Open to Sell a Covered Call

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Open to Sell a Covered Call

We Open to Sell a covered call when we believe the market, sector, or stock is temporarily overvalued in the current ongoing value cycle. To Open to Sell a covered call contract, you must own the underlying shares of stock. One contract is written against 100 shares of the stock.

Usually the better time to open/write the contract is between the Mature Watch to Sell (MWTS) and the SELL signals given on the actual stock. Click here to see the stocks in The Invest Window. Our action language for to write a covered call is...Open to Sell (OPEN). If you have large stock positions, it is often a good idea to take two actions scaling in as the value cycle is maturing.

As before, Andrea and Jerry's favorite picks will be used for our covered call demonstration. This is our second opportunity to do covered calls (the final 50% in the demonstration). Updated on 6/24/03.

Open to Sell - Covered Call Position - on Common Stocks
Stock Call Symbol Month/Year Strike OPEN Call Price Date
AA AAHT Aug 03 17.5 25.00 7.50 6/23
AIG AIGHI Aug 03 45 57.20 12.50 6/23
C CIF Sept 03 30 43.10 13.00 6/23
HD HDHD Aug 03 20 31.90 11.90 6/23
INTC NQHC Aug 03 15 20.40 5.50 6/23
LEH LEHHK Aug 03 55 69.00 14.20 6/23
MSFT MQFHX Aug 03 22.5 25.80 3.30 6/23
MWD MWDHG Aug 03 35 42.80 7.80 6/23
PFE PFETY Sept 03 25 35.40 10.40 6/23

Open to Sell - Covered Call Position - on Dividend Paying Common Stocks
Stock Call Symbol Month/Year Strike OPEN Call Price Date
DD DDHU Aug 03 37.5 41.90 4.50 6/23
DUK DUKHC Aug 03 15 20.20 5.20 6/23
GE GEIX Sept 03 22.5 29.90 7.40 6/23
RD RDHH Aug 03 40 47.60 7.70 6/23
RPM RPMHB Aug 03 10 13.00 3.00 6/23
SC SCHF Aug 03 35 40.90 6.00 6/23

Open to Sell - Covered Call Position - on Other Common Stocks
Stock Call Symbol Month/Year Strike OPEN Call Price Date
BK BKHX Aug 03 22.5 28.20 5.70 6/23
NOK NOKHV Aug 03 12.5 16.90 4.40 6/23

This is the first portion of our covered call demonstration where we did 50% of our stock positions. These covered calls were written in late April and early May.

Open to Sell - Covered Call Position - on Common Stocks
Stock Call Symbol Month/Year Strike WTO OPEN Call Price Date
AA AAGT Jul 03 17.5 22 22.70 5.20 4/29
AIG AIGHI Aug 03 45 55 56.60 12.50 4/29
C CIF Sept 03 30 38 39.10 9.40 4/29
HD HDHD Aug 03 20 27 28.20 8.30 4/29
INTC NQGC Jul 03 15 18 18.90 4.30 4/29
LEH LEHGJ Jul 03 50 63 63.30 14.00 4/29
MSFT MQFGX Jul 03 22.5 25 26.30 4.00 5/6
MWD MWDGG Jul 03 35 45 44.40 10.40 4/29
PFE PFEIY Sept 03 25 31 33.70 8.50 5/15

Open to Sell - Covered Call Position - on Dividend Paying Common Stocks
Stock Call Symbol Month/Year Strike WTO OPEN Call Price Date
DD DDGG Jul 03 35 40 42.40 7.60 4/29
DUK DUKGS Jul 03 12.5 15 16.80 4.30 5/6
GE GEIX Sept 03 22.5 28 29.40 7.30 4/29
RD RDGU Jul 03 37.5 42 44.80 7.50 5/15
RPM RPMHB Aug 03 10 10 12.20 2.25 5/6
SC SCHF Aug 03 35 37 39.40
4.90 5/15

Open to Sell - Covered Call Position - on Other Common Stocks
Stock Call Symbol Month/Year Strike WTO OPEN Call Price Date
BK BKGD Jul 03 20 24 26.40 6.50 4/29
NOK NOKGV Jul 03 12.5 16 16.80 4.30 4/29

Click here to go to Close to Buy a Covered Call. Or click here to see The Harvest Window or the The Tend Window.