Teva Pharmaceutical Industries Ltd (TEVA)

[JLS]

TEVA trading at bottom of pattern.

Most likely will trade higher next week (assuming pattern continues). However, the pattern says it won't trade much higher than $12.50 (extrapolating the upper blue line).

I initiated trades on this stock near the end of July. I'm currently on my third trade for this cycle. The method I follow all the time is to buy a stock; sell weekly CCs against it; then repurchase the stock if assigned then write more Calls. Without reinvesting earnings, the volatility of this stock suggests an annual return of about 80% while using this CC method.

But I reinvest earnings when the income allows buying an additional 100 shares (which is needed if I want to sell an additional Call option). That expansion of holdings (AKA compounding) makes this CC method capable of annual gains much higher than 80%.

Qualification: this only works for stocks with predictable behavior.