Covered Calls for Fun & Income

March 31, 2009

Covered Call Weather Report – March 31, 2009

Filed under: Covered Calls — Tags: , , , , — Jeff @ 6:54 AM

Partly cloudy with moderating temperatures.

Today I am feeling like a new-born lamb taking its first steps – a bit shaky. With that in mind, I will be looking at Covered Calls that are deep ITM, such as the example blow (from CallWriter Real Time Lists ™. I will be busy again this morning with personal matters (no, no plumbing projects today) and won’t be able to look until around noon – which is my preferred time anyway. The great thing about Covered Calls is that you don’t really have to time the market.

I haven’t tried this strategy yet, but you should check out the new page that I just put up called “CallWriter SuperPut Strategy Explained“. I plan to paper trade this strategy for a few months and I will report back the results in a future post.

BTO Stock

STO Option

Option Exp/Strike

Cost Basis

ITM Return

Downside Protection

PNC 26.92

PZHDX 6.00

APR/22.50

20.92

7.55%

22.9%

– Jeff

“Take calculated risks. That is quite different from being rash.” George S. Patton (1885 – 1945)

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