Covered Calls..

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. Below is a fully functional search form, which is based on real, but old data.


Set Underlying Price Range

<

Price

<

Select Volatility and Time

AND Number of Days to Expiration

Primary Criteria

Secondary Criterions

Estimated Profit/Loss

Probability of Success

<

Option BID Price

<

Customize Your Report

Sort By

Sequence

Parameters .

  1. Set Underlying Price Range.
  2. Select Underlying Type (Stocks or Index are your only 2 choices)
  3. Set Price Range (10 < Stock < 100  Stocks between $10 and $100)
  4. Select Volatility and Time.
  5. 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).
  6. Number of Days to Expiration defines, which expiration months will be used.
  7. Primary Criteria. Choose one of the following five. "Estimated return" is always a safe choice
  8. Theta. The daily time decay of the position.
  9. Time Premium. The total time value of the position.
  10. MAX Return (Maximum posible profit devided by investment. Investment is underlying bought on 50% margin minus credit for Call sold.)
  11. Estimated Profit/Loss (Profit/Loss weighted by probability of each Profit/Loss happening.)
  12. Estimated Return (Estimated Profit/Loss as a percent to investment. Investment is underlying bought on 50% margin minus credit for Call sold.)
  13. Secondary Criterions.
  14. Estimated Profit/Loss (Very important parameter, which represents Risk/Reward potentials of your trade.)
  15. Probability of Success (Probability that Profit would be greater or equal 0.)
  16. Option BID Price (Set the price range for the Call option)
  17. Customize Your Report.
  18. 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
  19. 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. In the following list, the first item is a "Russell 2000 Index (RUT)" Sep 550 option, but the price of the underlying is listed as 10.3125 – clearly an error. 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.


CALL WRITING REPORT.

Set Underlying Price Range

0 < Stock Price < 1000

Select Volatility and Time

1 Day Implied Vol. AND Number of Days to Expiration < 75

Primary Criteria

Estimated Return > 0

Secondary Criterions

Estimated Profit/Loss > 0

Probability of Success > 50

0 < Option BID Price < 1000


All data is as of closing on Tuesday, 08/01/00 .

