rjm77me's Blog : Covered call plays - make your own dividend play

Here are some of the stocks for coverred call plays - meaning buy stock and sell stock

STI HAS HIGH VOLATILITY - means one could have bought stock today at 22.50 and sold Oct 22.5 call for $1.05 meaning your cost is reduced to 21.5
My stop loss with trade is 21.6 - meaning call will be worth 50 to 60 cents and will buffer my loss.

I had last bought at 22.17 few days ago and will buy if it dips below 20.6
First support at 20 then at 16.
My 1 year target is 30 as long as market holds its ground and slowly moves up.

I have been a trader in STI over last three months in trading account.
It made me about 7% a month. As a down side hedge one can buy Nov 22 put at 1.8 and sell Nov 21 put at 1.35 - cost 45 cents - provides protection to 21 for next 2 months. One caution, please check cost option trading in your account.
My cost for option trading is low with trade Station ($1 per contract and no ticket charge)

My other option write play is WFR - closed at 16.55 and Oct 17.5 call sells at 50 cents. My stop loss will be 15.90 - partially off set by option sold by me.

Please remember down side protection is what you get by writing a call minus trade cost.