What Is A Covered Call?
A covered call is a position that consists of shares of a stock and a call option on that underlying stock. When you execute a covered call, you sell the call option while owning the underlying stock. Covered calls give the right to purchase the underlying stock at a set price and a specific time. And to avail of this, the buyer of the call has to pay a premium to the seller. This premium is the primary reason many investors adopt this strategy. There are many stock advisory services that recommend a few of the best stocks to their members and subscribers.
At the time of maturity of the covered call, there are two possible situations:
- The price of the stock is less than the strike price
- The option expires and there is no further action
- The price of the stock is higher than the strike price
- The option is executed, and you automatically sell your shares at the strike price
Whatever be the situation, the seller of the call option has already received the premium upfront. Hence the buyer accepts this risk when buying the covered call. By using the stock signals, you can avoid hours of technical analysis to understand the market.
In order to take maximum benefit out of the call option, the best time to buy a covered call option is:
- When the stock price has risen to your target value
- When a huge jump in price is expected following a big company news
How To Pick The Best-Covered Call Stocks?
Every covered call trade revolves around three components: the underlying stock, the term, and the strike. In order to select the best-covered call stocks, all three must be considered before you make a decision. Based on your investment strategies, you have a few options to take into account to pick the best-covered call stocks:
- Since the performance of the stock will decide the return on investment, pick stocks that you will choose to make a part of your portfolio. A stock that has a declining price trend will make it difficult for you to make a profit
- Always take into account that the premium is worth the risk you are taking on the covered call trade.
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List of Best Stocks for Covered Calls in 2023
Using a covered call trade strategy during a bull market will underperform stocks but they will still realize profits. Below we have compiled a list of best stocks for covered call strategy which can yield good premiums/profits during 2023:
- ConocoPhillips (NYSE: COP)
- Oracle (NYSE: ORCL)
- Verizon Communication (NYSE: VZ)
- Pfizer Inc. (NYSE: PFZR)
- Devon Energy (NYSE: DVN)
- Advanced Micro Devices (NASDAQ: AMD)
- Nvidia (NASDAQ: NVDA)
- Ford Motor Company (NYSE: F)
- Acadia Healthcare Corporation (ACHC)
- PepsiCo Inc (PEP)
- Air Industries Group (AIRI)
- Blackstone (BX)
- Lowe (LOW)
- Johnsons and Johnsons
- Exxon Mobil
- Rio Tinto
- Morgan Stanley
ConocoPhillips (NYSE: COP)
ConocoPhillips engages in the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, natural gas liquids, and liquefied natural gas on a worldwide basis. Solar energy stocks have led this quarter’s stock market gains.
ConocoPhillips reported outstanding operational performance in the fourth quarter report for the year 2021. The company generated strong returns on and of capital for its shareholders and closed on two significant, highly-accretive acquisitions in the heart of the Permian Basin. The company generated $8 billion adjusted earnings and $2.27 earnings per share. Also, ConocoPhillips paid $2.4 billion in cash dividends to shareholders. The company reported a 14% Return on Capital Employed and generated a free cash flow of $10.4 billion
ConocoPhillips also forecast average production of about 1.8 million barrels of oil equivalent per day in 2022 and plans to invest $7.2 billion in capital expenditures. The company recently completed the purchase of Shell’s interest in the Permian for $9.5 billion in cash.
The ConocoPhillips share is currently trading at a price of $94.86. The company has a market valuation of $94.86. As per CNN money, analysts offer a 12-month price forecast for of maximum $128, a minimum of $77, and a median target price of $106.
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Oracle (NYSE: ORCL)
Oracle is a computer technology corporation best known for its software products and services like Java. Through the company’s four main business segments—cloud and license, hardware, and services—Oracle sells its cloud-engineering services and systems and database management systems. Semi conductor stocks are one of the best investment opportunities.
