Quick Take: 21st Century Covered Call Strategy
Time Frame: One to Four Weeks.
Stock: Bullish Market Edge Opinion – Long Position.
Desired Stock Price Direction: Sideways to Up.
Option Position: Short ATM +1 Call – Long ATM +2 Call (Credit Spread).
Desired Result: Stock stays flat and the credit spread expires worthless or the stock performs as anticipated and the stock and the long call appreciate in line with the stock price.
Maximum Risk: The stock goes down in price but the loss is offset somewhat by the amount of the credit spread.
The following is a list of this week’s new selections. Each week, if conditions warrant, one or more stocks are added to the portfolio with the total never exceeding eight. These stocks have a Market Edge, Bullish technical Opinion. The stocks and option spreads are added to the portfolio based on Monday’s opening prices. The stocks are removed from the portfolio after four weeks or if the Market Edge Opinion is downgraded from Bullish. To access the free booklet that describes the 21st Century Covered Call strategy, click on the Get The Booklet tab located on the home page.
This Weeks 21st Century Covered Call Positions
New Selections: There is one new selection this week: WMT
Market Edge Opinion: The underlying indicators are beginning to slip into neutral position. If momentum continues to weaken, further weakness may develop in the stock. The stock has outperformed the market over the last 50 trading days when compared to the S&P 500. The MACD-LT, an intermediate-term trend indicator, is bearish at this time. WMT’s chart formation is showing signs of reversing its recent trend. If the stock closes below $93.86 a change in trend will be confirmed. Upside momentum, as measured by the 9-day RSI, is positive but beginning to weaken. Over the last 50 trading sessions, there has been more volume on up days than on down days indicating that WMT is under accumulation. The stock is trading above a rising 50-day moving average. If WMT falls below this important support level it could trigger additional selling pressure. WMT is holding above a declining 200-day moving average.
| The Market Edge – Market Posture: | Bearish | VIX: | 21.31 | Neutral | |||||
| # Of | Stock | S – Call | L – Call | Credit | Best | Week % | Approx. | Approx. | |
| Stock | Weeks | Price | Strike | Strike | Spread | Bet | Return | Div Date | Dividend |
| CVX | 3 | $118.06 | 118.0 | 119.0 | $0.46 | 4.0 | 0.4% | None | $0.00 |
| XOM | 3 | $81.36 | 81.5 | 82.5 | $0.39 | 8.0 | 0.5% | None | $0.00 |
| WMT | 1 | $94.40 | 94.5 | 95.5 | $0.46 | 7.0 | 0.5% | None | $0.00 |
| Prices Are Monday’s Opening Prices | |||||||||
| Stocks have strongest Market Edge Power Ratings | |||||||||
| Weekly % Return: The Higher The Better | |||||||||
| Best Bet: The Bigger The Better | |||||||||
| Commissions & Dividends Not Included | |||||||||
