MTRIG's  Instablog

Send Message
MTR Investors Group was founded in mid 2008. Since that time our primary goal is to provide powerful and profitable investment research tools to stock and option investors/traders. We do not provide buy or sell recommendations on any stock, etf, or other investments. We simply provide powerful... More
My company:
Mtr investors group
My blog:
MTR Investors Group
My book:
All About Market Timin
  • Selling Covered Calls on High Dividend Paying Stocks  0 comments
    Oct 18, 2010 8:46 PM | about stocks: ENP, FR

    Searching the database stocks that pay high dividends with a view to selling covered calls to enhance the returns revealed some interesting prospects.

    In order to come up with results in an effective manner we searched for Covered Calls with at least a 2% return and stocks with dividend yields of 6% or better with an expiration of 11/20.

    The goal is find stocks we want to hold long term, with great yields and enhance that yield by selling Covered Calls.

    The first Covered Call that came up on the list was (NYSE:FRO).  Frontline Ltd has a dividend yield of 10%, P/E of 13.65, and 3.48% out of the money (OTM) covered call with a ROI of 2% for 33 days.   The goal is for the call option to expire worthless and repeat the process again. 

    The next Covered Call was for (NYSE:ENP). Encore Energy Partners has a dividend yield of 10% and P/E of 25.  For the purpose of a long time hold we view the P/E as too high and starting to reach a growth company verse and buy and hold value play.

    The complete list is shown below. More choices can be found by including all expiration months.

    Stocks: ENP, FR
Back To MTRIG's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.