In 1651 John Milton composed a sonnet regarding his blindness and talent. In it, he pondered the cruelty of his blindness robbing him of the ability to pursue his writing talent. We all have a thing, which we’re best at. An economist would argue that we ought to spend our lives working at our most productive vocation.
In return, we can trade what we earn from our gift for the things we need produced by others. Suppose, for example, Tiger Woods were an exceptional computer programmer. Even if he were a better and more efficient computer programmer than most, he should still allow someone else to program for him because his time can be more productively used elsewhere.
Unfortunately, we can’t hire Tiger Woods to take our golf shots. However, you can get sage expert advice to help guide you toward a more sensible options trade by using the tools offer by PowerOptions. Each day, the PowerOptions website generates over 20 reports that can guide you toward a sound and lucrative trade.
One stock that appeared in a recent PowerOption’s five-star covered call report (these are five-star stocks that are on an uptrend) is Garmin Inc (GRMN). Garmin is the well-known manufacturer of fixed position global positioning system equipment. Currently, the Garmin’s P/E is near 30 and its price is on an uptrend.
Below are the covered call trades that the five-star report on PowerOptions returned:
| Five-star covered call search for November 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
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| GRMN | 46.77 (+0.27) | GQRLI | 06 DEC 45.0 (43) | 3.2 | 6.8 | 3.3 | 3.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GRMN | 46.77 (+0.27) | GQRLJ | 06 DEC 50.0 (43) | 1.1 | 2.4 | 2.4 | 9.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The first trade (GQRLI) offers the security of solid 6.8% downside protection with a respectable potential return of 3.3% for a covered call expiring in only 43 days. The second trade (GQRLJ) provides less downside protection (2.4%), but offers greater potential profits if the underlying stock (GRMN) should rise.
If Garmin’s stock price remains unchanged until expiration, the GQRKK covered call will return 2.4%, but if the price of GRMN’s stock rises to $50 or greater, the position would return 9.5% on options expiration day in December.
These trades illustrate how a subscription to the PowerOptions website can help you make timesaving and more informed trading decisions. PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. If you are seeking to execute a covered call investment strategy for your personal portfolio, PowerOptions provides an Internet based search that can help you identify covered call option positions.
PowerOptions’ sister company PowerOptionsApplied provides expert stock option trading recommendations. PowerOptionsApplied specializes in covered call, naked put and iron condor stock options strategy recommendations. PowerOptionsApplied provides a 30-day risk free trial of its service.
[tags]stock price, covered call investment strategy, investment strategy, iron condor, option income, poweroptions, stock option trading, stock options, GPS, Garmin GPS[/tags]