Alcoa: A Simple Strategy That Could Net You 13% And Lower Your Entry Cost [View article]
I'd rather buy the stock between 8.50 and 9.50 and sell the Jan 2104 $12 calls for $.70-80 and take the next $.21 in dividend if I don't get called before Jan 2014. That gives me $.91-1.01 or 10-11% or 5% per year. If I get called who cares that's another 2.50-3.50 PS. If AA goes down I buy more stock or buy the leaps back and start over again.
Or you could buy it now at $9 PS and sell Jan 2014 $12 Call for $.77 and get two years dividends of .12. Your return would be .77 + .24 = 1.01 or 11.2% or 5.1% per year. If it goes to $12 you get called and make another 11%.
The Dark Clouds Looming Over Alcoa And Aluminum [View article]
Buy and hold may be dead but buy low sell high isn't. If you can get a treasury yield of 1-2% to hold a stock for 2-3 years that could double that's better than bonds which could easy go down as rates move up/
I Like Alcoa, But When Should I Get In? [View article]
Alcoa: A Simple Strategy That Could Net You 13% And Lower Your Entry Cost [View article]
Is It Worth Getting Into Alcoa? [View article]
The Dark Clouds Looming Over Alcoa And Aluminum [View article]