Copyright © 1996 - 2000 ... EzTrade.com ...All Rights Reserved
Nbr. Symbol Description Est. Return Stock Price Exp. Month Strike Bid Est. P/L Prob. 1 Day Impl V.
1 RUT MERRILL LYNCH & CO INC 922.82 10.3125 09/16/00 550 3.875 47.58 58.99 593.75
2 IATV A C T V INC 34.89 14.125 09/16/00 45 1.5 2.46 61.97 105.02
3 SONE S1 CORPORATION 33.49 18.125 09/16/00 125 0.9375 3.03 54.47 135.12
4 GCR GAYLORD CONTAINER CORP 32.29 2.875 09/16/00 10 0.0625 0.46 51.7 149.63
5 PSIX PSINET INC 29.62 16 09/16/00 22.5 2.25 2.37 64.61 115.2
6 TLSP TELESPECTRUM WRLDWIDE INC 26.84 2.8438 09/16/00 7.5 0.0625 0.38 51.84 139.03
7 WRLS TELULAR CORP 25.2 14.0625 09/16/00 30 0.5 1.77 53.06 135.66
8 CYCH CYBERCASH INC 23.83 4.5 09/16/00 12.5 0.0625 0.54 51.22 132.17
9 NPLS NETWORK PLUS CORP 23.21 12 09/16/00 40 0.125 1.39 50.93 129.91
10 ATVI ACTIVISION INC 23.15 8.8125 09/16/00 20 0.5625 1.02 58.06 92.5
11 CLRN CLARENT CORP 22.32 38.375 09/16/00 90 0.5 4.28 51.13 134.22
12 CBMI CREATIVE BIOMOLECULES INC 21.43 8.5313 09/16/00 17.5 0.125 0.91 51.16 145.13
13 CONV CONVERGENT COMMUNICATIONS 20.65 4.125 09/16/00 15 0.0625 0.43 51.48 118.62
14 GMGC GENERAL MAGIC INC 19.43 5.0938 09/16/00 10 0.0625 0.49 50.98 146.21
15 GWRX GEOWORKS CORP 19.11 13.875 09/16/00 30 0.0625 1.33 50.39 134.36
16 XICO XICOR INC 18.7 8 09/16/00 12.5 0.5 0.75 55.31 137.96
17 DRMD DURAMED PHARMACEUTICALS 18.45 5.6563 09/16/00 12.5 0.0625 0.52 51.05 121.55
18 CAMP CALIFORNIA AMPLIFIER INC 18.22 29.3125 09/16/00 55 0.5625 2.67 51.65 135.17
19 SSTI SILICON STORAGE TECH INC 18.02 59.6875 09/16/00 120 0.6875 5.38 51.04 128.85
20 LGTO LEGATO SYSTEMS INC 17.59 9.1875 09/16/00 30 0.0625 0.81 50.69 113.99
21 RHAT RED HAT INC 17.54 19.25 09/16/00 50 0.0625 1.69 50.32 118.17
22 ZIXI ZIXIT CORP 17.36 41.6875 09/16/00 65 2.5 3.62 54.49 156.65
23 TSCC TECHNOLOGY SOLUTIONS CO 17.19 4.2813 09/16/00 30 0.125 0.37 53.52 95.86
24 VYTL VIATEL INC 17.19 12.75 09/16/00 20 0.6875 1.1 54.54 138.7
25 FIBR OSICOM TECHNOLOGIES INC 17.06 51.4375 09/16/00 100 0.5625 4.39 50.99 128.96
26 MRVC M R V COMMUNICATIONS INC 16.87 52.125 09/16/00 100 0.625 4.4 51.09 128.56
27 NETP NET PERCEPTIONS INC 16.57 12.0625 09/16/00 20 0.4375 1 52.99 141.63
28 ITXC ITXC CORP 16.56 18.5 09/16/00 35 0.25 1.53 51.24 126.7
29 OPTV OPENTV GROUP 16.27 45.9688 09/16/00 130 0.25 3.74 50.57 110.82
30 PUMA PUMA TECHNOLOGY INC 16.24 18.3125 09/16/00 30 0.6875 1.49 53.26 134.35
31 ELCO ELCOM INTERNATIONAL INC 16.13 5.7188 09/16/00 10 0.125 0.46 51.85 137.54
32 GSLI GSI LUMONICS INC 15.91 26.625 09/16/00 45 0.75 2.12 52.4 137.03
33 MRVT MIRAVANT MEDICAL TECH 15.78 18.875 09/16/00 35 0.3125 1.49 51.63 118.21
34 NGEN NANOGEN INC 15.7 27.75 09/16/00 55 0.375 2.18 51.4 111.84
35 INCX INFOCURE CORP 15.64 5.5 09/16/00 10 0.0625 0.43 50.96 137.52
36 NUS Nu Skin Enterprises Inc 15.58 5.75 09/16/00 12.5 0.125 0.45 52.59 97.19
37 FNV FINOVA GROUP INC 15.35 10.5 09/16/00 17.5 0.3125 0.81 52.76 125.37
38 ANAD ANADIGICS INC 14.62 25.4375 09/16/00 40 1 1.86 53.53 129.64
39 PILT PILOT NETWORK SERVICES 14.62 11.75 09/16/00 20 0.25 0.86 51.92 129.15
40 ELON ECHELON CORPORATION 14.59 36 09/16/00 60 0.9375 2.63 52.45 123.66
41 ZOOX GADZOOX NETWORKS INC 14.5 8.5313 09/16/00 15 0.125 0.62 51.33 128.36
42 INSP InfoSpaceInc 14.42 33.5 09/16/00 55 0.9375 2.42 52.56 127.46
43 GERN GERON CORP 14.35 22.6875 09/16/00 60 0.0625 1.63 50.3 105.78
44 ASWX Active Software Inc 14.26 55.25 09/16/00 80 3.25 3.94 55.46 126.09
45 SIFY SATYAM INFOWAY LTD 14.24 13.4375 09/16/00 22.5 0.3125 0.96 52.18 123.97
46 ISSI INTEGRATED SILICON SOLUTN 14.21 20 09/16/00 40 0.0625 1.42 50.32 114.69
47 NTRO NETRO CORP 14.12 52.375 09/16/00 115 0.0625 3.7 50.13 109.72
48 NEON NEW ERA OF NETWORKS INC 14.09 24 09/16/00 40 0.5625 1.69 52.18 125.49
49 ADIC ADVANCED DIGITAL INFO 14.02 13.6875 09/16/00 30 0.125 0.96 51.05 101.58
50 GLGC Gene Logic Inc 13.91 19.625 09/16/00 35 0.25 1.36 51.26 117.59
