Stocks of Interest - and Covered Call Strategy with 12% return - Market closing 3/11/2015

Trucharts.com - Markets Update and Stocks of Interest and Covered Call Strategy for BIDU

Markets were in an oscillation mode today and we had several negative and positive readings. But at the end of the day - markets ended down. We shorted UAL today - even though it was up today - our position in BOX stock is doing well (we write covered calls and / or covered puts on our longs/shorts) as needed based on market conditions.

We still expect SP to test 2025 and the Euro to go below par to the USD - our target is 0.90 - 0.95 - currently it is at 1.056 approximately.

We are short AEM and UAL. Stocks long positions are BOX, TWTR, USO, DATA, Z. 

Looking to go long BIDU - chart here - www.trucharts.com/stockview.aspx?TICK=BIDU - we like the stock primarily because it looks oversold and the call premium is very good and therefore the short term returns with covered call writing will provide a good return on the investment. Be aware that this a volatile stock. 

So let us say you buy 100 shares on margin - for 2 months - margin rates vary but are around 2-4% currently.

The covered call for near the strike price of 205 for APRIL 17 2015 is around $5.00 - so you will collect 500 as premium for one month and then your cost will be around 200. Let us say on April 17th the stock is at 200 and your call expired worthless (205 strike) - you can write the 200 call for May 15th around that time should be around $7 and you collect 700. Your total investment on margin at 50% is $10000 and you collected $1200 as premium on the calls and your cost went down to around $193.  BIDU call writing makes lot of sense and therefore we are looking to do this trade.

TruCharts team