| Which stock would I buy for Writing Covered Calls - D vs SO | |||||
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| DISCLAIMER: This stock comparison is 100% for entertainment. I'm not recommending these stocks as a purchase. The research jump links in this blog post are ones that I use to start my stock investing research. Always do your own due diligence and never risk more money then you are willing to lose. Think of it like this blog post as seeing the world thru my eyes. | |||||
| COVERED CALL SHOWDOWN! - WHICH STOCK WOULD I PURCHASE TO WRITE A COVERED CALL | |||||
| Dominion Energy, Inc. | |||||
 | D | vs | SO |  | |
| The Southern Company | |||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| This weeks 'Stock Showdown' is with Dominion Energy(D) and Southern Company(S), two companies that are large power suppliers and staples in most all utility stock ETF's and Mutual Funds. D and SO pay very healthy dividends and looking at the charts over the past 5 years it's easy to see that these company's never really fall off the table in bad times and never really shoot off the charts in good ... perfect Selling Premium candidates ... lets see which one is better for Covered Calls this month | |||||
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| NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW | |||||
| D | SO | ||||
| $85.17 | $63.89 | ||||
| Dominion Energy, Inc. | The Southern Company | ||||
| Just in case you didn't know ... here's some basic company information about what they do. | |||||
| Dominion Energy, Inc. produces and transports energy. The company's Dominion Energy Virginia segment engages in the regulated electric generation, transmission, and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. Its Gas Transmission & Storage segment operates interstate natural gas transmission pipelines and underground storage systems, as well as engages in nonregulated retail natural gas marketing, and development of renewable natural gas and LNG infrastructure. The company's Gas Distribution segment engages in the regulated natural gas gathering ... | The Southern Company, through its subsidiaries, engages in the generation, transmission, and distribution of electricity. It operates in four segments: Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services, and Gas Marketing Services. The company also constructs, acquires, owns, and manages power generation assets, including renewable energy facilities and sells electricity in the wholesale market; and distributes natural gas in Illinois, Georgia, Virginia, and Tennessee, as well as provides gas marketing services, wholesale gas services, and gas pipeline investments operations. It owns and/or operates 30 hydroelectric generating stations, 24 fossil fuel generating stations, 3 nuclear generating stations ... | ||||
| Yahoo Summary-D | Yahoo Summary-SO | ||||
| #1 - The Golden Rules of Covered Call Writing! | |||||
| The Golden Rules of Covered Call Writing are subjective ... the basic idea is to avoid as much risk as possible when determining a new stock purchase for a Covered Call Write ... we can not avoid risk entirely but using certain rules or guidelines will help use reduce that risk during the timeframe we use the stock for selling premium. I've included the most popular rules or guidelines below which include: avoid a company's earnings report, is the company apart of the S&P 500 or Dow Jones?. Does the company have a dividend? Does the company have same store sales reports? Do you want to own the stock? > This list isn't the end all be all list but a starter list for your research and lowering your risk ... but again, we can not avoid risk . | |||||
| Dominion Energy, Inc. | The Southern Company | ||||
| S&P 500? | OPTIONS? | DIVIDEND? | S&P 500? | OPTIONS? | DIVIDEND? |
 |  | | | | |
| Confirm | Option Chain-D | Verify-D | Confirm | Option Chain-SO | Verify-SO |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Both of these companies have strong sub grades for the Golden Rules of CC writing ... D doesn't have weekly options which gives SO a clear advantage for those short term premium sellers ... both have a good dividend and meets my minimum. | |||||
| #2 - What story is the chart telling us? | |||||
| When buying stocks to Write Covered Calls the prime objective is for the stock to trade sideways to higher ... selling premium traders will purchase a stock and sell the Out of the Money strike to collect both the premium and the stock appreciation. I always like to look at a chart and ask the question "what story is this chart telling me?" ... if its trending higher, this is good. If its trending lower, well, I really need to do my research if I'm going to invest in a company that its stock is trending lower. | |||||
| See Support-D | See Support-SO | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| It's very clear that even in the worst year in recent times ... Wall Street keeps these 2 companies stock price valued with a decent sideways trade that is favorable for us selling premium traders ... selling the nice and easy 0.30 Delta OTM strikes picking up little Krums along the way ... and recently with vaccine talk ... Wall Street has moved back into them, moving these stocks higher. > Do notice that D has found a nice bit of support off that blue line on the chart | |||||
| #3 - What are "THEY" saying? | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| Dominion Energy, Inc. | The Southern Company | ||||
| Zacks | Yahoo Prem | AmBull | Zacks | Yahoo Prem | AmBull |
| HOLD | OVERVALUED | STAY LONG | HOLD | OVERVALUED | STAY LONG |