51 COVD COVAD COMM GRP INC 13.86 16 09/16/00 30 0.25 1.11 51.78 101.71
52 MCAF MCAFEE.COM CORP 13.81 28.8125 09/16/00 60 0.0625 1.99 50.23 109.91
53 ISLD DIGITAL ISLAND INC 13.7 27.375 09/16/00 40 1.5 1.87 54.89 130.57
54 CNQR CONCUR TECHNOLOGIES 13.59 4 08/19/00 7.5 0.0625 0.27 51.81 162.34
55 CMRC COMMERCE ONE INC 13.52 40.6875 09/16/00 80 0.25 2.75 50.66 107.84
56 ICGE INTERNET CAPITAL GROUP IN 13.49 30.75 09/16/00 75 0.0625 2.07 50.23 103.55
57 MCOM METRICOM INC 13.32 33.8125 09/16/00 50 1.625 2.25 54.5 124.47
58 WSTL WESTELL TECHNOLOGIES INC 13.16 22.375 09/16/00 40 0.1875 1.47 50.82 118.54
59 VPHM VIROPHARMA INC 12.85 17.5 09/16/00 40 0.0625 1.12 50.41 100.35
60 MTSN MATTSON TECHNOLOGY INC 12.8 20.4063 09/16/00 35 0.3125 1.31 51.61 110.38
61 GENE GENOME THERAPEUTICS CORP 12.71 21.5625 09/16/00 30 1.3125 1.37 55.96 119.4
62 VERT VERTICALNET INC 12.69 44.8125 09/16/00 80 0.4375 2.84 51.03 109.8
63 TLCM TELCOM SEMICONDUCTOR INC 12.67 21.375 09/16/00 35 0.4375 1.35 52 118.79
64 LE LANDS END INC 12.67 34.125 09/16/00 65 0.0625 2.16 50.19 111.59
65 IUSA INFOUSA INC 12.6 6.125 09/16/00 10 0.125 0.39 51.92 123.82
66 PWAV POWERWAVE TECH INC 12.47 31.5 09/16/00 50 0.8125 1.96 52.42 124.26
67 ALLR ALLAIRE CORP 12.46 30 09/16/00 50 0.5 1.87 51.67 116.09
68 OMKT OPEN MARKET INC 12.4 6.5625 09/16/00 10 0.25 0.41 53.22 137.98
69 GSPN GLOBESPAN INC 12.32 103.8125 09/16/00 170 2 6.39 51.96 114.39
70 CPTL CTC COMMUNICATIONS GROUP 12.32 24.1875 09/16/00 45 0.0625 1.49 50.27 111.36
71 HYSL HYPERION SOLUTIONS CORP 12.17 25.4375 09/16/00 35 1.625 1.55 55.97 125.38
72 IVIL iVillage Inc 12.17 6.4375 09/16/00 10 0.1875 0.39 52.81 120.56
73 CTXS CITRIX SYSTEMS INC 12.12 14.3125 09/16/00 25 0.25 0.87 52.17 93.05
74 ROBV ROBOTICS VISION SYS INC 12.1 12.8125 09/16/00 22.5 0.1875 0.78 51.74 97.42
75 ASPX AUSPEX SYSTEMS INC 12.09 7.0625 09/16/00 10 0.4375 0.43 55.03 144.03
76 TQNT TRIQUINT SEMICONDUCTOR 12.08 36.875 09/16/00 70 0.125 2.23 50.37 105.29
77 KOPN KOPIN CORP 12 23.5 09/16/00 45 0.25 1.41 51.31 94.25
78 AWRE AWARE INC 11.95 35.625 09/16/00 65 0.1875 2.13 50.57 106.7
79 CMGI CMGI INC 11.9 34.5 09/16/00 70 0.25 2.05 50.88 94.92
80 PCYC PHARMACYCLICS INC 11.88 49.5 09/16/00 80 0.9375 2.94 51.79 123.28
81 WAVX WAVE SYSTEMS CORP 11.86 17.5625 09/16/00 25 0.875 1.04 54.82 119.99
82 NSTA ANESTA CORP 11.84 20.1875 09/16/00 35 0.1875 1.19 50.99 109.48
83 GZTC GENZYME TRANSGENICS CORP 11.79 30.3125 09/16/00 55 0.3125 1.79 51.22 97.69
84 CEPH CEPHALON INC 11.75 41.0625 09/16/00 75 0.1875 2.41 50.5 106.08
85 ARTG ART TECHNOLOGY GROUP INC 11.74 81.5 09/16/00 125 2.375 4.79 53.01 112.34
86 MCRE METACREATIONS CORP 11.72 11.9375 09/16/00 17.5 0.5 0.7 53.98 122.42
87 EPNY E.PIPHANY 11.72 90 09/16/00 170 0.25 5.27 50.31 104.03
88 SOFN SOFTNET SYSTEMS INC 11.7 7.9375 09/16/00 12.5 0.1875 0.46 52.33 117.66
89 CATP CAMBRIDGE TECH PARTNERS 11.59 8.4688 09/16/00 15 0.125 0.49 51.87 91.45
90 CLEC U S LEC CORP 11.55 12.875 09/16/00 17.5 0.75 0.74 56.16 110.45
91 CEGE CELL GENESYS INC 11.47 22.5 09/16/00 35 0.5625 1.29 52.68 108.26
92 PPRO PURCHASEPRO.COM INC 11.45 40.125 09/16/00 65 0.6875 2.3 51.78 111.62
93 COHU COHU INC 11.34 17.5 09/16/00 30 0.25 0.99 51.74 94.77
94 FFIV F5 NETWORKS 11.34 46.5 09/16/00 70 1.4375 2.64 53.28 109.58
95 TERN TERAYON COMMUNICATION SYS 11.26 51.1875 09/16/00 90 0.375 2.88 50.82 103.3
96 TGX THERAGENICS CORP 11.25 7.5 09/16/00 12.5 0.125 0.42 52.04 94.44
97 TFSM 24-7 MEDIA INC 11.18 9.4688 09/16/00 15 0.1875 0.53 52 114.9
98 CLRS CLARUS CORP 11.11 37.0625 09/16/00 60 0.625 2.06 51.89 103.3
99 HLTH HEALTHEON/WEBMD CORP 11.11 12.5 09/16/00 22.5 0.0625 0.69 50.57 102.05
100 NVDA NVIDIA CORP 11.08 58.8125 09/16/00 95 1 3.26 51.91 103.06

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Compute the Results
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Analysis Using Current Prices