Covered Calls

[Joe Stocks]

CFC - one of the best covered call ops out there IMO. Buy at $5 and you can sell the may 5's for .50 for a 10% return. Sure it is a financial and could go lower, but with it sell for less that 20 cnte son the dollar it offers reasonable value, and BAC's $6.50 offer to be completed in 3Q puts some support under it.

Afraid the deal doesn't go through? Bing the largest mortgage company and picking up market share from others going out of business, I think CFC is only worth more than the current offer than less. The American public will always be buying and selling homes with mortgages. CFC has been writing good mortgages since the subprime issue hit so every loan they make makes their portfolio of bad loans look a wee bit less bad.