In the second quarter financial report, Oracle announced revenue of $10.4 billion, representing an increase of 6%. Within the revenue-generating segments of Oracle, Cloud services and license support revenues were up 6% and Cloud license and on-premise license revenues were up 13% and Non-GAAP earnings per share were reported at $1.21, an increase of 14%. These strong results are being driven by the 22% growth of the company’s infrastructure and applications cloud businesses
Oracle has a market capitalization of around $75.97. The share of the company is trading at a price of $75.97. As per CNN Money, analysts offer a 12-month price forecast of a maximum of $126, a minimum of $83, and a median target price of $105.
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Verizon Communication (NYSE: VZ)
Verizon communication is s one of the world’s leading providers of technology and communications services. It operates through two segments, consumer and business. Tech Stocks is one of the best investment option.
- Verizon Consumer Group – It provides consumer-focused wireless and wireline communications services and products.
- Verizon Business Group – The Business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long-distance voice services, and network access to deliver various Internet of Things (IoT) services and products.
The company reported a fourth-quarter earnings report where it delivered strong financial performance. The company reported a total of $34.1 billion in earnings, representing a decline of 1.8% year on year. Earnings per share were reported at $1.31, which increased by 8.3% year-on-year. During the quarter:
- 11.4 million wireless postpaid device activation
- 1.1 million wireless retail postpaid net addition
- 6.7 million wireless postpaid upgrades
- 47,000 wireless retail account net ads
The company’s 2022 outlook is positive and progressive. Verizon expects service and other revenues to increase by 1% -1.5% and total wireless revenue growth are expected to be between 9% to 10%.
Verizon has a market capitalization of over $225 billion. The share of the company is trading at a price of $53.67. As per CNN Money, analysts offer a 12-month price forecast for of maximum $71, a minimum of $52, and a median target price of $58.5.
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Pfizer Inc. (NYSE: PFZR)
Pfizer Inc. is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sales, and distribution of biopharmaceutical products. Its global portfolio includes medicines and vaccines. Get to know best vaccine stocks to invest in now.
The company recently published its fourth-quarter report for the year 2021 reporting strong financial performance. Total revenue was reported to be $23.8 billion, a 106% increase year on year. Adjusted earnings per share were reported at $1.08.
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Pfizer was ranked #2 amongst large biopharma companies, according to a patient view global survey, and is #4 on Fortune’s World’s most admired companies list. Also, the company achieved 1.4 billion patients with its vaccines and medicines, during the year 2021.
For the year 2022, the biopharma company forecasts record-high revenue, from $98 billion to $102 billion, and the targeted Earnings per share are $6.35 and $6.55. Moreover, a strong balance sheet & anticipated near-term incremental free cash flow is expected to allow Pfizer to continue growing dividend & pursue new business development.
Pfizer has a market capitalization of around $264 billion. The company’s share is trading at a price of $46.94. As per CNN Money, analysts offer a 12-month price forecast for of maximum $76, a minimum of $49, and a median target price of $57.
Devon Energy (NYSE: DVN)
Devon Energy is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. As per the CEO, these principles have positioned Devon to be a prominent and consistent builder of economic value through the cycle. Get to know the list of crypto mining companies that are leading the industry.
The company recently reported financial and operational results for the fourth quarter of 2021. Total earnings were reported at $4.3 billion and Net earnings totaled $1.4 billion. Earnings per share were reported to be $2.23. The company delivered strong liquidity of $2.3 billion in cash and an improved debt position. The company was able to reduce debt by $1.2 billion and the net debt to equity ratio stood at 0.8 times as of 31st Dec 2021. Devon Energy has a history of 29 consecutive years of dividend payment. For this quarter, the company announced a $1 dividend per share. There are multiple paid courses and technical analysis books available which provide in-depth knowledge about Technical Analysis.
The company is well-positioned for strong growth for 2022. Total production is expected between 570-600 MBOED and Devon Energy is well-positioned for an attractive free cash flow yield.
