Sling Blade Covered Calls

Here are today's Covered Call Picks for Thursday 12-06-2012.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

RIM Bounces Back

RIM - Large Hindenberg Pic

Right before our eyes RIM shares have bounced back 50%

Hard to believe but Research in Motion (RIMM) shares have rallied back from a $6 stock to almost a $10 stock.  So the Blackberry isn't dead yet?

Dumpster Diving for Stocks

A month later we go back in the trash, turns out NOK has bounced 70%.

Mastery goes back to the trash a month later and finds the big winner of our 'Dumpster Dive Stocks' is Nokia (NOK) up more than 70%.  Not doing well are shares of AMD (AMD) and Research in Motion (RIMM).  However AMD should not be left in the garbage but RIM is nothing but rubbish.


RIM - Large Hindenberg Pic

The numbers for Research in Motion's Blackberry continue to deteriorate Hidenberg style.

Research in Motion (RIMM) is nothing compared to the iPhone by Apple (AAPL) and Google's (GOOG) Android based phones.  RIM will never catch its competitors, even Nokia (NOK) has a better chance at a turnaround. 

Thinner Movie

RIM will starve itself to death to become successful again.  It won't work.

Billy Halleck had an easier time surviving in the movie "Thinner" than Research in Motion (RIMM) will have becoming (as their CEO said) a "lean, mean, hunting machine."  Sure they will.


Dumpster Diving for Stocks

These stocks are either super bargains or all out trash.

Trading terrible and lying in the dumpster today are shares of Research in Motion (RIMM), Advanced Micro Devices (AMD) and of course Nokia (NOK).  Let's get dirty with these down on their luck companies.


Banksy - I want Change

Enjoy the 4th of July Holiday and since the market is closed we review the week.

July 4th 2012 is here and volatility while it stays (hopefully at record lows).  None the less its time to review some of the best stock picks of the week including some defensive plays, short squeezes, and anything but RIM.

Sling Blade Covered Calls

Here are today's Covered Call Picks for Monday 07-02-2012. These are for the August Strike.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

Horrible Bosses - Coke Spill Cocaine

Research in Motion takes a page from Charlie day and drops a fortune on the ground.

Research in Motion (RIMM) shares fell19% on Friday for a YTD decline of 49%.  Cue Charlie Day and team from Horrible Bosses and dump the coke on the floor.

Apple Inc - All Kinds of Apples

Not a day goes by that Apple Inc. doesn't make the internets headlines.  Time to buy?

The short answer, yes it's time to buy Apple Inc (AAPL) but don't expect an incredible return on investment. At this point you should not expect to achieve the average analyst 12 month estimate of $708.  That's a big 35% increase in share price if you bought Apple today.