covered calls

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C
ut your research time by 90% or more! As a member of our Covered Call Service you will have access to 8 covered call tables. This is the same service you can find at the well-respected Covered Call .Com website as Covered Call .Com is one of our affiliated sites.

The eight (8) covered call tables are loaded with information to help you research covered call opportunities. We save you time and help you make money by reviewing all stock and option combinations by using a sophisticated proprietary screening process which, in part, reviews each possible covered call candiate for the following characteristics:

possible returns if called or if not called
open option interest
option volume
earnings announcement dates
earnings per share growth
Price/Earnings ratio
technical analysis
industry segment (no biomed companies on our tables!)
industry ranking
analyst rankings
dividends

Our tables are then developed by our Covered Call Team only after a review of the above criteria. This team then reduces the number of stocks that will be included on the covered call tables each night down to just a few covered call opportunities from the thousands of possible covered call plays. The characteristics of each of the covered call tables are set forth below...

Out-Of-The-Money Table

Stocks listed under the Out of The Money ("OTM") covered call table in most cases will have analysts recommending the stock as a strong buy or buy; have some earnings (or are projected to have some earnings); and are ranked in or near the top half of their industry.

In-The-Money

Stocks profiled on the In-The-Money covered call table will have options trading at or in the money. Thus, for example a stock selling at $17 1/4 that has the $15 Strike Price Call Option trading at $3.50 would be included in this list. In this example, as long as the stock stays above $15 (the strike price), you will get called out for 9% return. Note, the standard calculation for determining the return is set forth below.

Step 1: 17.25 - 3.50 = 13.75 (out of pocket cost)
Step 2: 15 (assumed price at expiration) - 13.75 (out of pocket) = 1.25 (profit)
Step 3: 1.25 (profit) / 13.75 (out of pocket) = 9% return

The Out-Of-The-Money and In-The-Money stocks generally: have analysts recommending the stock as a strong buy or buy; have some earnings (or are projected to have some earnings); and are ranked in the top half of their industry.

Div-In/Div-Out Tables

The Div-In and Div-Out covered call tables highlight stocks which pay dividends and have a positive earnings per share growth rate over the last year.

The Div-In covered call table lists stocks with options trading in-the-money.

The Div-Out covered call table lists stocks with options out-of-the money.

We don't limit these covered call tables to any certain percent, however, generally they will be 5% or greater and will have 30-65 days until expiration.

By adding these table we were able to add stocks that generally are more mature than stocks that may appear on the Out-Of-The-Money and In-The-Money table, and hopefully a bit more stable. The theory simply being that dividend paying stocks generally have been around a little longer and obviously have some cash flow.

Twenty-Five Table

I send out a "1-Minute Survey" to all members about once every 6 months seeking input to make the covered calls service better. The result of one of these surveys was to establish a lower priced covered call table. So, we now have a table which is limited to stocks under $25. But, be careful! Sometimes there are good reasons why a stock is trading under 25 bucks!

The Twenty-Five Table highlights stocks that are trading under $25. Each stock has at least one industry analyst recommending the stock as a Strong Buy or Buy.

Raw Data Tables

In addition to the 5 covered call tables you have now read about, we have 3 "unscreened" covered call tables that are updated each night. These 3 tables contain stocks that have not been reviewed for any of our normal criteria. They simply contain the highest premium returns. The 3 tables are titled: 1) $25 ITM (under $25 and in-the-money); 2) Under $25 (under $25 and out-of-the-money); 3) Over $25 (over $25 and in or out-of the money).

That's it for covered call tables! 8 of them!

If you'd like to know a little bit about my "philosophy" and the schedule for the updating of the covered call tables, then click the little arrow...

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