The 21st Century Covered Call Strategy – 01-22-19

Quick Take: 21^st 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.

The following are this week’s 21st Century Covered Call Selections. Each week, if conditions warrant one or more new stock positions are added to the Open Positions list. These stocks have a Bullish technical Opinion from Market Edge. The stocks and option spreads are added to the portfolio based on Monday’s opening prices. The stocks are removed from the portfolio after eight weeks or if the Market Edge Opinion is downgraded from Bullish. To  access The Low Cost Put Hedge informative booklet click on the Get The Booklet tab located on the home page or at the bottom of this page.

 This Week’s 21st Century Covered Call Selections

There are no new selections this week:

Current  Open Positions 

Results for this week’s trades will be posted over the weekend on the Scoreboard.