 call for April is going for about 2 1/8 this is over 34%. But could be not a good time however. The stock ran up and is holding in a new range at 12 support if it holds this could be a good play.
03/18/00 amtd trading around 20 3/8 the April 20 call is going for about 2 3/4 it is forming support at 19 or so but this even with the slight loss of 3/8 is over 20 %.
03/19/00 dbcc trading around 8 3/8 the 7 1/2 April call going for 1 1/2 over 20% even with the loss.
05/10/00 AND trading around 6 1/2 The June 7 1/2 calls going for 3/4 thats a 23% return.
05/10/00 PSFT trading about 12 1/4 The May 12 1/2 calls are 7/8 and the June 12 1/2 are 1 1/2 thats 14 % in a week and 24% for June!
05/21/00 OMKT trading about 10 1/4 June 10 calls going for about 1 15/16 thats over 30% in a month even with the 1/4 loss!!
07/12/00 E-Trade EGRP trading about 16 1/2 June 17 1/2 call going for about 1 1/2 thats 18 % pluss another 1 pt if you are called out!
Remember all rates of return are figured on margin, and only show if the stock does not fall. Do your research befor you trade. We are only showing these as examples and do not recommend them.
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