Covered Call Screener
A solid covered call screener(sometimes called a covered call
scanner) in your trading arsenal will cut down the time it takes to find the best
quality trades that have the best (not allways the fatest) premiums. With a good covered calls
screener, you can spend your time analyzing your potential covered call picks picks versus searching all over
One caveat however; just because a stock and
lucrative call is listed DOES NOT MEAN you just trade it without doing your homework. I
have never seen a covered call screener that took market conditions, sector conditions and stock news into
account. As a smart and profitable trader, you need to do this yourself. The best stocks for covered calls
take in account news, investor sentiment and analyst ratings. Sometimes when you see a really FAT premium, it
means there may be a LOT of risk. Stay away.
Weekly, Monthly and Longer Scans
A solid scanner can be set up to match your investment style; are you selling weekly, monthly or
longer-dated calls? Also, are their certain stocks and sectors you want to eliminate, how much in the money or
out of the money is appropriate for the current market conditions, etc. Also, you need to be able to select
volume and option interest levels to make sure their is liquidity to manage the trade.
Nifty Covered CaLL Calculator and Portfolio
Once you select the stock and strike, it's handy to enter these
into a Portfolio Manager to keep track. What is really nice is to see visually, either in text or a bar chart,
exactly how much profit you have made so far on the trade and what is left. With the covered calls calculator
you can instantly see how much time premium is left and or intrinsic value so you don't waste a second in
rolling over to a new set of strikes. This alone can optimize the call writing process and add another few
percent a year.