NEXT WEEK'S COVERED CALL CANDIDATES: NE, CLF, AMD, WLL, OASHere are my candidates for covered calls next week. Right now, they're based solely on ROC metrics, the key being to get at least a 10% ROC if the shares are called away at the short call strike. Additionally, the focus is on sub 10.00 debit plays; underlyings of higher dollar value are generally more amenable to other strategies.
After looking at the charts, as well as doing some due diligence on the companies, I'll cull the herd ... .
$NE (O&G): Buy shares at 6.21; sell the Sept 30th 6.5 call; 5.85 db; $65 max profit (11% ROC).
$CLF (Mining): Buy shares at 6.09; sell the Sept 30th 6.5 call; 5.75 db; $75 max profit (13% ROC).
$AMD (Semiconductor): Buy shares at 7.62; sell the Sept 30th 8 call; 7.21 db; $79 max profit (11% ROC).
$WLL (O&G): Buy shares at 8.04; sell the Sept 30th 8.5 call; 7.36 db; $114 max profit (15.5% ROC).
$OAS (O&G): Buy shares at 10.27; sell the Sept 30th 11 call; 9.84 db; $116 max profit (11.8% ROC).