Devon Energy has a market capitalization of $39.55 billion. The share of the company is trading at a price of $59.55. As per CNN Money, analysts offer a 12-month price forecast for of maximum $70, a minimum of $60, and a median target price of $59.54.
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Advanced Micro Devices (NASDAQ: AMD)
Advanced Micro Devices, Inc. is a global semiconductor company. The Company’s segments include:
- Computing and Graphics segment- It includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services
- Enterprise, Embedded, and Semi-Custom segment – This includes server and embedded processors, semi-custom SoC products, development services, and technology for game consoles.
The company recently published its annual report for the year 2021, where it reported a record revenue of $16.4 billion an increase of 68% from 2020, and a gross margin of 48% was reported. In addition to it, the company reported a significant growth in profitability, net income was reported at $3.2 billion and earnings per share were reported at $2.57. Moreover, operating cash flow was reported at $3.5 billion a 229% year-on-year increase. AMD reported a record free cash flow of $3.2 billion, an increase of 314% was recorded.
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The outlook for the fiscal year 2022 is promising. AMD expects a 31% growth in revenue and gross margin to be 51%.
Advanced Micro Devices has a market capitalization of $200 billion. The share of the company is trading at a price of $123. As per CNN Money, analysts offer a 12-month price forecast for of maximum $246, a minimum of $100, and a median target price of $156.
Nvidia (NASDAQ: NVDA)
NVIDIA is a graphics card manufacturer and graphics processing unit (GPU) designer. The company produces a range of graphics and general-purpose GPU (GPGPU) products for supercomputing and AI acceleration, as well as rack-mounted AI acceleration units and servers for GPGPU. NVIDIA makes some of the most recognized consumer graphics cards under GeForce branding. With more than 200 million gamers, NVIDIA GeForce is its largest platform for gamers.
NVIDIA recently published its annual report for the year 2022. The company reported revenue of $16.7 billion, an increase of 53% from last year.Net Income of $4.3 billion, and earnings per share was reported at $6.9, a 53% increase from last year. The year was a breakout year for NVIDIA’s computing platforms. The company’s pioneering work in accelerated computing has led to gaming becoming the world’s most popular entertainment, to supercomputing being democratized for all researchers, and to AI emerging as the most important force in technology.
For the next quarter, the company expects revenue to be approximately $5.3 billion and gross margins to range between 63.8% to 66%.
NVIDIA has a market capitalization of over $607 billion. The shares of the company are trading at a price of $243.85. As per CNN Money, analysts offer a 12-month price forecast for of maximum $400, a minimum of $210, and a median target price of $350.
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Ford Motor Company (NYSE: F)
Ford Motor Company is an automobile company that designs, manufactures, markets, and services a full line of Ford trucks, utility vehicles, cars as well as Lincoln luxury vehicles. The Company operates in three segments:
- Automotive – This segment is engaged in developing, manufacturing, distributing, and servicing the vehicles, parts, and accessories of Ford and Lincoln vehicles
- Mobility – This segment primarily includes the development of Ford’s autonomous vehicles and related businesses
- Ford Credit – This segment is comprised of Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities.
The company recently published its fourth-quarter results for the year 2021. Revenue was reported to be $37.7 billion, an increase of 5% majorly due to y higher net pricing and mix improvement. Earning per share was recorded at $0.26. There has been a lot of focus on the long-term investment stocks.
For the coming year, the company has plans to unlock new growth opportunities. The company announced plans for 240GWh global battery capacity by end of the decade and an $11.4B investment in BlueOval City and BlueOval SK Battery Park to build the next-generation electric F-Series pickups and advanced batteries. Also, Ford Motors is on the path to double annual BEV capacity to 600K by 2023 and aims to be number 1 BEV in the U.S.
Ford Motors has a market capitalization of over $70 billion. The company shares are trading at a price of $17.56. As per CNN Money, analysts offer a 12-month price forecast for of maximum $30, a minimum of $13, and a median target price of $22.5.
