Covered Calls Strategy

I write covered calls frequently. Here is a interesting strategy from another blog.

Best regards
Dave

Analyst Expectations

One year growth is 19.5.

This is a screen shot of my most used screen. This is on SGP which I believe will rise to 19 in the next 3 to 6 weeks. I will post later why I believe that but that what I believe. I bought 500 share at $15.99. I am looking to buy some more.

Stock Screen Hints

From another blog.  I am going to try this. 

May I share an insight that I learned from an investor who does covered calls. His criteria for stocks for CC in ANY market is:




Stocks that are:

Above the 200dma (but not below 50dma, better > 100; best > 200dma);

Mkt Cap > 2B;

Daily Vol > 1M;

Consistent earnings and EPS growth;

PE < 18; PEG < 1.37

Free Cash Flow > 10 (better in the thousands-- esp., if it pays dividends)

Dividend > 1%;

ROE > 5 (better above 10);

High Relative Strength (esp., in a Bear Market);

Low Debt to Equity ratio (esp., in a Bear Mkt);

Low Beta/ Std Dev;

Upward moves happen on volume.

Put those values in Yahoo's stock screener at:
http://screener.finance.yahoo.com/newscreener.html



Check for stocks that have crossed the 200dma here at MSN's screener:

http://moneycentral.msn.com/investor/finder/deluxestockscreen.aspx?query=Crossed+Above+200-Day+MA+Today



Hope that helps.

From another site: 

"if you have ridden it down this far, this would be the absolute *worst* possible time to get out. If we have not already seen the bottom, I think we are very close, and for a Long, minimizing the risk of missing a substantial upside move simply to avoid a little more pain on the downside should be paramount".

I personally have sold some poor performers and kept better stocks like MSFT, GE, PG, HAL, CSCO.  I will stick with these awhile. 

Bad

The results of the entire bull market of 2003-2007 are now all but obliterated

Probabilities

Interesting article on the mathematics of investing.

http://www.slate.com/id/2201428/