With an implied volatility rank of 96 and favorable break even metrics for the setup, JCP presents a fairly decent covered call opportunity here.
Buy 100 shares JCP at 6.63
Sell 1 Jan 29th 7 short call
Entire Package: 5.94 debit ($594) (which will be your per share break even -- $5.94, which is slightly above the 52-week low)
Max Profit: $106 (if called away at $7)
I look to take these off intratrade if the profit exceeds what I would make if called away; otherwise, I continue to sell short calls against (or roll the short call when its value reaches near worthless) at strikes at or above cost basis break even.
Buy 100 shares JCP at 6.63
Sell 1 Jan 29th 7 short call
Entire Package: 5.94 debit ($594) (which will be your per share break even -- $5.94, which is slightly above the 52-week low)
Max Profit: $106 (if called away at $7)
I look to take these off intratrade if the profit exceeds what I would make if called away; otherwise, I continue to sell short calls against (or roll the short call when its value reaches near worthless) at strikes at or above cost basis break even.
Comment:
Didn't get a fill today, which isn't necessarily a surprise, it being Monday. I may try again tomorrow if implied volatility rank remains high ... .
Comment:
This still looks like a fairly good setup, although the premium isn't as rich to the call side as it was when I first posted and the break even is now north of $6.15/share if you go with a Feb 19th expiration for your short call ... .
Comment:
Filled for 6.36.
