covered calls beavis

Here are today's Covered Call Picks for Tuesday 03-06-2012.

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.

Stocks Fall: Told you So

300 Movie - Cliff

Mastery has been warning you for weeks this was coming. 

We've been pushing a large cash position and suggesting you load up on the iPath S&P 500 VIX Short-Term Futures ETN (VXX). The proof can be read in Where's the Volatility?, U.S. Equities: Not Buying it for a Dollar and Feels like a Correction is Coming.

Beastie Boys - Licensed to Ill Tape

We review the week and check out some stock picks that are fresh and illin'.

Highlights of a rather boring trading week included the following:

Where's the Volatility?

Where's the Beef

Mastery doesn't believe this tape can continue at this rate.  The Beef is coming.

Volatility has been calm since the Dow Jones crossed 13,000.  Despite the fanfare there is one play that will provide insurance should them market not sustain itself.  The trade is the iPath S&P 500 VIX Short-Term Futures ETN (VXX).

The Fear Triangle appears Complete

Grim Reaper.jpg

The market seemed to forget about Greece last week, but one has to wonder.  Are the constant delays in negotiations just stalling tactics to prepare for a Greek default?

The TVIX chart has formed a triangle.  The measured target of a triangle breakout is $23.35.  This week watch for a potential breakout of the triangle about February 23rd with&n

Volatility - Large Pic

Volatility is back and we turn to for the breakdown.

The trade this week was not Apple Inc (NASDAQ:AAPL) hitting $500. It's been the iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX) and yesterday the fund finished up 5.6%.

Stocks: The Week of Cut & Paste

Cut & Paste - CTRL C CTRL V

Greece can't resolve its issues. They are the dog chasing its tail and our equities are stuck in limbo.

Yesterday the Masters sold off their positions and are now sitting in 90% cash, we talked it up in Feels like a Correction is Coming.  The only recommendation we made was the  iPath S&P 500 VIX Short-Term Futures (VXX) which happens to be up 3% today.  The only sure bet for the next few days is volatility.

Enter the Dragon - Bruce Lee (Before Kicking)

Today's tape feels like the calm before the storm.  The only winner today is the VXX.  Time to get Cash.

If I read another 'NBA' article, the new acronym that is making the rounds on the internets (Nothing But Apple) I'm going to shoot myself.  The iPath S&P 500 VIX Short-Term Futures (VXX) is up 7% today.  Mastery is betting we are in for a huge kick to the face.

Fear is Back with a Vengeance

Grim Reaper.jpg

The Volatility Index (VIX) went parabolic last week amid Greek fears and Italian bank downgrades.  Hedging against fear is back in style.

It was warned last weekend that a new bear market is looming.  Consider this a second warning from the Grim Reaper.

Jason Voorhies

It's the first Friday the 13th of 2012, and Jason has awoken to chase down investors and cut off their limbs.

The major indices are down about 1% so far today, as the 2012 bull run has been snapped.

Could it be time for the Negative Nancy index?