I recently focused on SINA Corp, a Chinese internet company, as a prime example of A Seldom Mentioned Benefit of Covered Calls
That article was just 12 days ago. I first identified SINA as a breakout stock, with a good seasonal pattern (a track record of rising in the weeks ahead), in the May 13th, 2013 newsletter, when SINA was at 59.14. SINA did indeed rise. The July 22nd article focused on covered calls during that period, and how traders were positioned for the sharp jump SINA took on July 18th.
SINA closed last night at 73.68, a 24.6% gain from the May 13th article, and a 13.2% jump from 11 days ago.
In today's full Seasonal Forecaster newsletter, I cover what adjustment is appropriate for the SINA trade, and what additional potential this trade may hold. After adjustment, this trade will be up 26% from the start of the covered call series 81 days ago. This is an annualized rate of 120%.
Still think covered calls aren't for active, short-term traders?
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in www.markettamer.com/seasonal-forecaster
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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