For reporting purposes, stock positions are closed after four weeks of play or if the Market Edge Opinion is downgraded from Bullish.
The 21st Century Covered Calls Model Portfolio – Track Record
| S&P: | 11/06/17 | 2591.10 | Dollar Profit / Loss = Stock’s Close On Friday Minus Adjusted Stock Price | |||||||||
| S&P: | 10/12/18 | 2767.13 | ||||||||||
| Gain/Loss: | 176.03 | Adjusted Stock Price = Open Stock Price Minus Total Spread Profit/Loss | ||||||||||
| S&P % Gain/Loss: | 6.8% | |||||||||||
| Risk Capital: | $100,000 | Total Spread Profit – Loss = Spread Credits WK #1 – WK #4 Minus Spread | ||||||||||
| CC Total Profit/Loss: | $10,176 | Losses WK #1 – WK #4* | ||||||||||
| CC Total % Return: | 10.2% | |||||||||||
| # Of Weeks: | 44 | |||||||||||
| CC To S&P Ratio: | 1.5 | To 1 | ||||||||||
| Win % – Adjusted Prices: | 59.5% | *Spread Losses Occur When The Stock Price Friday Closes Above The | ||||||||||
| Annualized Return: | 12.0% | Short Call Strike Price | ||||||||||
| *Transaction Costs & Dividends Not Included | ||||||||||||
| Monday | Open | Week | Week | Week | Week | Total | Adjusted | Stock | Dollar | % | ||
| Open | Stock | #1 | #2 | #3 | #4 | Spread | Stock | Close | Price | Profit | Profit | |
| Stock | Date | Price | Credit | Credit | Credit | Credit | Profit/Loss | Price | Date | Friday | Loss | Loss |
| JPM | 11/06/17 | $101.04 | $0.57 | $0.49 | $0.37 | $0.48 | -$0.55 | $101.59 | 12/01/17 | $104.79 | $3.20 | 3.2% |
| MSFT | 11/06/17 | $84.38 | $0.78 | $0.72 | $0.68 | Close | $2.18 | $82.20 | 11/17/17 | $82.40 | $0.20 | 0.2% |
| MO | 11/13/17 | $65.03 | $0.39 | $0.28 | $0.91 | $0.52 | -$0.73 | $65.76 | 12/08/17 | $71.54 | $5.78 | 8.9% |
| DE | 11/13/17 | $131.50 | $0.90 | $1.49 | $0.81 | $0.78 | -$4.02 | $135.52 | 12/08/17 | $151.58 | $16.06 | 12.2% |
| GS | 11/20/17 | $237.30 | $1.46 | $0.81 | Close | Close | -$2.73 | $240.03 | 12/01/17 | $248.95 | $8.92 | 3.8% |
| DFS | 11/20/17 | $65.47 | $0.39 | $1.02 | $0.53 | $0.45 | -$0.40 | $65.87 | 12/15/17 | $74.59 | $8.72 | 13.3% |
| WYNN | 11/20/17 | $156.28 | $1.97 | $1.02 | $1.33 | $0.72 | -$4.42 | $160.70 | 12/15/17 | $166.03 | $5.33 | 3.4% |
| PEP | 11/27/17 | $115.90 | $0.34 | $0.45 | $0.48 | $0.53 | $0.02 | $115.88 | 12/22/17 | $118.60 | $2.72 | 2.3% |
| PXD | 11/27/17 | $154.10 | $1.80 | $1.85 | $0.92 | $0.78 | $0.69 | $153.41 | 12/22/17 | $171.12 | $17.71 | 11.5% |
| AAPL | 12/04/17 | $172.04 | $1.37 | $1.02 | $0.78 | $1.02 | $1.68 | $170.36 | 12/29/17 | $169.23 | -$1.13 | -0.7% |
| HSY | 12/04/17 | $111.01 | $1.01 | $0.71 | $1.18 | $0.23 | -$1.82 | $112.83 | 12/29/17 | $113.51 | $0.68 | 0.6% |
| WBA | 12/11/17 | $71.58 | $0.62 | $0.37 | $0.25 | $0.41 | $1.21 | $70.37 | 01/05/18 | $72.92 | $2.55 | 3.6% |
| UAL | 12/11/17 | $63.77 | $0.42 | $0.42 | $0.37 | $0.59 | $0.00 | $63.77 | 01/05/18 | $69.36 | $5.59 | 8.8% |
| EW | 12/18/17 | $114.62 | $0.32 | $0.70 | $0.91 | $0.91 | $1.13 | $113.49 | 01/19/18 | $123.91 | $10.42 | 9.1% |