| Corfirm Rating - D | Yahoo Summary-D | Trending? -D | Corfirm Rating - SO | Yahoo Summary-SO | Trending? -SO |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Wow ... its rare when both stocks have the same exact sub grades across the 3 that I follow ... I like how the charts indicate that we should Stay Long in the stocks which tells me Wall Street is more buying then selling | |||||
| #4 - SHOW ME THE MONEY! | |||||
| Another great visual when quickly trying to determine if this/these are companies we want to own ... remember, we have to own these companies and if the picture isn't telling us a clear picture of a companies prospects then I have to make sure I really do my homework. | |||||
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| Yahoo Summary-D | Yahoo Summary-SO | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Instead of the Financials ... I wanted to see what Wall Street thinks and as you can see, the Upgrades have come for D and SO picking up 1 with a couple favorable Maintains ... all the reason more to consider these great S&P type companies as Wall Street likes them enough to Upgrade them. | |||||
| #5 - What kind of Covered Call profits can we make? | |||||
| Giving someone the right but not the obligation to take your shares can be very profitable if done correctly ... typically most Covered Call writers will try to make 3% Cash on Cash profit in a 30 day period. Mastering this skill of selling premium can increase your annual returns vs a buy and hold investment strategy. Below is a (1) deviation Out of the Money Covered Call that one might do if they sell premium. | |||||
| Looking at a 30 day window using (3) deviationS Out of the Money | |||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | POSTED > | 11/13/2020 | |||
D | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $85.17 | $85.00 | $2.15 | 2.32% | 12/18/2020 | |
| $85.17 | $87.50 | $1.20 | 4.14% | 12/18/2020 | |
| $85.17 | $90.00 | $0.45 | 6.20% | 12/18/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/D/options?p=D | ||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | |||||
SO | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $63.89 | $65.00 | $1.25 | 3.69% | 12/18/2020 | |
| $63.89 | $67.50 | $0.41 | 6.29% | 12/18/2020 | |
| $63.89 | $70.00 | $0.11 | 9.74% | 12/18/2020 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/SO/options?p=SO | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Easy little 30 day Covered Calls will produce some very respectful returns using these steady eddie stocks ... take your pick and you'll probably be alright | |||||
| #7 - "HURRY HURRY, READ ALL ABOUT IT!" | |||||
| The internet has so many resources for good information on companies ... whether its news, events or just some blogger with a great perspective on a company's prospects ... I love just glancing at the news feeds to get a feel for what's going on with a company I'm researching ... below are some helpful jump links I use. | |||||
| Seeking Alpha | DivChannel | Seeking Alpha | DivChannel | ||
| Alpha Articles Search-D | Verify-D | Alpha Articles Search-SO | Verify-SO | ||
| MY WINNER IS!!! | |||||
 | D | vs | SO | | |
| SCORE | SCORE | ||||
| 4 | 4 | ||||
| Seeing the World Thru my Eyes - the Straight Talk Recap! | |||||
| WHAT? Another TIE? Yes, when I grade each category we get a very interesting TIE ... this really doesn't surprise me as these 2 companies are rocks! I do LEAN Southern Company as I currently own shares but I've owned Dominion as well and have been wanting an excuse to get back in ... so take this for what it's worth ... good steady eddie Covered Call trade opportunities for the LOW RISK, LOW REWARD trader ... which isn't a bad thing and in fact I might just do a 30 day, 0.30 Delta on my SO shares this coming week. | |||||
| The BONUS Deeper Dive! | |||||
| #8 - More number that help us Up Our Game! | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| FFTY | ST50 | S&P 500 | FFTY | ST50 | S&P 500 |
| - | - |  | - | - | |
| Does either of these companies have Earnings Report (next 30 days) | |||||
| November 3, 2020 | - | November 5, 2020 | |||
| ~ | Feb 09, 2021 - Feb 15, 2021 | ~ | Oct 29, 2020 - Oct 29, 2020 | ||
| Verify-D | Verify-SO | ||||
| Dividend 2% | EX-DATE | Ave Vol | Dividend 2% | EX-DATE | Ave Vol |
| 4.39% | Dec 03, 2020 | 3.552M | 3.94% | Nov 13, 2020 | 3.953M |
| Verify-D | Verify-SO | ||||
| What story is the chart telling you? | |||||
| StockCarts | Finviz | BarCharts | StockCarts | Finviz | BarCharts |
 |  |  | | ||
| View Chart-D | See Support-D | View Chart-D | View Chart-SO | See Support-SO | View Chart-SO |
| I hope you enjoyed this Covered Call Stock Showdown blog ... as always you know this is for entertainment and before EVER investing a nickel of your hard earned money you need to do your research or what they call due diligence ... no, nada, zip zilcho stock recommendations were made here ... this ALL should be your STARTING POINT for determining if either of these companies meet your stock investing risk profile. Good luck everyone! | |||||
| Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its preformance. I have risked my own money and am accountable for the trade results. | |||||
| Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. | |||||
| Trading stocks and options have risk. Required reading prior to placing money at risk with options is the ODD which is posted below. "The Characteristics & Risks of Standardized Options" Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options. | |||||
| - http://www.optionsclearing.com/about/publications/publication-listing.jsp | |||||
| Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | |||||
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