As a Member of our Covered Call service you will have access to
8 covered call tables which provide you with data for writing covered calls.
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 Table
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.
Here, 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
Similar to the OTM Table, the In-The-Money stocks generally 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 the
top half of their industry.
We originally just had an in-the-money table and an out-of-the money table. However, our
members wanted more, so next came the Div-In and Div-Out Tables...
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