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Walmart Inc. engages in the operation of retail, wholesale, and other units worldwide. The company operates through three segments:
- Walmart U.S.
- Walmart International
- Sam’s Club.
It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores; membership-only warehouse clubs; e-commerce websites, such as walmart.com, walmart.com.mx, walmart.ca, flipkart.com, and samsclub.com; and mobile commerce applications
Walmart has thousands of stores in the U.S. and around the globe. The company is creating a seamless experience for customers to shop anytime and anywhere online and in stores. Walmart operates approximately 10,500 stores and clubs under 46 banners in 24 countries and eCommerce websites.
In the recent quarterly report, Walmart Inc. reported:
- Total Revenue of $ 141.6 billion, an increase of 2. 4% from the previous year’s same period
- Operating income was $ 5.3 billion, a 23 % decline from the previous year’s same period
- Total inventories were at $ 61.2 billion, an increase of 32 % from the same period last year
- Return on Investment was reported at 13.9 %
- Return on Assets was reported at 5.5 %
Walmart has a market capitalization of over $ 333.6 billion. The share of the company is currently trading at a price of $ 121.6. Walmart’s stock has been highly volatile in the past two years. During the current year, after peaking at $ 157.41, the stock suffered a huge drop. In 2022, the stock has declined by approx. 16 %.
As per CNN Analysts, 12-month price forecasts for Walmart Inc. has a maximum price target of $ 180 and a minimum price target of $ 131, and a median target of $ 157.50.
Acadia Healthcare Corporation (ACHC)
Acadia is a leading provider of behavioral healthcare services across the United States. It is the largest stand-alone behavioral health company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers, and outpatient clinics.
With a team of more than 22,500 people, ACHC serves approximately 70,000 patients on a daily basis. As of March 31, 2022, Acadia operated a network of 238 behavioral healthcare facilities with approximately 10,600 beds in 40 states and Puerto Rico.
Acadia Healthcare Company, Inc announced financial results for the first quarter ended March 31, 2022:
- Revenue totaled $ 616.7 million, an increase of 11.9 % as compared to the first quarter of 2021
- Net income attributable to Acadia totaled $ 60.8 million
- Earnings per share were $ 0.67 per diluted share
- Adjusted EBITDA totaled $ 135.5 million
- Cash flows from operating activities totaled $ 76.8 million
ACHC reported financial guidance for 2022 for revenue to be around $ 2.6 billion
Acadia Healthcare Corporation has a market capitalization of over $ 6.2 billion. The shares of ACHC are trading at a price of $ 68.23. The stock has been on a bullish streak for the past two years. By 2022, the stock has appreciated by 12.4 % to date.
As per CNN Analysts, 12-month price forecasts for ACHA have a maximum price target of $ 95 and a minimum price target of $ 69, and a median target of $ 84.
PepsiCo Inc (PEP)
PepsiCo is in the food and beverage business. Its products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world.
PepsiCo owns a wide portfolio of food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana, and SodaStream. PepsiCo’s product portfolio includes 23 brands that generate more than $1 billion each in estimated annual retail sales.
PepsiCo Reports First-Quarter 2022 for the period ending 31st March 2022:
- Net Revenue was reported at $ 16.2 billion, an increase of 9.3 % from the same period last year
- Operating profit was $ 5.3 billion, a 1.27-fold increase from the same period last year
- Net Income was $ 4.3 billion, a 1.5-fold increase from the same period last year
- Earnings per share were $ 3.06, as compared to $ 1.24 during the same period last year
PepsiCo has a market capitalization of around $ 224.7 billion. The shares f the company is currently trading at a price of $ 162.52. The stock has been on a bullish streak for the past two years. In 2021, the stock appreciated by 17.2 %. In 2022, to date, the stock has declined by 6.5 %.
