Is it a good idea to do a covered call on stocks like LUV and CVC?

Question

I think LUV and CVC are very flat, so I am trying to make some profit since I own some shares on both.

Answer 1

no we are entering a bull leg selling a covered call is what you do in dead market we just left stay long imo

Answer 2

If your stocks aren't participating in this incredible rally in the market to all-time historical highs, there's no reason to justify pennies on a dead-end strategy when you could be making real money.

The covered call strategy was a great idea implemented by brokerages to increase commissions. Makes them rich, but leaves you with chump change.

In a rip-roaring Bull Market, when you've got a mover that participates in the rally, the last thing you want to do is to give up the upside by writing a call. And if the market reverses, all you have is a false "protection" of one or two points.

It may seem like an exotic thing to do from an ego standpoint, but has only confined you to mediocrity, and used up your resources, sorta like running in place without getting anywhere. And the amount of time you put into those optionomics, the effort/return ratio is feeble, unless you're dealing with millions.

Answer 3

cvc has a p/e of -231.16 (not good)Dec. call at $27.50 is $10.10 you sould do this ! 1contract =$1000.remember you only get called out 20% of the time on covered calls.

Answer 4

It's almost X-mas time, LUV might not be a bad idea. Not sure about CVC.