| IBM | 12/18/17 | $153.91 | $1.27 | $0.95 | $0.41 | Close | $1.71 | $152.20 | 01/05/18 | $162.49 | $10.29 | 6.7% |
| LVS | 12/26/17 | $69.86 | $0.28 | $0.37 | Close | Close | $0.16 | $69.70 | 01/05/18 | $67.92 | -$1.78 | -2.5% |
| DIS | 12/26/17 | $108.55 | $0.23 | $0.36 | $0.70 | $0.76 | $0.43 | $108.12 | 01/19/18 | $110.59 | $2.47 | 2.3% |
| XOM | 01/02/18 | $83.75 | $0.22 | $0.35 | $0.32 | $0.44 | $1.16 | $82.59 | 01/26/18 | $89.00 | $6.41 | 7.7% |
| Monday | Open | Week | Week | Week | Week | Total | Adjusted | Stock | Dollar | % | ||
| Open | Stock | #1 | #2 | #3 | #4 | Spread | Stock | Close | Price | Profit | Profit | |
| Stock | Date | Price | Credit | Credit | Credit | Credit | Profit/Loss | Price | Date | Friday | Loss | Loss |
| ATHN | 01/02/18 | $133.84 | $0.48 | $0.67 | $0.74 | $1.17 | -$1.84 | $135.68 | 01/26/18 | $131.22 | -$0.40 | -0.3% |
| PG | 01/08/18 | $91.04 | $0.36 | $0.31 | $0.58 | $0.40 | $1.11 | $89.93 | 02/02/18 | $84.25 | $1.28 | 1.4% |
| PXD | 01/08/18 | $176.31 | $0.90 | $1.68 | $0.92 | $0.94 | $2.22 | $174.09 | 02/02/18 | $178.74 | -$2.90 | -1.6% |
| T | 01/08/18 | $38.00 | $0.17 | $0.44 | $0.38 | $0.46 | -$0.47 | $38.47 | 02/02/18 | $38.07 | -$5.51 | -14.5% |
| AAL | 01/08/18 | $52.38 | $0.37 | $0.40 | $0.64 | $0.37 | $1.56 | $50.82 | 02/02/18 | $52.10 | -$6.30 | -12.0% |
| WYNN | 01/15/18 | $171.23 | $2.04 | $1.02 | $2.35 | $1.70 | $2.11 | $169.12 | 02/09/18 | $166.22 | -$9.40 | -5.5% |
| PM | 01/22/18 | $109.06 | $0.80 | $0.40 | $0.32 | $0.91 | -$0.76 | $109.82 | 02/16/18 | $104.31 | -$4.81 | -4.4% |
| ALXN | 01/29/18 | $128.09 | $0.97 | $0.96 | $0.39 | $1.09 | $1.32 | $126.77 | 02/16/18 | $120.47 | -$7.36 | -5.7% |
| CELG | 01/29/18 | $105.17 | $0.70 | $0.41 | $0.40 | Close | $0.51 | $104.66 | 02/16/18 | $95.26 | -$1.51 | -1.4% |
| UTX | 02/05/18 | $133.54 | $0.41 | $0.43 | $0.75 | $0.81 | -$1.21 | $134.75 | 03/02/18 | $129.94 | $4.19 | 3.1% |
| PEP | 02/05/18 | $118.93 | $0.39 | Close | Close | Close | $0.39 | $118.54 | 02/09/18 | $111.18 | $6.34 | 5.3% |
| GLD | 02/05/18 | $126.72 | $0.44 | Close | Close | Close | $0.44 | $126.28 | 02/09/18 | $124.77 | $16.66 | 13.1% |
| DECK | 02/12/18 | $94.37 | $0.41 | $0.76 | $0.42 | $0.47 | $1.06 | $93.31 | 03/02/18 | $97.50 | $16.11 | 17.1% |
| EA | 02/12/18 | $123.71 | $0.90 | $0.38 | $0.37 | $0.92 | $1.56 | $122.15 | 03/02/18 | $128.49 | -$8.03 | -6.5% |
| WDC | 02/12/18 | $82.35 | $0.69 | $0.68 | $0.70 | $0.39 | -$0.54 | $82.89 | 03/02/18 | $99.55 | $2.38 | 2.9% |
| ADSK | 02/26/18 | $115.77 | $0.76 | $1.00 | $1.48 | $0.90 | $3.86 | $111.91 | 03/16/18 | $128.02 | -$7.46 | -6.4% |
| JPM | 02/26/18 | $117.90 | $0.79 | $0.86 | $0.73 | $0.80 | $2.86 | $115.04 | 03/16/18 | $107.01 | -$4.66 | -4.0% |
| Monday | Open | Week | Week | Week | Week | Total | Adjusted | Stock | Dollar | % | ||
| Open | Stock | #1 | #2 | #3 | #4 | Spread | Stock | Close | Price | Profit | Profit | |
| Stock | Date | Price | Credit | Credit | Credit | Credit | Profit/Loss | Price | Date | Friday | Loss | Loss |
