Covered Call - Strategies
By the Covered Call Research Team
8 Covered Call Tables
Cut your research time by 90% or more! As a member of our Covered Call Service you will have access to
8 covered call tables. This is the same service you can find at the
well-respected Covered Call .Com website as Covered Call .Com is one of our affiliated sites. Covered Call . Com has been providing covered call writers with
data online since December of 1997.
[Click here for a real quick summary.]
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"I have been using your service for 5 years and I continue to enjoy working with your info."
Lou Misiano
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The eight (8) covered call tables are loaded with information to help you research covered call opportunities.
We save you time and help you make money by reviewing all stock and option combinations by using a sophisticated
proprietary screening process which, in part, reviews each possible covered call candiate for the following
characteristics:
possible returns if called or if not called
open option interest
option volume
earnings announcement dates
earnings per share growth
Price/Earnings ratio
technical analysis
industry segment
industry ranking
analyst rankings
dividends
Our tables are then developed by our Covered Call Team only after a review of the above criteria.
This team then reduces the number of stocks that will be included on the covered call tables each night down to
just a few covered call opportunities from the thousands of possible covered call plays. The characteristics of each of the covered call tables are set forth below...
Out-Of-The-Money Covered Calls
Stocks listed under the Out of The Money ("OTM") covered call table in most cases will have analysts recommending the stock as a strong buy or buy; have some earnings (or are projected to have some earnings); and are ranked in or near the top half of their industry.
In-The-Money Covered Calls
Stocks profiled on the In-The-Money covered call table will have options trading at or in the money.
Thus, for example a stock selling at $17 1/4
that has the $15 Strike Price Call Option trading at $3.50 would be included in this list.
In this example, as long as the stock stays above $15 (the strike price), you will get called out for
9% return. Note, the standard calculation for determining the return is set forth below.
Step 1: 17.25 - 3.50 = 13.75 (out of pocket cost)
Step 2: 15 (assumed price at expiration) - 13.75 (out of pocket) = 1.25 (profit)
Step 3: 1.25 (profit) / 13.75 (out of pocket) = 9% return
The Out-Of-The-Money and In-The-Money stocks generally: have analysts recommending the stock as a strong buy
or buy; have some earnings (or are projected to have some earnings); and are ranked in the
top half of their industry.
The Out-Of-The-Money and the In-The-Money tables were our first tables. However, our members wanted more, so next came the Div-In and Div-Out Tables...
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