Quick Take: 21st Century Covered Call Strategy
Time Frame: One to Eight Weeks.
Stock: Bullish Market Edge Opinion – Long Stock position.
Desired Stock Price Direction: Sideways to Up.
Option Position: Short ATM 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 Week’s 21st Century Covered Call Selections
There are no new selections this week:
Current Open Positions
| The Market Edge – Market Posture: | Bearish | |||||||||
| Stock Price Is Friday Afternoon | ||||||||||
| Initial | Current | Short Call | Long Call | |||||||
| Stock | # Of | Stock | 08/16/19 | 08/16/19 | Credit | Best | Week % | Approx. | Approx. | |
| Stock | Price | Weeks | Price | Strike | Strike | Spread | Bet | Return | Div Date | Dividend |
| BIDU | $101.63 | 2 | $95.88 | 96.0 | 98.0 | $0.68 | 5.2 | 0.7% | N/A | $0.50 |
| PM | $82.88 | 1 | $82.88 | 82.5 | 84.5 | $0.72 | 4.9 | 0.9% | ||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| 0.0 | 0.0% | |||||||||
| Stocks Have Strongest Market Edge Opinions | ||||||||||
| Weekly % Return: The Higher The Better | ||||||||||
| Best Bet: The Bigger The Better | ||||||||||
Results for this week’s trades will be posted over the weekend on the Scoreboard.