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CellBlock9 (87.29)

BIDU, 6 month to 1 year covered calls still look good



January 22, 2013 – Comments (0) | RELATED TICKERS: BIDU

I sold placed the BIDU covered call a month ago, as follows,  when the stock price was 97:

stock price 96.92

sold call momth 22-Jun-13    

 sold call strike price 95  

 sold call price 12.38

 break even 84.54

 assigned return 10.46

annual assigned return 25

spread 84.54 to 107.38  

A potential 25 percent annualized return was nothing to sneeze about, but looking thru the rear view mirror, the 100 strike price would have been better. In general use 6 to 12 month covered calls with the just above the money strike price and 5 star stocks.

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