With covered calls, I look for cheap underlyings with high implied volatility rank/high implied volatility and setups that will produce at least a 10% return if called away at the short call strike.
WFT fits the bill, with a rank of 72, an implied of 84, and a 13.06% return if called away at the nearest out of the money strike.
Here's the setup:
Buy 100 shares WFT at 8.52
Sell 1 Feb 19 9 short call
Entire Package: 7.94 ($794)
Max Profit: (If Called Away at 9) $106
WFT fits the bill, with a rank of 72, an implied of 84, and a 13.06% return if called away at the nearest out of the money strike.
Here's the setup:
Buy 100 shares WFT at 8.52
Sell 1 Feb 19 9 short call
Entire Package: 7.94 ($794)
Max Profit: (If Called Away at 9) $106
Comment:
Rolled my 9 short call down to the 6 for a .67 credit.