Hi Scott, Thanks for joining me. I do a little of everything with my Covered call plays. I started doing a few covered calls about two years ago. Got really serious about it last summer. The real eye opener for me is that the most my main CC port has been down the last 8 months has been less than 1%. I love the downside protection.
There are some stocks I want to continue to hold and I sell out of the money calls on. Others I sell either ITM or OTM and don't care if I get taken out or not. Well, actually I do care as if I get takemn out, I realize my full gain I was looking for.
You know, I have looked at several Covered calls sites. Most seem to deal with high premium selections and have little regards for current technicals or fundmentals. If I could get a conservative 3% per month (43% compounded annually) I would be very happy.
Right now I am high on energy plays. I like doing energy and then adding a ultra short etf to the mix to hedge the long holdings. I like solar here now that they have been beaten up. Sure you could get high premiums when they were twice the price but what good is it to get a 10% premiums when the stock could easily drop 20%. Anyone new to covered calls is going to get discouraged quick after acouple losses like that.
So, I tend to look mainly at strong stocks in the oil sector that will give me 4 to 5%.
I will make a list of stocks I currently have sold calls on and post them here.
AI