| EW | 03/05/18 | $134.56 | $0.90 | $1.12 | $0.82 | $0.58 | -$2.58 | $137.14 | 03/30/18 | $139.52 | -$13.79 | -10.2% |
| SWKS | 03/05/18 | $109.14 | $0.67 | $1.20 | $0.80 | $0.75 | $1.42 | $107.72 | 03/30/18 | $100.26 | $4.17 | 3.8% |
| AMT | 03/19/18 | $145.93 | $0.65 | $0.60 | $0.74 | $1.20 | $2.37 | $143.56 | 04/13/18 | $138.90 | -$6.64 | -4.6% |
| VRTX | 03/19/18 | $173.53 | $1.40 | $2.19 | $2.38 | Close | $5.49 | $168.04 | 04/06/18 | $154.25 | -$0.47 | -0.3% |
| ATHN | 03/26/18 | $140.89 | $0.51 | $1.31 | $0.31 | $0.93 | -$1.01 | $141.90 | 04/20/18 | $146.07 | $1.62 | 1.1% |
| EW | 04/02/18 | $139.12 | $0.75 | $0.83 | $0.82 | $0.79 | $3.19 | $135.93 | 04/27/18 | $129.29 | $5.61 | 4.0% |
| TLT | 04/09/18 | $120.59 | $0.44 | $0.50 | $0.62 | $0.46 | $1.13 | $119.46 | 05/11/18 | $118.99 | -$6.81 | -5.6% |
| MSFT | 04/23/18 | $95.52 | $0.92 | $0.60 | $0.55 | $0.53 | $0.78 | $94.74 | 05/18/18 | $96.36 | -$0.33 | -0.3% |
| UPS | 04/23/18 | $108.50 | $0.88 | $0.77 | $0.33 | $0.75 | -$1.27 | $109.77 | 05/18/18 | $115.38 | $1.38 | 1.3% |
| COF | 04/23/18 | $98.16 | $0.93 | $0.61 | $0.75 | Close | $2.29 | $95.87 | 05/04/18 | $89.06 | -$4.00 | -4.1% |
| MCD | 04/30/18 | $165.05 | $1.20 | $0.75 | $1.05 | $2.02 | $1.51 | $163.54 | 05/25/18 | $163.21 | $21.98 | 13.3% |
| ALXN | 05/07/18 | $116.87 | $0.93 | $0.90 | $0.75 | Close | $0.51 | $116.36 | 05/25/18 | $117.74 | $0.20 | 0.2% |
| CVX | 05/07/18 | $127.24 | $0.82 | $0.68 | $0.62 | $0.82 | -$0.61 | $127.85 | 06/01/18 | $123.85 | -$1.38 | -1.1% |
| LULU | 05/14/18 | $98.26 | $0.88 | $0.62 | $1.02 | $0.88 | -$1.78 | $100.04 | 06/08/18 | $122.02 | $2.91 | 3.0% |
| MAR | 05/21/18 | $139.17 | $0.85 | $0.90 | $0.75 | $0.42 | $0.54 | $138.63 | 06/16/18 | $138.83 | -$1.31 | -0.9% |
| XOM | 05/21/18 | $81.63 | $0.41 | $0.39 | $0.32 | $0.57 | -$0.41 | $82.04 | 06/16/18 | $80.66 | -$0.62 | -0.8% |
| PYPL | 05/21/18 | $81.05 | $0.63 | $0.53 | $0.40 | $0.40 | -$1.35 | $82.40 | 06/16/18 | $85.31 | $6.48 | 8.0% |
| Monday | Open | Week | Week | Week | Week | Total | Adjusted | Stock | Dollar | % | ||
| Open | Stock | #1 | #2 | #3 | #4 | Spread | Stock | Close | Price | Profit | Profit | |
| Stock | Date | Price | Credit | Credit | Credit | Credit | Profit/Loss | Price | Date | Friday | Loss | Loss |
| SWKS | 05/29/18 | $100.54 | $0.91 | $0.88 | $0.44 | $0.42 | $0.68 | $99.86 | 06/22/18 | $98.55 | -$0.21 | -0.2% |
| UTX | 05/29/18 | $126.33 | $0.81 | $0.87 | $0.41 | $0.36 | $0.84 | $125.49 | 06/22/18 | $124.87 | $1.30 | 1.0% |
| PEP | 06/04/18 | $100.38 | $0.79 | $0.51 | $0.42 | $0.33 | -$1.95 | $102.33 | 06/29/18 | $108.81 | $6.48 | 6.5% |
| V | 06/11/18 | $134.57 | $0.40 | $0.37 | $0.43 | $0.40 | $0.27 | $134.30 | 07/06/18 | $134.09 | -$0.21 | -0.2% |
| TNA | 06/18/18 | $88.44 | $0.68 | $0.54 | $0.46 | $0.49 | $1.02 | $87.42 | 07/13/18 | $88.72 | $1.30 | 1.5% |
| VMW | 06/18/18 | $149.25 | $0.61 | $0.36 | $1.48 | $0.84 | $1.32 | $147.93 | 07/13/18 | $155.05 | $7.12 | 4.8% |
