I wrote about 3 stocks December 26, 2011, that I thought were at the perfect buying level with attractive covered calls. If you listened and got on board, then your January is shaping up to be a phenomenal one. With 6 days left in the option month, there are also a few new ones I recommend for a nice profit.
Sturm Ruger (RGR): The stock is now at $35.88, almost a point above strike. You are on pace for a 4.7% return for the month.
SLM Corp. (SLM): The stock is now $13.90, just 10 cents away from a 5% return on your money for the month.
USG Corp (USG): The stock is $13.35. Congrats! You just made 11.8% on your money for the month.
With 6 trading days left in the month I have identified some quality companies with covered calls. If you have any questions, as always, feel free.
Molycorp (MCP): The stock is $28.40. Buy it here and write the Jan $29 calls, and grab 65 cents for the $29 strike. Between the premium and capital gain its an 4.4% for 6 days.
ABB Corp (ABB): The stock finally broke $20, but I don't think it will hold here, so just a straight option premium play, write the Jan 20s for $0.40 and take the 2% for 6 days.
Potash Corp (POT): The stock is down $1.77 to around $42. I like it for the 6 days. Give yourself some capital upside, write the $43.33 calls for January at $0.50 a 1.2% premium -- but if it rallies back to $43.33, you enjoy 4.35% for 6 days.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
