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30 High Yielding Option Write Ideas for November's Option Expiration Friday

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In a previous OptionMaestro.com post, I outlined 30 stocks which I wouldn't mind going long at these levels. I wrote about getting long the stocks by using the buy-write option strategy. This is an updated post to that one, adjusting the strikes and prices accordingly for options expiration today. It is very important to write the shares out as early as possible as volatility rushes into the market in the morning, and not wait for it to start decreasing rapidly in the afternoon. It's not too late to get premium out of many of these stocks, and writing them for just a day decreases risk greatly. I will look to be purchasing some of the stocks mentioned below during pre-market or near market open to write out within an hour of the opening bell. As I've stated, I don't mind holding any of these stocks long which is why I'll be using this strategy today. If I get called out I won't mind because I'll still make money. Below is the list of stocks, the potential return if exercised, and downside protection if they do not get exercised. To learn more about the buy/write option strategy, risks, pricing, calculations, other strategies, and options in general, click here.

Note that higher beta securities return higher percentages due to their levels of implied volatility, and because they are riskier.

To understand the table, I will give a detailed example of Option Maestro favorite Suntech Power (STP) below.

Sell the at-the-money STP November 16 strike call option. The premium received from the call option would give a downside protection of 1.56%. If the stock closes above 16 (it will get assigned) today the total return from this position would be 1.63% in just 6.5 trading hours.

Vested Interest: 
Disclosure: Long AAPL December 200 Calls, AXP, BAC, GOOG January LEAP 300 Calls, LVS, PALM, STP, V November 60 Calls, Short AXP November 38 & 41 Calls, GOOG November 580 Calls, V November 80 Calls
Read the full article: http://optionmaestro.blogspot.com/2009/11/30-high-yielding-o...
Tickers: AA AAPL AMZN AONE AXP BAC BAX BGU BGZ BIDU BRCD C CAT CSCO DIA DNDN DOW F FAS FAZ FSLR GG GLD GOOG GS IWM JPM LVS MA PALM POT QQQQ RIMM RMBS SDS SKF SPY SSO STP TLT TNA TXT TZA UYG V WLT XLF XLK
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