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Sunday, September 30, 2012

No Calls To Sell

At this moment in time, Sell The Call has chosen not to sell calls against shares owned......yet. Sell The Call currently owns shares in Alcoa (AA) and OCZ Technology (OCZ). For different reasons, Sell The Call is waiting to make the next covered call trade for both companies.

Alcoa is currently trading at $8.85. The current cost basis of the shares is $10.40. Because Sell The Call does not want to sell calls that are longer than 3 months, there are no profitable trades available. Dividends of the shares will currently be the income portion of the trade and lower the cost basis. As the price of aluminum has increased 15% over the last month, Alcoa's share price should increase as its earnings reflect the aluminum price increase.

OCZ is currently trading at $3.47. It has had a bad month punctuated by the removal of the CEO after a failed attempt to sell the company. The next earnings call for the company is coming up in the next couple of weeks. Anything could happen on this conference call. Sell The Call feels that the bad news for the stock is already shown in the share price. If the cc does not prove positive for the company, Sell The Call will sell the stock. If the cc does prove positive, Sell The Call feels that the stock will move considerably higher compared to its current price and allow for a profitable covered call trade.

If you are interested in futures options or futures etf options, Sell The Call is now following Trading Futures ETF Options.

** Disclaimer** - Sell The Call is simply posting information. This is not a recommendation to buy or sell any of the securities above. Do your due diligence before investing as there is risk to all investments. Be sure to Like ourFacebook page, and follow Sell The Call's Twitter and Stocktwits pages.

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