Covered calls are a great strategy to add to any portfolio, and can offer enhanced yield from stock holdings, in some case, that can be a significant increase. To trade a covered call we need to own (or buy) 100 shares of a stock and then sell a call option against that stock position. More News from Barchart The goal is to generate income from the stock holding in addition to any dividends. The premium received from selling the call also covers a small decline in the stock price. However, the trade of ...

Group 1 - Energy provider NXT tested its 50-day moving average and pivoted higher, clearing key resistance levels at $90.48 and $93, indicating bullish momentum [1] - Short interest is modest at 3.5% of the total available float, suggesting potential for further upward movement as shorts cover their positions [1] - The put/call open interest ratio (SOIR) of 2.17 ranks in the 94th percentile, indicating a significant level of pessimism that could unwind and propel the stock higher [1] Group 2 - There is a heavy buildup of put open interest at the 90 strike, which may provide options-related support for the stock [1] - A recommended call option has a leverage ratio of 4.5, indicating that it will double on a 23.5% rise in the underlying equity [1] - Subscribers to Schaeffer's Weekend Trader received detailed options trade recommendations, highlighting the potential for significant market movements [2]

Options Activity - The Nov. 14 $3 call option for Tilray (TLRY) was notably active, with a volume of 148,312, representing nearly 10% of its open interest [2] - The call options outpaced put options with a ratio of 754 to 434, indicating a bullish sentiment [3] - The $3 call's Vol/OI ratio was 3.64, suggesting unusual activity, with 99% of trades being for 10 contracts or more [1][2] Long Strangle Strategy - A long strangle strategy was proposed involving the Nov. 14 $3 call and a $1.50 put, with a net debit of $0.35, which is 23.1% of the share price [8] - The upper breakeven price for this strategy is $3.35, while the lower breakeven price is $1.15 [8] - To profit, the stock must rise by 121.3% or fall by 24.04% from the current share price [9] Palantir Analysis - Palantir (PLTR) has shown strong bullish indicators with numerous call and put options having Vol/OI ratios over 1.0 [11] - The net debit for a long strangle on Palantir is $4.13, which is 2.3% of its closing price of $178.12 [12] - The expected move for Palantir is 7.82%, indicating a need for significant price movement to achieve profitability [12] Amer Sports Insights - Amer Sports has seen a decline of 16% in the past month, raising questions about the sustainability of its gains since its IPO [15] - The Nov. 21 $40 call option for Amer had a Vol/OI ratio of 8.74, indicating unusual activity [17] - The expected move for Amer is 14.05%, with a recommended long $40 call and long $35 put strategy [19]

Group 1 - Rocket Lab Corp (NASDAQ:RKLB) stock experienced a pullback of over 20% from its record close of $48.60 on July 18 to a low of $38.26, which aligns with significant put support and the 50-day moving average [2] - Short interest remains at 12% of the available float, indicating potential covering opportunities for shorts, which could provide additional support for RKLB [1] - Implied volatility (IV) is currently lower than 86% of readings from the past year, suggesting a favorable environment for options trading [1] Group 2 - The recommended call option for RKLB has a leverage ratio of 4.1, indicating that it will double with a 26% rise in the underlying security [1] - The technical setup suggests that now is an opportune time to buy on the dip, supported by the 50-day moving average [2] - Subscribers to Schaeffer's Weekend Trader options recommendation service received detailed trade recommendations for RKLB, highlighting the stock's bullish signals [3]

Group 1 - Kroger Co has reclaimed its March highs and is up over 10% year-to-date, finding strong support at its 50-day moving average during recent volatility [2] - The large call open interest at the 65 strike is set to expire after April, which may allow the stock price to move higher in the coming months [2] - The stock's gamma-weighted Schaeffer's open interest ratio (SOIR) is above 1.0, historically indicating price bottoms [3] Group 2 - There is potential for upgrades as nine out of twenty analysts have a "hold" or worse rating on Kroger [4] - Short interest is currently 322% higher than levels in November 2024, representing 5.8% of the stock's available float, indicating a significant short position [4] - The recommended call option has a leverage ratio of 7.1, which could double with a 13.6% rise in the underlying shares [4]