Over the years, Value Line Options’ covered calls have beaten the major stock indexes by wide margins. In screening for attractively priced covered calls, we have specified that we are looking for calls that are overpriced (according to the Value Line Options model), and as covered calls, offer premium income in excess of 20% per annum. We have also specified that the stock could fall as much as 2% at expiration and the investor would still break even. Narrowing our search down to stocks with superior six to twelve month appreciation potential, we came up with a short list of covered calls.
LEAPS are longer-term puts or calls with expirations of between nine months and two and a half years. Put LEAPS can be attractive as portfolio hedges because they lose time premium at a much slower rate than do shorter-term puts. Selecting the most underpriced LEAPS per underlying stock, our screening came up with 24 LEAPS on 14 stocks.
You create a cash-covered put when you write a put and maintain enough cash in your brokerage account to cover the entire risk of holding the position. Readers of our Weekly Strategist Reports will know that cash covered puts and covered calls are what are called equivalent positions. That is, for the same stock, strike and expiration, these positions require essentially the same amount of capital and offer very similar risks and rewards. Here we have screened for attractively priced (i.e. overpriced) puts on stocks with above average appreciation potential that also meet the following criteria; minimum per annum yield of 20%, minimum protection (breakeven) of 6%, and a bid/ask spread no wider than 20%. Limiting our search to one put option per stock (the best scoring), our screener came up with 29 candidates, among them:
LEAPS are longer-term puts or calls with expirations of between nine months and two and a half years. Put LEAPS can be attractive as portfolio hedges because they lose time premium at a much slower rate than do shorter-term puts. In our screening we looked for puts that are deemed to be underpriced, according to our model, that are based on stocks expected to do worse than the market, and that offer leverage that is more than 2 to 1 on a downward move in the stock (i.e., if the stock falls 10%, the LEAP gains more than 20%.)
You create a cash-covered put when you write a put and maintain enough cash in your brokerage account to cover the entire risk of holding the position. Readers of our Weekly Strategist Reports will know that cash covered puts and covered calls are what are called equivalent positions. That is, for the same stock, strike and expiration, these positions require essentially the same amount of capital and offer very similar risks and rewards. Here we have screened for attractively priced (i.e. overpriced) puts on stocks with above average appreciation potential that also meet the following criteria; minimum per annum yield of 15%, minimum protection (breakeven) of 7%, and a bid/ask spread no wider than 20%. Limiting our search to one put option per stock (the best scoring), our screener came up with 29 candidates, among them:
You create a covered call by buying or owning shares of stock and writing calls on them. By writing the call, you collect the premium but take on the obligation to deliver your stock should the call be exercised. When we say a call is “attractively priced for covered call writing,” we mean that the premium more than compensates you for the possible risk of having to give up your stock. Over the years, Value Line Options’ covered calls have beaten the major stock indexes by wide margins. In screening for attractively priced covered calls, we have specified that we are looking for calls that are overpriced (according to the Value Line Options model), and as covered calls, offer premium income in excess of 20% per annum. We have also specified that the stock could fall as much as 2% at expiration and the investor would still break even. Narrowing our search down to stocks with superior six to twelve month appreciation potential, we came up with a list that included covered calls on some 42 stocks, including those listed below.
Adding put purchases to your portfolio is an excellent way to diversify your investments, and hedge against a decline in the stock market. (Bear in mind, the most you can lose is your premium.) In this screen, we searched out puts that, according to our Value Line Options Model, are attractively priced for buying (a bearish strategy). In our screening, we have specified that, in addition to attractively priced premiums, these puts are reasonably liquid, and have current leverage of at least 4 to 1, meaning that for every 1% fall in the underlying stock, the put is likely to make at least a 4% profit.
In this screen we look for calls that are attractively priced for call buying. By attractively priced, we mean that, according to our Value Line Options Model, the premiums are a bargain in view of the profits you can make if the stock rises.
