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Thursday, March 24, 2011

Market Cap

Overall market capitalization of a company should not be ignored when finding companies to make covered call trades. Recently, Sell The Call made a trade with ZAGG. Even though the entry price for the stock was above the $8.00 minimum Sell The Call has for its trades, the market cap was in the $150 million dollar range, which is low. This low market cap tends to create large moves in the stock. Sell The Call is going to be researching whether there should be a floor in regards to overall market cap before making a covered call trade in a company.

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