Watch List

GG,STLD,CHK,HK,ANR,DVN,NUE.

CCs 5A

Looking for stocks whose Ret "A">5>Premium@strike>3>Ret@ITM

OTM: FCX,ANR,DRYS,CLF,FSLR,LEH,SPWR,

Sim Bull Spread

Tested on AAPL a synthetic covered call. Situation I intend to use this is when ZLR or RSI rises from oversold.

Use cc 30 200 5A ATM to screen stock. 2 strikes giving high premiums.

Stock price when bought 187.88
.apvfr@6.01 (190C)
.apvfs@-3.94 (195C)
.apvrq@-5.29 (185C)

Net credit is 3.22. BE for stock is 184.66. WWDC round the corner. iPhone 3G expected. Other surprises may be instored.

Also tried using CC 30 200 5A OTM. This time RIMM.

Stock price when bought 137.26
.rulfh@3.46 (140C)
.rulfi@-1.7 (145C)
.rulrw@-3.94 (135C)

Net credit is 2.18. BE for stock is 135.08. RIMM has new models and earnings at the end of month.

Another one is ANR. Stock @85.66
.anrfq@5.71 (85C)
.anrfr@-3.29 (90C)
.anrrq@-4.39 (85P)

Net credit is 1.97. BE for stock is 83.69. This seems to have higher ROI if assigned. However, this stock was bought at market price - try to avoid in future. China just raised coal price today so bull run expected.

Learn to see how to maintain and repair.

Be faithful. Sim trade first. Fear vs Greed ! Ultimately, have to trust.

News

1. Lehmen brothers to raise US$3-4 billion. Needs to deleverage. Markets guessing they will report a bad quarter on June 16. Stock price took quite a hit after rising last week.
2. China's Yanzhou raises 2008 coal export price. Likely buffering for their winter ahead. Could bode well for ANR, FDG.
3. S&P cuts ratings on MER, LEH and MS.