As per CNN Analysts, 12-month price forecasts for PEP have a maximum price target of $ 200 and a minimum price target of $ 160, and a median target of $ 187.
Air Industries Group (AIRI)
Air Industries Group is a manufacturer of precision machined components, mechanical assemblies, precision sheet metal assemblies, and electronic enclosures for the aerospace and defense industry. It operates through two segments:
- Complex Machining – It manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts, flight controls, throttle quadrants, and other components
- Turbine Engine Components- This segment makes components and provides services for jet engines and ground-power turbines
Air Industries recently announced its financial results for the Twelve months ended December 31, 2021.
- Net sales for the year were $58.9 million, an increase of 17.7%, compared to 2020
- gross profit for the year ended was $10.3 million, an increase of $3.8 million compared to $6.5 million in 2020
- Operating income for the year was $2.5 million as compared to an operating loss of $1.4 million in 2020.
- Net Income for the year ended December 31, 2021, was $1.6 million
Air Industries has a market capitalization of over $ 22.7 billion. The share of the company is currently trading at a price of $ 0.704. The stock of the company continued to rise and peaked at $ 2 on Feb’21. After that, the stock started declining. During 2021, the stock declined by 26 %, The downward trend continued during 2022 and the stock has depreciated by approx. 23 % to date.
As per CNN Analysts, 12-month price forecasts for AIRI, have a maximum price target of $ 1.8 and a minimum price target of $ 1.8, and a median target of $ 1.8.
Blackstone is the world’s largest alternative asset manager. It is a leading global investment business investing capital on behalf of pension funds, large institutions, and individuals. The company’s $915 billion in assets under management is invested across the alternative asset classes in private equity, real estate, credit, and hedge funds as well as in infrastructure, life sciences, insurance, and growth equity. Blackstone helps grow hundreds of companies and it also supports local economies.
As of 31st March 2022, the total money invested in asset classes is:
- Real Estate – $ 298 billion
- Private Equity – $ 268 billion
- Hedge Fund Solutions – $ 83 billion
- Credit and Insurance – $ 266 billion
Blackstone reported its first-quarter 2022 results. This quarter represented one of the best in Blackstone’s 36-year history.
- Total Revenue was reported to be $ 5.13 billion, a slight decline of 3 % from the previous year’s same period
- Net Income was reported to be $ 2.5 billion, a decline of 26 % from the previous year’s same period
Blackstone has a market capitalization of around $ 128.7 billion. The share of the company is trading at a price of $ 107.63. The share followed a bullish pattern for the majority of 2020 and the whole of 2021. In 2021, the share price almost doubled, from $ 64.81 to $ 129.39. In 2022, the sharing pattern reversed and it started to decline. To date, the share has declined by 17 % in 2022.
As per CNN Analysts, 12-month price forecasts for BX, have a maximum price target of $ 180 and a minimum price target of $ 122, and a median target of $ 143.5.
Lowe’s Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, lighting, and electrical
Lowe’s reported its first-quarter earnings results for the year 2022:
- Total sales were $23.7 billion compared to $24.4 billion in the first quarter of 2021
- Net earnings of $2.3 billion
- Diluted earnings per share (EPS) of $3.51, compared to diluted EPS of $3.21 in the first quarter of 2021
The full Year 2022 Outlook includes:
- Total sales of $97 billion to $99 billion,
- Diluted earnings per share of $13.10 to $13.60
- Capital expenditures of approximately $2 billion
Lowe has a market capitalization of $ 119.1 billion. The share of the company is currently trading at $ 186.33. The stock of LOW was on an upward streak for the majority of 2020 and the whole of 2021. In 2021, the stock went from $ 160.51 to $ 258.43, representing an increase of 61 %. The year 2022 brought a trend reversal in the performance of LOW stock. The stock picked up a declining trend and declined by approx. 28 % to date.
