Quick Take: 21st Century Covered Call Strategy
Time Frame: One to Four Weeks.
Stock: Bullish Market Edge Opinion – Long Stock position.
Desired Stock Price Direction: Sideways to Up.
Option Position: Short ATM +1 Call – Long ATM +2 Call (Credit Spread).
Maximum Risk: The stock goes down and you lose the amount of the stock’s decline. However, the loss is offset somewhat by the amount of the credit spread.
Summary: If the stock stays flat or moves down, the credit spread will expire worthless and you will keep the credit. If the stock moves up, the stock and the long call will appreciate in line with the stock price.
This Weeks 21st Century Covered Call Positions
New Selections: There are no new selections this week:
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: | 01/05/19 | 2531.94 | ||||||||||
| S&P Points Gain/Loss: | -59.16 | Adjusted Stock Price = Open Stock Price Minus Total Spread Profit/Loss | ||||||||||
| S&P % Gain/Loss: | -2.3% | |||||||||||
| Risk Capital: | $100,000 | Total Spread Profit – Loss = Spread Credits WK #1 – WK #4 Minus Spread | ||||||||||
| Covered Call Profit/Loss: | $10,176 | Losses WK #1 – WK #4* | ||||||||||
| Covered Call % Return: | 10.2% | |||||||||||
| # Of Weeks-Open Positions: | 44 | |||||||||||
| 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 | $0.41 | $0.75 | $123.57 | 10/26/18 | $111.53 | -$12.04 | -9.7% |
| XOM | 10/01/18 | $85.63 | $0.41 | $0.37 | $0.39 | $0.42 | $1.12 | $84.51 | 10/26/18 | $77.53 | -$6.98 | -8.2% |
| WMT | 10/15/18 | $94.40 | $0.46 | $0.44 | $0.43 | $0.45 | -$1.56 | $95.96 | 11/09/18 | $105.56 | $9.60 | 10.2% |