Attractively Priced Calls for Covered Call Writing - August 10, 2010
Over the years, Value Line Options’ covered calls have beaten the major stock indexes by wide margins. In screening for attractively priced covered calls, we have specified that we are looking for calls that are overpriced (according to the Value Line Options model), and as covered calls, offer premium income in excess of 20% per annum. We have also specified that the stock could fall as much as 2% at expiration and the investor would still break even. Narrowing our search down to stocks with superior six to twelve month appreciation potential, we came up with a short list of covered calls.
Underpriced Put LEAPS for Portfolio Protection - July 22, 2010
LEAPS are longer-term puts or calls with expirations of between nine months and two and a half years. Put LEAPS can be attractive as portfolio hedges because they lose time premium at a much slower rate than do shorter-term puts. Selecting the most underpriced LEAPS per underlying stock, our screening came up with 24 LEAPS on 14 stocks.
Attractively Priced Puts for Cash-Covered Put Writing - July 22, 2010
You create a cash-covered put when you write a put and maintain enough cash in your brokerage account to cover the entire risk of holding the position. Readers of our Weekly Strategist Reports will know that cash covered puts and covered calls are what are called equivalent positions. That is, for the same stock, strike and expiration, these positions require essentially the same amount of capital and offer very similar risks and rewards. Here we have screened for attractively priced (i.e. overpriced) puts on stocks with above average appreciation potential that also meet the following criteria; minimum per annum yield of 20%, minimum protection (breakeven) of 6%, and a bid/ask spread no wider than 20%. Limiting our search to one put option per stock (the best scoring), our screener came up with 29 candidates, among them:
Underpriced Put LEAPS for Portfolio Protection
LEAPS are longer-term puts or calls with expirations of between nine months and two and a half years. Put LEAPS can be attractive as portfolio hedges because they lose time premium at a much slower rate than do shorter-term puts. In our screening we looked for puts that are deemed to be underpriced, according to our model, that are based on stocks expected to do worse than the market, and that offer leverage that is more than 2 to 1 on a downward move in the stock (i.e., if the stock falls 10%, the LEAP gains more than 20%.)
Attractively Priced Puts for Cash-Covered Put Writing
You create a cash-covered put when you write a put and maintain enough cash in your brokerage account to cover the entire risk of holding the position. Readers of our Weekly Strategist Reports will know that cash covered puts and covered calls are what are called equivalent positions. That is, for the same stock, strike and expiration, these positions require essentially the same amount of capital and offer very similar risks and rewards. Here we have screened for attractively priced (i.e. overpriced) puts on stocks with above average appreciation potential that also meet the following criteria; minimum per annum yield of 15%, minimum protection (breakeven) of 7%, and a bid/ask spread no wider than 20%. Limiting our search to one put option per stock (the best scoring), our screener came up with 29 candidates, among them:
Attractively Priced Calls for Covered Call Writing
You create a covered call by buying or owning shares of stock and writing calls on them. By writing the call, you collect the premium but take on the obligation to deliver your stock should the call be exercised. When we say a call is “attractively priced for covered call writing,” we mean that the premium more than compensates you for the possible risk of having to give up your stock. Over the years, Value Line Options’ covered calls have beaten the major stock indexes by wide margins. In screening for attractively priced covered calls, we have specified that we are looking for calls that are overpriced (according to the Value Line Options model), and as covered calls, offer premium income in excess of 20% per annum. We have also specified that the stock could fall as much as 2% at expiration and the investor would still break even. Narrowing our search down to stocks with superior six to twelve month appreciation potential, we came up with a list that included covered calls on some 42 stocks, including those listed below.
Option Screen: Attractively Priced Puts for Put Buying
Adding put purchases to your portfolio is an excellent way to diversify your investments, and hedge against a decline in the stock market. (Bear in mind, the most you can lose is your premium.) In this screen, we searched out puts that, according to our Value Line Options Model, are attractively priced for buying (a bearish strategy). In our screening, we have specified that, in addition to attractively priced premiums, these puts are reasonably liquid, and have current leverage of at least 4 to 1, meaning that for every 1% fall in the underlying stock, the put is likely to make at least a 4% profit.
Option Screens: Attractively Priced Calls for Call Buying
In this screen we look for calls that are attractively priced for call buying. By attractively priced, we mean that, according to our Value Line Options Model, the premiums are a bargain in view of the profits you can make if the stock rises.