Covered Call Ideas for this week.
So getting some free time (ok... who am I kidding), so wanted to start up this forum again.
The theme for these are good companies to own, that you can write some premium on, will not be mad if they get called away, and as a bonus, all yield over 5% dividend!
1. STD - Banko Santader
Buy 100 @ 10.28.
Write 1 Sept 2011 @ 11.00 for $.40 premium,
Expected dividend of $.16 per share.
61 days till expiration.
Net cost $1984.95.
Profit if Unchanged $102.15. 5.15%, 30.79% annualized.
Profit if called - $246.15. 12.40%, 74.20% annualized.
Break Even $9.77, 4.97% downside protection.
2. LLY - Ely Lilly
Buy 100 @ 38.33.
Write 1 Sept 2011 @ 39.00 for $.42 premium,
Expected dividend of $.49 per share.
61 days till expiration.
Net cost $3799.95.
Profit if Unchanged $82.05. 2.16%, 23.88% annualized.
Profit if called - $149.05. 3.92%, 43.38% annualized.
Break Even $37.51, 2.14% downside protection.
Some non dividend paying Buy Writes
1. MTL - Mechel Steel
Buy 100 @ 24.73.
Write 1 Aug 2011 @ 25 for $1 premium,
33 days till expiration.
Net cost $2381.95
Profit if Unchanged $91.05. 3.82%, 42.28% annualized.
Profit if called - $118.05. 4.96%, 54.82% annualized.
Break Even $23.82, 3.68% downside protection.
AI
