Free Covered Call Trades for April 2010

 

Stocks ended the week to profit taking as a lack of positive catalysts and a stronger dollar kept many buyers at bay, while volume and volatility spiked with quadruple witching.

Heading into Friday’s trade the stock market had gained more than 5% since the start of the month.  The climb started to steady in the prior session as stocks in the broader market moved sideways to consolidate their recent string of gains.  The flat trade was regarded by several as a sign that stocks may have become tired after their run and additional advances in the near term may be harder to come by.  In turn, a broad-based selling effort hit stocks for their worst session of this month.

The strong dollar took down prices of commodities such as precious metals and oil.  We will need to see how the markets open on Monday.  Health companies were flat ahead of the weekend vote on Health Reform.

Here is a short list of covered call trades for April 2010.  All of these stocks are showing bullish technicals as of the close on Friday.  Real estate with General Growth properties (GGP) is a nice trade with potential for capital gains.  Insurance also looks good with AIG & UNH both making the list.

Covered Calls for April 2010
Symbol	Industry	Price	Strike Price	Option Bid	Prem % of Price	Assign Return
GGP	Real Estate	        16.74	        17.50	          1.00	6.0%	11.2%
AIG	Insurance	        34.44	        35.00	          2.03	5.9%	8.0%
HOG	Consumer Disc.	        28.38	        29.00	          0.98	3.5%	5.8%
IP	Paper Products	        25.88	        26.00	          0.95	3.7%	4.3%
UNH	Insurance	        34.27	        34.00	          1.58	4.6%	4.0%
BBY	Retail Disc.	        40.99	        41.00	          1.53	3.7%	3.9%
PNC	Banks	        59.80	        60.00	          1.50	2.5%	2.9%
GRMN	Electronics	        36.47	        36.00	          1.00	2.7%	1.5%