In today’s episode, I talk about why I started this podcast and what you can expect in the future. I also mentioned who this show is for and who it’s not for. Listen to the introductory episode below.
Thank you for joining me on the daily covered calls podcast. I am Anthony Pietroske. And since we’re doing the first episode I wanted to give you a short overview of what the show will be about and what you can expect from future episodes.
So first I’ll give you a brief introduction of myself. I have been trading stocks online since about 2005. I started out with just buying and selling stocks and then graduated to options strategies, as far as covered calls, buying and selling puts and spreads and other options strategies. And I’ve been trading online ever since then and I enjoy trading. I enjoy investing. I just love looking for different stocks and new investment opportunities.
So why am I doing this show? If you’ve looked online for covered calls for any amount of time there are a lot of web sites and great web sites, by the way, that focus on covered calls but they take the approach of looking at the option first.
So if you do a search for the ‘best covered calls’ or ‘what covered calls should I invest in’, or what’s the best stock for covered calls, you’ll find some articles but also you’ll find web sites that screen stocks based on the option. Pretty much based on the return you’ll get from that particular stock.
So it doesn’t really focus on the stock. First, the focus is on the option return you’ll get. And the stock is most oftentimes an afterthought.
So I created the show to pretty much flip that and look at the stocks first and look how solid the company is. And then look and see if they are good candidates for covered calls as far as looking at the returns and what you can get as far as the option prices and things.
So that’s the reason why I created the show.. to be a more stock focused approach to covered calls. So who is the show for?
This show is for anyone who’s looking for new covered call opportunities. Maybe you don’t have the time to research or you just think it’s too big of a task. So this is for those who are looking for different stocks or new stocks.
There may be opportunities out there for covered calls that you may not have thought about. Or stocks maybe you’ve never heard of, or researched before. So this will be the show for you if you’re looking for those new investment opportunities as far as covered calls are concerned.
Now I want to get into the format of the show. So as you heard at the top of the podcast this show will be a seven day a week, 365 days a year podcast. Every single day I’ll feature three random stocks. No ETF and no REITs, or real estate investment trusts, so just companies.
And I’ll go over and look at different fundamentals about the company and analyze whether based on that criteria, I think that stock is a go for covered calls or I think it’s a no for covered calls.
So I’ll give you briefly the format so you’ll know going forward exactly what we’ll analyze as far as each stock and each company and how each episode will progress.
So for each of the three stocks that we’re going to discuss on each show first, I’ll give you the stock name and just a very brief description of what the company does. Then, of course, we’ll go to the ticker symbol then we’ll look at the Zacks Rank from Zaks.com.
So Zacks.com has a number rating system from one to five, where one is a strong buy and then five is a strong sell. So we’re looking at their rating there to get a quick gauge of the stock. Now there are other web sites that do the same thing.
Some use it on a letter scale that goes from A through F, where A is a great stock and F is a fail. The reason I’m using Zacks.com is that a lot of websites online you’ll see, they get their information from Zacks. So a lot of brokerage accounts have that information you’ll see at the very bottom. This information was from Zacks.com.
I’m using their site because it’s a trusted source online not because it’s the best or there are no other sites that rate stocks but just because it’s a trusted source so I figure I’ll use that one as a quick gauge.
You can always go online and look at other stocks if you want to get a more rounded view of if they rated it as a buy or sell. Or look at other analysts ratings about the stock.
And after looking at the Zacks Rank, then we’ll look at the price at the time of the recording.
Also looking at a one-year chart history of the stock. Looking at the 52 week high and low, looking at any points of support and resistance of the stock to see what are good areas to get in or out of the stock. Then we’ll take a look at the bid and ask spread for the options.
If you’re going to use covered calls you want to know how wide the spread is between the bid and the ask. Since you’ll be selling the calls for your covered calls at the bid, if you need to buy them back you always want to be aware of how big the spread is.
So you will realize how much money you may lose when you have to buy the option back.
So we’ll look at that and also look at open interest to see what strikes have a particular decent amount of open interest. You always want to be aware of that when you sell covered calls as well.
Update: As of November 2017 I’ll no longer cover news on the show.
And then lastly, we’ll look at any noteworthy news about the stock. So we won’t cover too much on earnings because earnings are always, either have happened or are about to happen, so that’s pretty much standard for any company. Earnings will always be a factor, but news as far as is a company in a pending lawsuit or is there a new product coming out or some kind of government regulation that may or may not affect their future price. So I’ll look at those kinds of things. If there are any I’ll report those for you, if not I’ll just let you know that there is no noteworthy news on that particular company.
And then based on that criteria I’ll look at each of the stocks and determine whether they are a go, that they should be a good candidate for cover calls or if it’s a no, that you should keep it out of your portfolio.
One other quick note about the stock selection. I mentioned earlier that the stocks for each episode would just be three random stocks. The only criteria that they’ll meet are I’ll do nothing that’s under $10.
So there are you can argue, covered call stocks that are under $10. But for the show’s sake, I’m going to keep everything that’s currently trading at $10 or above.
And also everything that has at least an average daily volume of 750,000 shares traded. I’ll also cover that on the description for each stock. But those are the only two criteria. Everything else we’ll look at will just be on a case by case basis.
So it’s not going to be a show of everything that’s presented here is a definite covered call pick, but just more of an analysis and you can make your own judgments and decisions from there.
So there you have it. Thanks for joining me for the first episode of The Daily Covered Calls Podcast.
I’ll try and keep each of the episodes around this length, at least 10 minutes or less. And for the next 10 episodes, episodes number two through 11, I’ll be looking at all 30 stocks on the Dow.
These will be the only episodes that will have a particular theme. Everything else will be random as I mentioned earlier.
So thanks once again for listening to the Daily Covered Calls Podcast. And I’ll see you in tomorrow’s episode where we’ll look at 3M, American Express, and Apple. Take care.
The preceding is for informational purposes only and should not be considered as legal, tax or investment advice. No recommendation has been made to buy or sell any security.
Listen to the full episode below.