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Pick of the day

3794 Views 0 Replies 1 Participant Last post by  ethos1
this is my pick of the day

Buying 1000 shares of Ford at $4.20 then selling 10 contracts covered call $2.50 Jan 2011 for $2.80

Upside is that I get called away real quick and profit $1.10/$2.50 = 44%
Downside is the stock can drop to $1.40 for a breakeven

Is this doable, are my calculations correct & does anyone have their own picks or comments on this?
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