CANDIDATE HIGH BETA STOCKS FOR OCT COVERED CALLS

I like to look for high beta stocks for Covered Calls plays. This is because I believe in the maxim “Buy high, Sell higher” (Say what! Have I gone CRAZY?). I’ll be coming up with my reasons on this on my website, so stay tuned. For the month of October (October 19th expiration), I’ll be monitoring the following stocks for possible entries:
1. Priceline (PCLN) and Blue Nile (NILE) - Two nice retail stocks on the upside. Blue Nile looks like it needs a rest
2. Southern Peru Copper (PCU) - A poster boy for commodities. With the US Dollar tanking, commodities are on their way up
3. Diana Shipping (DSX) or Excel Maritime (EXM) - Diana has a nice Reverse H&S in motion, while Excel Maritime is one that can go up and down fast
4. VM Ware (VMW) - What can I say? An upgrade on EMC (it's parent company) saw the stock rocket up by over $4 today. Analysts says its overvalued. I say, who cares! Wait until it pulls back.
(Note: I had winning results last month on Blue Nile, VM Ware and Dryships. Dryships is in the same sector as Diana Shipping, and since it's ran all the way to $80, I wouldn't be touching that anytime soon).

These stocks have high At-the-Money (ATM) and Out-of-Money Call (OTM) options prices, which is suitable to protect our downside. They are also on a tear, indicating further upside. The fact that some of the stocks have high “short interest” (i.e. Investors betting the stock will go down), only serves to add fuel to fire. I’ll be informing you of the stocks I select for this month’s Covered Call operations in due time!

Chief Shook