Good Stocks For Covered Calls

[crimsonghost747]

Hey guys. I know that quite a few of us use some sort of a covered call strategy, either on it's own or as a part of our dividend growth portfolio. Lot's of other threads about the subject too so let's not go into the strategies themselves in this one. Instead, let's focus on which companies are you using right now.

I started a little experiment with WFC and I think the results are promising. However now with the recent rally my shares got called away and at the current levels I don't feel like continuing with WFC.... in my opinion the shares are too expensive for anything short term. I'll take another look if it returns to the $53 levels.

So let's hear it, which stocks are you using currently?

[ChadR]

Currently I'm using T for selling covered calls. I like selling the calls at $40 or higher right now.

[crimsonghost747]

Thanks Chad. I've also been thinking of T. I was also looking at WBA since after the last few days there shouldn't be much downside left and the yield from the option is good.

[fenders53]

I know this thread is old but I am looking at T.  It's tough to find many DG stocks with a  premium that makes it worthwhile now.  With current low premiums I have recently just used CCs if I don't mind getting knocked out of a position due to high valuation.  If in a taxable account the minimal upside doesn;t justify loss of upside potential IMO. Gebnerally speaking of course. When real market volatility someday returns, the game will change.

[crimsonghost747]

Well it's been a year that I asked.
And since then I've used WFC, T, UBNT, AMAT, DAL and WBA. All except DAL have yielded very good results but right now it's hard to find decent premiums so I find myself looking and looking but not really finding anything suitable.

[fenders53]

(08-31-2018, 10:48 AM)crimsonghost747 Wrote: Well it's been a year that I asked.
And since then I've used WFC, T, UBNT, AMAT, DAL and WBA. All except DAL have yielded very good results but right now it's hard to find decent premiums so I find myself looking and looking but not really finding anything suitable.

Market volatility will fix the premiums soon enough.  It makes a huge difference.  CCs are great strategy if you have time to monitor it, and close a position for a small loss when it is clearly prudent.  An especially great strategy in a sideways or slightly bullish market.  The only time I ever got burned was way back.  Start buying volatile stocks and it ends bad if the market corrects.  Trust me on that.  I was a kid but I really burned myself.  Add some margin for a truly epic portfolio  meltdown.  Looking back I am amazed I didn't give up on the markets.  But I recognized the real problem was my gambling instead of investing.  It's all good now.