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%
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