As per CNN Analysts, 12-month price forecasts for LOW have a maximum price target of $ 240 and a minimum price target of $ 300, and a median target of $ 190.
Johnsons and Johnsons
Johnsons and Johnsons is an American pharmaceutical company. It is engaged in the business of manufacturing health products and has around 130,000 employees working in various parts of the globe across 60 countries and selling products in 130 countries.
Johnson & Johnson’s biggest strength is its diversified business model. It operates through the following segments:
- Med Tech
- Consumer Health
It comprises some 250 subsidiaries, which means that the business is extremely well diversified. Its diversification helps it to withstand economic cycles more effectively. Meanwhile, J&J has one of the largest research and development (R&D) budgets among pharma companies.
Johnson & Johnson recently announced results for second-quarter 2022:
- Sales were reported at $ 24 billion
- Net Earnings were reported at $ 4.8 billion
- Earnings per share were reported at $ 1.8
JNJ has a market cap of $ 435 billion. Its share is trading at a price of $ 164.97. The share of the pharma company is on a bullish streak for the past two years. From $ 157.38, at the start of 2021, the stock rose up to $ 179.44 and finally closed at $ 164.52. Overall, the stock appreciated by 4.5 % during the year. In 2022, the stock continued its bullish streak while exhibiting volatility. The stock rose up to $ 182.29 during the year and last closed at $ 164.97. To date, the stock has maintained its price level in 2022.
CNN Money Analysts offer a 12-month forecast for JNJ with a maximum price of $ 215 and a minimum of $ 165.
Exxon Mobil Corp. engages in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through the following segments:
- Upstream – The Upstream segment produces crude oil and natural gas
- Downstream – The Downstream segment manufactures and trades petroleum products.
- Chemical – The Chemical segment offers petrochemicals.
Exxon Mobil recently shares its quarterly earnings report for the year 2022:
- Earnings were reported at $ 17.9 billion
- Cash flow from operating activities was reported at $ 20 billion
- Earnings per share were reported at $ 4.21
Earnings and cash flow benefited from increased production, higher realizations, and tight cost control. The company also reported Increased Permian oil and gas production by approximately 130,000 oil-equivalent barrels per day and refining throughput by 180,000 barrels per day.
Exxon Mobil has a market cap of $ 382.6. Its share is trading at $ 92.44. The share of the company is on a rising streak for the past two years. In 2021, the stock went from $ 41.22 to $ 61.19, representing a 48.45 % appreciation during the year.
In 2022, the stock went from $ 61.19 to $ 92, representing a 50 % appreciation in stock price to date.
CNN Money Analysts offer a 12-month forecast for XOM with a maximum price of $ 134 and a minimum of $ 89.
Rio Tinto Plc engages in the exploration, mining, and processing of mineral resources. It operates through the following business segments:
- Iron Ore – The Iron Ore segment supplies the global seaborne iron ore trade.
- Aluminium – The Aluminium segment produces bauxite, alumina, and primary aluminum
- Copper and Diamonds – The Copper and Diamonds segment offers gold, silver, molybdenum, and other by-products
- Energy and Minerals – Energy and Minerals include businesses with products such as uranium, borates, salt, and titanium dioxide feedstock together with coal operations.
- Other Operations – The Other Operations segment covers the t curtailed Gove alumina refinery and Rio Tinto Marine operations.
Rio Tinto recently delivered its half-yearly results for 2022:
- Underlying EBITDA was reported at $ 15.6 billion,
- Free cash flow of $ 7.1 billion
- Underlying earnings of $ 8.6 billion
The company is paying its second highest ever interim dividend of $ 4.3 billion which represents a 50 % payout.
Rio Tinto has a market cap of $ 86.33 billion. Its share is currently trading at $ 55.11. The share has been extremely volatile in the past two years.
