I have been trading covered calls for about 3 months. I have had a profitable run. I spend an awful lot of time doing the research needed to pick stock that have a high
premium return. As you know not all the good stocks traded can be profitable under this scenario. Would you advise subscribing to a service that would do the
research and submit a list of possible picks. By having a list available, I can then concentrate my research.
Are there any you would recommend???
Thank you so much for any assistance you could advise.
I believe, as you do, that stock selection is extremely important in determining your long-term success with the strategy of writing covered calls. But, where we disagree is on the importance of finding stocks that 'have a good premium return.'
I believe it's important to own stocks you want to own and not simply a portfolio of high premium stocks.
Most evidence suggests that professional stock pickers do no better than the average individual investor and thus, I DO NOT recommend using a service to pick stocks for you. To me, if someone has the ability to pick winnings stocks, that person would buy his/her own picks and not sell the list to individuals.
Be patient. You are early in your option-trading career and can build a list of suitable stocks over time.
Mark D. Wolfinger
The Rookie's Guide to Options:
The Beginner's Handbook of Trading Equity Options