| HSY | 06/25/18 | $94.07 | $0.44 | $0.37 | $0.44 | $0.38 | $0.63 | $93.44 | 07/20/18 | $91.92 | -$1.52 | -1.6% |
| RCL | 06/25/18 | $106.49 | $0.44 | $0.49 | $0.43 | $0.52 | -$0.12 | $106.61 | 07/20/18 | $110.56 | $3.95 | 3.7% |
| LOW | 07/02/18 | $94.58 | $0.48 | $0.38 | $0.45 | $0.32 | -$1.37 | $95.95 | 07/27/18 | $98.00 | $2.05 | 2.2% |
| SWKS | 07/09/18 | $99.48 | $0.64 | $0.53 | $0.45 | $0.41 | $1.32 | $98.16 | 08/03/18 | $95.61 | -$2.55 | -2.6% |
| UTX | 07/09/18 | $126.09 | $0.45 | $0.48 | $0.44 | $0.50 | -$0.39 | $126.48 | 08/03/18 | $133.89 | $7.41 | 5.9% |
| DE | 07/16/18 | $136.15 | $0.47 | $0.47 | $0.48 | Close | -$1.58 | $137.73 | 08/03/18 | $143.36 | $5.63 | 4.1% |
| CELG | 07/23/18 | $85.04 | $0.46 | $0.48 | $0.38 | $0.35 | -$0.33 | $85.37 | 08/17/18 | $90.37 | $5.00 | 5.9% |
| JNJ | 07/23/18 | $125.79 | $0.41 | $0.42 | $0.31 | $0.36 | $0.50 | $125.29 | 08/17/18 | $134.47 | $9.18 | 7.3% |
| WMT | 07/30/18 | $88.62 | $0.42 | $0.31 | $0.44 | $0.55 | -$0.96 | $89.58 | 08/24/18 | $94.95 | $5.37 | 6.1% |
| PEP | 07/30/18 | $114.39 | $0.30 | $0.33 | $0.38 | $0.58 | -$0.41 | $114.80 | 08/24/18 | $112.15 | -$2.65 | -2.3% |
| Monday | Open | Week | Week | Week | Week | Total | Adjusted | Stock | Dollar | % | ||
| Open | Stock | #1 | #2 | #3 | #4 | Spread | Stock | Close | Price | Profit | Profit | |
| Stock | Date | Price | Credit | Credit | Credit | Credit | Profit/Loss | Price | Date | Friday | Loss | Loss |
| JPM | 08/06/18 | $116.66 | $0.37 | $0.33 | $0.46 | $0.48 | $1.64 | $115.02 | 08/31/18 | $114.58 | -$0.44 | -0.4% |
| PM | 08/06/18 | $86.53 | $0.51 | $0.40 | $0.49 | $0.35 | $0.75 | $85.78 | 08/31/18 | $77.89 | -$7.89 | -9.1% |
| RCL | 08/13/18 | $114.62 | $0.42 | $0.46 | $0.43 | $0.36 | -$0.47 | $115.09 | 09/07/18 | $124.36 | $9.27 | 8.1% |
| UTX | 08/13/18 | $133.32 | $0.50 | $0.45 | $0.48 | $0.38 | $0.37 | $132.95 | 09/07/18 | $132.01 | -$0.94 | -0.7% |
| CELG | 08/20/18 | $90.58 | $0.35 | $0.40 | $0.42 | $0.39 | $0.56 | $90.02 | 09/14/18 | $87.17 | -$2.85 | -3.1% |
| UPS | 08/27/18 | $123.77 | $0.39 | $0.41 | $0.38 | $0.43 | $1.61 | $122.16 | 09/21/18 | $118.49 | -$3.67 | -3.0% |
| DE | 09/03/18 | $142.57 | $0.41 | $1.03 | $0.87 | $1.11 | -$0.41 | $142.98 | 09/28/18 | $150.33 | $7.35 | 5.2% |
| URI | 09/03/18 | $156.75 | $0.81 | $0.95 | $0.91 | $1.00 | -$0.37 | $157.12 | 09/28/18 | $163.60 | $6.48 | 4.1% |
| JPM | 09/10/18 | $114.28 | $0.52 | $0.33 | $0.55 | $0.40 | $0.18 | $114.10 | 10/04/18 | $114.62 | $0.52 | 0.5% |
| GLD | 09/17/18 | $113.77 | $0.44 | $0.38 | $0.36 | $0.45 | -$0.37 | $114.14 | 10/12/18 | $115.23 | $1.09 | 1.0% |
| CVX | 10/01/18 | $124.32 | $0.52 | $0.50 | $0.46 | $0.48 | $123.84 | $117.77 | -$6.07 | -4.9% | ||
| XOM | 10/01/18 | $85.63 | $0.41 | $0.37 | $0.39 | $1.17 | $84.46 | $81.38 | -$3.08 | -3.6% | ||
| WMT | 10/15/18 | $94.40 | $0.46 | $0.46 | $93.94 | $94.40 | $0.46 | 0.5% | ||||