Sample Real Time List™ - SuperPut

On this page: • Sample List - Global Select List • What is a SuperPut? • YOUR FREE SUPERPUT • Interpreting the List • Quick Research • Fresher is Better

You get a Free SuperPut Trade Candidate!   See Below

Sample List:
CW Global Select (Dividends) SuperPuts

Below we present a live Real Time List™: the CallWriter Global Select (Dividends) SuperPut Covered Call list for the next expiration month. This is one of our most conservative lists, composed only of stocks that have been growing earnings per share (EPS) for years, and for the current year, and is expected to keep growing earnings for the coming years. They also pay dividends. Companies that make money and grow earnings consistently and pay a dividend are the most conservative covered call stocks, and highly desirable to long-term investors.

We have obscured the stock name, stock symbol and call symbol for the top 14 highest covered call returns but are making the #15 covered call SuperPut trade candidate available to you for illustrative purposes. This list actually will have as many as 90 trade candidates for each month.

What is a SuperPut?

Another CallWriter first, these lists present potential covered call trades with the addition of a long protective put having an expiration that is 6 to 8 months out in time. But not just any put will do - these puts are extremely cheap and have very little time value. In fact, the cost of the put is usually only 1.5 to 2.5 times the current-month call premium. The purpose of buying the put is that the put provides a price guarantee - we will never sell the stock for less than the exercise price of the put. A SuperPut is simply a Protected Covered Call position!

The SuperPut structure - technically a "calendar collar" position - is designed to limit risk in the covered call position. In fact, our SuperPut lists do not present any potential trade in which the maximum possible loss exceeds 10%. And in many trades, the maximum possible loss will be in the 5-8% range of your money in the trade. It's nice to know that your loss is capped - and small - even if the stock suffers a catastrophic loss!

Your Free SuperPut

The last row of the sample list above (No. 15) shows you a live SuperPut candidate trade that now appears on our CW Global Select  (Dividends) list for the next expiration month. For example, if the current options expiration month is March, the above list will present April expiration month candidates.

DISCLAIMER: Remember that the candidate trades appearing on our lists are not trade recommendations or "picks," and each candidate appearing on our lists should be carefully analyzed prior to execution.

Interpreting the List

The first column contains Trade Links to online broker optionsXpress.com. CallWriter members with an optionsXpress.com options account can simply click the trade link and run the trade right from the list.

The Buy Stock columns include the stock name, stock symbol, the stock price. The Write Call Option columns present the call option's symbol, strike (exercise) price and the call premium at the time the list was generated.

The Buy Put Option columns present the symbol of the put option to be purchased, the put's strike price (the price at which we can sell the stock), the put premium (put cost) and the net debit (net amount of money in the trade), assuming that we were to run the trade at the exact numbers shown on the list. The long put provides a price guarantee for the stock; we can never get less than the put's strike price for the stock.

The Call Returns columns show the un-called percentage returns if the stock does not change price by expiration (flat return) and the return assigned on the call (return if called).

The Risk columns show the maximum risks in the SuperPut trade from a move in the stock price up or down. The Downside Risk is the maximum amount we can lose if the stock should collapse, assuming we repurchase the call (for a nominal price) and exercise the put. The Upside Risk is the maximum amount we can lose if the stock price rises. It assumes that 1) we allow ourselves to be assigned on the calls we sold (meaning we would have to sell the stock at the calls' strike price), and that 2) we never receive any value out of the long put and forfeit the entire amount paid for it. Note, however, simple trade modifications can either lessen the loss or pull a profit out of the trade. Still, isn't it nice to know that your maximum risk is fixed in advance?

The Indicators columns show the open interest in the call option (the number of contracts outstanding of that call), the stock's average daily volume and the stock's industry. We also show the Moving Average Directional Indicator (MADI), a proprietary CallWriter indicator that shows you where the stock price is in relation to its 20-day and 50-day moving averages.

Quick Research for Conservative Results

Before running a covered call or SuperPut trade, it is important to first do a bit of basic research. CallWriter makes it easy and fast. Simply click the stock name, stock symbol, call symbol or put symbol to pop open CallWriter's acclaimed Research Page. This amazing utility allows you to do thorough research on any stock, and we have aggregated the research you really need. Please note that the Research Page cannot be opened from this sample list.

Our Research Page lets you research any stock you choose, not just the ones on our Real Time Lists™. Simply enter the symbol for another stock into the field at the top of the Research Page and you will get a fresh data page (the same type of data page already open) for the new stock.

Fresher is Better

Whether it's apple pie or a burger and fries – or market information - we always want fresher. Because we know fresher is better. CallWriter's covered call lists update every few minutes, so you always have the freshest possible trade candidates. With CallWriter, you never waste your time looking at stale data . We at CallWriter select trades off the very same lists as our members, so we want them to be the best.