35 Weekend Stock Option Write Ideas

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As recently posted in my blog, I've been expecting a pull back. However the market has made a fool of me lately. The S&P 500 passed through the 1010 mark today on rather bad news, so maybe this rally is for real and will continue. However, I'm still cautious about purchasing stocks (unless I write a call option against it immediately), but for the calls written today and those which I'll write on strength Friday are certainly for higher strike prices (a more bullish approach). The majority of the strike prices indicated in this post are for the next higher strike option. With only 1 week until expiration I have outlined some "weekend write ideas", which is for selling the call against the stock for the August options expiration. To learn more about this strategy, and stock options in general click here. I will use the 25 largest stocks (by market cap) in the S&P 500 for my analysis, I will then write about 10 higher beta stocks which are much more volatile and you'll be able to compare premiums.

To understand the table, I will give a detailed example of Google (GOOG) below.

Sell the Google August 470 strike call option. The return if the stock is assigned at expiration is 2.25%, and if the stock is not assigned the return from writing this is 0.58% (or lowers the position by 0.58%). Based on the current options market, the contract will lose $56.80 (a gain of 25.2% on the premium) over the weekend as the stock sits inactive.

All data as of market close Thursday August 13, 2009....

Vested Interest:

I/(Author) own shares in the following stocks listed in this article (CAT,BAC,C,LVS,IVN,PALM,GS)

Read the full article: http://feeds2.feedburner.com/optionmaestro

Tickers: AAPL AIG BAC BCS C CSCO CVX DIA GE GNW GOOG GS HPQ IBM INTC IVN JNJ JPM KO LVS MGM MSFT ORCL PALM PEP PFE PG PM QCOM QQQQ SPY T TCK VZ WFC WMT WYNN XOM

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