Covered Calls Advisor Helps Dividend Investors Find Covered Calls Options Trades; It Is Free
The strategy is simple. Pick good under valued dividend stocks. I pick stocks with active and liquid options that can be used to generate weekly and monthly income by selling covered calls and puts.
By Donald E. L. Johnson
Cautious Speculator
Covered Calls Advisor posts Jeff Partlow’s covered calls trades.
He posts the size and cost of the trades as well as the profits and losses.
Investors can save a lot of time and effort by doing their versions of Covered Calls Advisor’s trades.
Wall Street’s analysts have high target prices for Covered Calls Advisor’s current seven stocks.
The stocks’ technicals and fundamentals are discussed.
Covered Calls Advisor by Jeff Partlow shows seven bold and interesting open covered calls positions on recently purchased stocks that are profiled below.
Please click on the images and zoom in for better views.
Like Covered Writer, which regularly posts its mostly cash secured puts trades on SPY, DIA, QQQ, IWM and other exchange traded funds that track stock indexes, Covered Calls Advisor is a free site. So is this one for now and maybe forever. Most stock options sites’ subscriptions cost $150 to $500 and more per year.
The writers of those two sites and I began trading covered calls 14 or 16 years ago and frequented a Yahoo.com covered calls discussion group that is defunct.
I wrote about Covered Writer on Jan. 21, 2022.
The first thing I noticed about the Covered Calls Advisor’s current portfolio is that their charts all sport bearish death crosses. Their 20-period moving averages are under their 50-period moving averages. AEO is close to being over sold with a RSI of 38.45. LEN also is near being over sold with a 39.84 RSI. A RSI over 50 is generally considered bullish and over 60 is considered a relatively strong buy. The actual trades are posted on the site.
That Partlow made the trades and wrote covered calls on them to generate premium income shows that he is bullish on the stocks.
This table from StockRover.com shows that the seven stocks are trading at an average of about 73.8% of their 52-week highs. They are at 94% of their 50-day moving averages and 90% of their 120-day moving averages. Their earnings yields average a nice 9.8% with 2.2% dividends and 1.4% buy back yields.
Partlow is still publishing his trades after 14 years because he’s a good stock picker and his covered calls trades do well.
Here, he has picked nice, low price to free cash flow ratio (P/FCF) stocks. The average stock is trading close to Stock Rover’s fair value estimates (FVE). That shows that the markets like the stocks pretty much where they are.
And analysts are bullish on all seven stocks. The stocks are trading about 37% below the analysts’ target prices and at about 60% of the highest analysts’ target prices for each stock.
The premiums on these stocks are good. They are moderately volatile with 1.2 betas.
What a reader gets from Jeff Partlow’s Covered Call Advisor are:
Good speculative stock picks, which is key to successful covered calls trading for income.
Options trades that are picked by a very experienced and successful investor and trader.
Detailed explanations of trades, likely results and possible scenarios .
Full reports on the results of each trade.
Jeff Partlow’s views of the markets and his opinions about whether considers the markets bearish or bullish. He publishes a market meter.
How traders use the information published on our blogs is up to them. A lot of people simplify their trading lives and save a lot of time by doing some or all of the trades that are posted on Covered Calls Advisor and Covered Writer or on this web site.
Some readers will decide to follow all three sites, one or two, or none. That is up to the readers.
We bloggers hope our ideas and posts will help more people learn to trade covered calls and cash secured puts and use their skills to enhance their dividend incomes and their investments in stocks and ETFs.
The reason I link to Covered Calls Advisor and Covered Writer and promote them is that we’re all trying to help our readers learn to trade covered calls and cash secured puts profitably.
The more traders we can attract to the stock options markets, the more active and liquid those markets will be. Active, liquid and deep options markets are easier places to get orders filled than illiquid ones.
I don’t think there is a better way to beat inflation than to trade covered calls and puts. Premium income also softens the blow when markets decline. And if more retired people learn and use their trading skills, there won’t be so many poor, bored retirees.
Please post your ideas and questions in the comments section below. Jeff, if you have corrections or comments, feel free to use the comments section.
And please subscribe. It’s free for now.
LINKs:
Home Page. See previous articles on other stocks and watch lists. If you read several of these articles, you’ll learn how this strategy is meant to work. No guarantees. Links to useful web sites are on the lower right corner of the home page. Scroll down.
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Calls vs Puts Options: What’s the Difference?
12 DJI 30 Stocks Are Winners Year to Date; Good Covered Calls, Options Trades Ideas.
8 Stocks on $25,000 Covered Calls Watch List
If You Buy These 10 Stocks And Sell Covered Calls, Your Premiums Plus Dividends Could Top 10%
10 Dividend Stocks That Look Underpriced; Generate Premium Income By Selling Puts
Wars Breed Inflation, Rising Interest Rates, Market Turmoil
A video on how to place options trades on Think or Swim.
Beware
Like all investing, trading stocks and options is risky. If you can’t sleep with market risks, you might want to let someone else do your trading. Consider an option trading ETF like XYLD, which I own. I also trade its calls and puts. I’m an active private speculator who trades covered calls and sells puts on stocks for my accounts. I am not a professional analyst nor a financial advisor. I don't take and won't take responsibility for how other people trade. This article is for educational purposes only. It is not advice. The data presented looked accurate at publication time except for intra-day fluctuations, but I can’t guarantee the accuracy. Traders should do their due diligence. I own and/or have options positions on several of the securities mentioned above. I reserve the right to trade any of the listed stocks and options at any time. I receive no compensation for producing this content or for any links.
@realDonJohnson. Because I don’t want to litter subscribers’ in boxes with emails, I write only one or two newsletters a day. I’m active most days on twitter where I tweet about stocks, options trades and other topics.
I like that Covered Calls Advisor page a lot. I went ahead and bought 100 shares of EOG Resources yesterday and sold a covered call on it. Looking at what it is doing today, I guess I should have sold it a little further out of the money. :)
And when reading the Cash Secured PUT page, his collection of premium amounts equal about what I have been collecting over the last few months, so I am glad to see that I am collecting near the same amount of a long time pro. It reaffirms to me that I am learning and replicating a generalized winning process.