Covered Calls for Fun & Income

March 27, 2009

Covered Call Weather Report – March 27th, 2009

Filed under: Covered Calls — Tags: , , , , — Jeff @ 6:53 AM

Mostly clear and warmer.

Front Month (current month) Covered Call Writers arm your weapons!

Well the market has had a nice run-up this week. Optimism abounds. The talking heads are claiming the bottom is past and we are on our way up. Only time will tell.

This morning I was cruising through the lists at Call Writer and was particularly intrigued by the Under $10 list and In The Money Calls list. Both of these lists are providing huge downside protection (% of Downside protection = total call premium ÷ stock cost). This number is the one that I will be focusing on – looking for Covered Calls that meet my Trade Plan entry criteria and will give me at least 10% downside protection. In fact, the Under $10 list not only provides large downside protection but also Called Returns of 10% or more!

Will I enter any today? Maybe, but not until later in the day (I have personal business to take care of in the morning – it’s a small plumbing project at my daughter’s house). Mostly I will be focused on entry next week for current month Covered Calls.

– Jeff

“If you have knowledge, let others light their candles at it.” Margaret Fuller (1810 – 1850)

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