Wednesday, November 23, 2011

4 Holiday Covered Call Trades

Everyone could use a little extra cash around the holidays. Here are some ideas
on how you can get some by using in-the-money covered calls with a holiday
theme. And at the end, well show you how you can get a free iPad or gold coin.
December options expiration is on the 17th, so if you put these trades on today
(Nov. 23) you would be in these positions for 24 days. You could buy these
stocks, write calls against them, and then use the cash to pay for your holiday
expenses. So, in that spirit, lets create a few holiday-themed sectors and add
some candidate companies in each one that people should be attracted to while
shopping and partying. (Note: These are examples; you can add your own symbols
to the lists but the point is to have some diversity via different sectors.)
FOOD Archer-Daniels Midland (NYSE: ADM ) Chipotle Mexican Grill (NYSE: CMG )
Hershey (NYSE: HSY ) Starbucks (NASDAQ: SBUX )

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