Happy February faithful fans, lets celebrate a tremendous January return! Sallie Mae (SLM), Sturm Ruger (RGR), and USG have graduated from my stocks to watch and play with for the time being, as they have gone up precipitously in the past 30 days. It's time to look at some newbies and with 10 days left in the trading month, here are 3 stocks with covered calls to make Valentines Day quite rosy. Message me with any ideas/questions you may have and Happy Trading.
Ford Motor (F) had a nice quarter and they are selling lots of cars. The stock is in a nice range here and close to a strike. Let's buy it here at $12.80 and write the Feb 13 calls and grab .15, and add that in with the .20 cents in capital gain you make 2.7% for the 10 days. Not the richest premiums in the marketplace, but steady.
B&G Foods (BGS) makes about every seasoning, marinade, syrups, mixes, dressings, and sauces known to man. The stock has done nicely and this sector will have a great 2012 as worldwide demand grows exponentially. The stock is $22.37 and I love this write. The Feb 23 calls give you roughly 2.5% (.55) and with the capital gain you enjoy a 3% 10 day return. I love this industry, everyone has to eat.
Cliffs Natural Res (CLF) is a mining and natural resource company producing iron ore pellets and metallurgical coal products. They have been around since 1847. The stock is at $75 right now, this is a straight option premium play. By the stock here at $75 and write the 75's for $2.40 which represents a 3.2% premium return. Nicely done.
Let's see how these workout for you. GO GIANTS!!!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.