In 2022, the stock started at $ 75.22. During the year the stock went as high as $ 93.17 and as low as $ 60.62. Finally, the stock closed at $ 66.94. Overall, the stock declined by 11 % during the year
In 2022, the stock continued its volatile behavior. The stock went as high as $ 82.68 and last closed at the lows of $ 55. To date, the stock has declined by 33 %.
CNN Money Analysts offer a 12-month forecast for RIO with a maximum price of $ 90 and a minimum of $ 64.
Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following segments:
- Automotive – The Automotive segment develops, manufactures, markets, and services Ford and Lincoln vehicles, service parts, and accessories
- Mobility – The Mobility segment includes the development of autonomous vehicles, equity ownership in Argo AI which is a developer of autonomous driving systems, and related businesses
- Ford Credit – The Ford Credit segment consists of vehicle-related financing and leasing activities.
- Corporate Other – The Corporate Other segment covers corporate governance expenses, interest income, gains and losses from cash, cash equivalents, and marketable securities, and losses associated with intercompany lending
- Interest on Debt – The Interest on Debt segment is composed of interest expense on company debt excluding Ford Credit.
- Special Items – The Special Items segment deals with pension and employee benefit remeasurement gains and losses, gains and losses on investments in equity securities, significant personnel expenses, and other items that are not considered to be indicative of earnings from ongoing operating activities
Ford recently reported its second-quarter results for the year 2022:
- Revenue was reported at $ 40.2 billion
- Net Income was reported at $ 667 million
- Earnings per share were reported at $ 0.16
Ford has a market cap of $ 53.5 billion. Its share is trading at $ 13.09.
The share of the company started in the year 2022 with a bullish streak. The bullish pattern continued throughout the year. From $ 8.79, the stock closed the year at $ 20.77, representing a 136 % increase during the year.
The year 2022 started with the same bullish streak. But the stock reversed its course after hitting the peak of $ 25.19. The stock last closed at $ 13.09, representing a 48 % decline to date.
CNN Money Analysts offer a 12-month forecast for Ford with a maximum price of $ 28 and a minimum of $ 10.
Morgan Stanley operates as a global financial services company. The firm provides investment banking products and services to its clients and customers including corporations, governments, financial institutions, and individuals.
It operates through the following segments:
- Institutional Securities – The Institutional Services segment provides financial advisory, capital-raising services, and related financing services on behalf of institutional investors.
- Wealth Management – The Wealth Management segment offers brokerage and investment advisory services covering various types of investments, including equities, options, futures, foreign currencies, precious metals, fixed-income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs.
- Investment Management – The Investment Management segment provides equity, fixed income, alternative investments, real estate, and merchant banking strategies.
Morgan Stanley reported second-quarter results the year 2022:
- Net Revenues were reported at $ 13.1 Billion
- Net Income was reported at $ 2.5 billion
- Earnings per share were reported at $ 1.39
Morgan Stanley has a market cap of $ 153.7 billion. Its share is trading at a price of $ 87.19.
The stock of Morgan Stanley started the year 2021 with a bullish streak. From a price of $ 66.53, the stock went as high as $ 105.45 and closed the year at $ 98.16. Overall, the stock appreciated by 47.5 % during the year.
In 2022, the stock changes its course and picked up a bearish pattern. The stock dropped to the lows of $ 72.9 and last closed at $ 87.19. To date, the stock has declined by 11 %.
CNN Money Analysts offer a 12-month forecast for Morgan Stanley with a maximum price of $ 108 and a minimum of $ 80
The covered call trading strategy is attractive but it comes with its risks. The above-mentioned companies have been selected based on the company’s growth and plans. The strike price for the trade can be set using the expected future growth and the forecasted growth price. And also, the current on-goings and financial performance of the company have been considered to assure that the company is worth taking the risk for covered call strategy.
The above list of companies is the best stocks for covered calls for the year 2022.
Disclaimer: None of the information published in this article should be construed as investment advice. Article is based on author’s independent research, we strongly advise our readers to always do their due diligence before investing.
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