Covered Call is probably one of the most used strategies. A Covered Call write is the simultaneous purchase of a round lot of common stock and the sale of an equal amount of call options against it (e.g., buy 500 shares of common and sell 5 calls).

In PowerAnalyzer service we provide you with the unique capability to customize your search for the best Covered Call.

By clicking on the drop down menus below you can see all the choices available for your customizable searches.

Parameters

1. Select Covered Call Type
• In-the-money Covered Call - Allows to search through Covered Calls where selling Call strike is below Sock price.
• Out-of-the-money Covered Call - Allows to search through Covered Calls where selling Call strike is above Sock price.
• Both types of Covered Call - Allows to search through both types Covered Calls, but because we are providing only ONE result per stock, you will get the TYPE of Covered Call for the stock, where Primary criteria is higher.
  
  For example, you selected Estimated Return as the primary criterion. In-the-money Covered Calls usually give you lower Estimated Return, but higher Probability of Success than Out-of-the-Money Covered Calls. The reasoning behind this is due to Out-of-the-money Covered Calls giving you very little room for the stock to fall back before it exceeds profit zone. This is why Probability of Success for this type of trade rarely exceeds 55%. On the other hand, In-the-Money Covered Calls can give you a substantial buffer for the stock to fall back before you get out of the profit zone. This increases your probability of success but as usual your trade is at a lower Estimated Return. Pertaining to our searches, because we providing only one result base on primary criterion, if you use "Both Type …" selection with primary criterion "Estimated Return" and secondary criterion "Probability of Success" > 70%, you will miss Covered Calls where Probability of Success will be higher than 70%, but "Estimated Return" will be lower than other Covered Call for the same stock, who has higher "Estimated Return", but lower "Probability of Success."
2. Set Underlying Price Range
Select Underlying Type (Stocks or Index are your only 2 choices)
Set Price Range (10 < Stock < 100  Stocks between $10 and $100)
3. Select Volatility and Time
Select Volatility to be used in calculations (default is 1 Day Implied Volatility, but you can change it to 5 Days, 20 Days or 100 Days Statistical Volatility).
Number of Days to Expiration defines, which expiration months will be used.
4. Primary Criteria. Choose one of the following five. "Estimated return" is always a safe choice.
Theta - The daily time decay of the position.
Time Premium - The total time value of the position.
MAX Return - Maximum posible profit devided by investment.)
Estimated Profit/Loss - Profit/Loss weighted by probability of each Profit/Loss happening.
Estimated Return - Estimated Profit/Loss as a percent to investment. 

5. Secondary Criterions
Estimated Profit/Loss - Very important parameter, which represents Risk/Reward potentials of your trade.
Probability of Success - Probability that Profit would be greater or equal 0.
Option BID Price - Set the price range for the Call option
6. Customize Your Report
Sort By - Defines the field that final Report will be Sort by. "Prime criteria" is usually your best choice, since that is what you selected for your Primary Criteria.
Sequence: Ascending or descending sort.

The following is a sample report that was generated by using the default criteria for everything except for the fact that "Estimated Return" was selected as the Primary Criteria. Notice that, on the output, your selection criteria are printed and then the list of covered writes is shown. There is always the possibility that bad data can work its way into the list, although we do a great deal of screening to try to weed out bad data. Thus, it is up to the individual using this report to verify that current prices correspond with the prices in this report. One good rule of thumb is to be very skeptical of things that look "too good." There are no free lunches on Wall Street.