8 Covered Call Tables
- Twenty-Five Table- Highlighting stocks trading under $25 and that have at least one industry analyst recommending the stock as a Strong Buy or Buy.
- Div-In Table- Focusing on stocks which pay dividends and have a positive earnings per share growth rate over the last year. Options will be in-the-money.
- Div-Out Table- Focusing on stocks which pay dividends and have a positive earnings per share growth rate over the last year. Options will be out-of-the-money.
- OTM Table- Targeting stocks which have analysts recommending the stock as a strong buy or buy; have earnings (or are projected to have some earnings); and are ranked in or near the top half of their industry. Options will be out-of-the-money.
- ITM Table- Targeting stocks which have analysts recommending the stock as a strong buy or buy; have earnings (or are projected to have some earnings); and are ranked in or near the top half of their industry. Options will be in-the-money.
- Raw Data Under $25 ITM Table- Listing stocks that have not been reviewed for any of our normal criteria. They simply are trading under $25 and contain the highest in-the-money premium returns. Options will be in-the-money.
- Raw Data Under $25 OTM Table- Listing stocks that have not been reviewed for any of our normal criteria. They simply are trading under $25 and contain the highest out-of-the money premium returns. Options will be out-of-the-money.
- Raw Data Over $25 Table- Listing stocks that have not been reviewed for any of our normal criteria. They simply are trading over $25 and contain the highest premium returns.
Covered Call Table Risk Levels
In summary, the 3 “Raw Data Tables” and the 25 table generally carry the highest level of risk. Moving up the scale, I feel that the Out-of-The-Money and In-The-Money tables generally carry a little less risk than the above-mentioned tables. My reasons for this belief are that in most cases the company will have earnings, will have earnings growth over last year and we do not have a limitation with respect to stock share price. Further up the scale are the Div-In and Div-Out Tables. The stocks on this table, I believe, are generally more stable than the stocks mentioned above. Here, the stocks generally have earnings, earnings growth over the preceding year and they pay a dividend. I hope this brief explanation is helpful to you.
NOTE: The covered call selections listed herein are NOT recommendations. The list is a screening tool to help you begin your own research and is intended to save you time looking for covered call candidates. The selections are generally consistent with the criteria we have set forth, but the decision to invest in a particular stock should only be made after you have completed your own research and consulted a qualified professional. There are many factors to consider before writing a covered call on any given day, including but not limited to, overall market condition, news on a particular stock, technical indicators, earnings projections, and market sentiment.
Learn a little more about each of these tables:
Covered Call Summary of ServicesAs 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 Covered Call TableStocks 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 Covered Call 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…
Div-In & Div-Out Covered Call 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 trading 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 tables 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.
But, our members wanted more! …
Twenty-Five Covered Call Table
Many of our members asked us 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 Covered Call Tables
In addition to the 5 covered call tables you have now read about, we also have 3 more covered call tables. 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:
- Under $25 ITM (under $25 and in-the-money);
- Under $25 OTM (under $25 and out-of-the-money); and
- Over $25 (over $25 and in or out-of the money).
That’s it for covered call tables! 8 of them! You will most likely find that 1 or 2 of these tables fits your investing style just right!
If you’d like to know a little bit about my “philosophy” and the schedule for the updating of the covered call tables, then keep reading…
Here’s a little inside scoop on the whys and hows of what we do:
Our Writing Covered Calls PhilosophyOur philosophy may be a little different, and a little more conservative, than other web sites you may have seen or books that you may have read. Specifically, we do not limit ourselves solely to options with less than 4 weeks until expiration. Extending the time period for expiration by a couple of weeks beyond 4 weeks, can open the door at times to nearly 10 times as many stocks from which to choose. Hopefully, this will allow us to find a few good ones. Don’t overlook the previous paragraph. It’s pretty darn tough to write covered calls month in and month out on stocks with good premiums if you are limiting your choices to stocks with just 4 weeks until expiration. We have performed the research thousands of times. The choices simply get few and far between once you get down to only 4 weeks. We will provide you with several each month, but you will have a much better selection if you are willing to write covered calls with a little longer time frame. Remember, you can go elsewhere and pay for services that only provide these shorter-term plays… but also remember, we are reviewing them as well and will post ones that meet our criteria but we will also be choosing not to post a great many of them because they don’t meet our criteria.
Updating Of The Covered Call Tables
With the exception of the 3 unscreened covered call tables, our site is not just raw data dumps of stocks and options lists without regard to any criteria. Rather, our tables are generated only after a review of the numerous stock and option combinations that mathematically would qualify for one of our tables and have been reduced to include the stocks that are listed based on the criteria we have set forth herein.
Once the tables are posted, each Member then may use the information, as they see fit to evaluate possible covered call opportunities. It is recommended that each Member discuss their strategies with a licensed securities professional before writing a covered call or buying the underlying stock.
Thank you for taking the time to read through all of this material on my covered call tables. We have worked very hard to make it the best on the web!