This report was complied with the market live and the VIX at 22.58, the S&P at 1,178.34.
The VIX has increased since our last report while the S&P has declined.
NOTE:
This group are pretty much split with 6 of the 11 stocks performing best to the November expiration date. This date is 3 days away. For most of these stocks, the near dated expiration provided twice as much in the form of Days earning. However, there are another 31 days or ~10x the period to the next date. Depending on your cost to trade, the expenses could overwhelm any incremental earnings. The example would be trading to the near date would require a ticket or transaction charge. If the option were to expire worthless, you would then enter into a trade for the next expiration date and incur another ticket charge. If the sum of the ticket charges are equal to or greater than the net additional basis points earned between the two dates you would actually lose money on an operational basis based on the cost of implementing the trade! It is these additional charges you need to me conscious of and we cannot advise you these matters only alert you to them, as each investors profile is different.
Scott's Investments presented the stocks reviewed on this report on Seeking Alpha in an article entitled "11 High Yield Stocks to Buy Now".
AEE and MCHP are both new additions to our database.
AEE Ameren Corporation - This stock is new to our database. The offering of strikes for this stock is poor and the in the money strike provided the best results for our model. Because of the wide range between strikes the RVI's are impacted.
CMS CMS Energy - December offered the best value and this stock was 2nd highest in SSR of the group. Both scenarios are for in the money calls.
CTL CenturyLink, Inc - The near dated scenario is in the money Nov while the far date is out of the money Dec. The record date for the dividend is 12/02. The RVI's are high and the price range of this stock over the past 52 weeks is WIDE.
FTR Frontier Communications Co - #3 is SSR of the group, with the near date in December and the far date February. The dividend is paid in December.
MCHP Microchip Technology Inc. - This stock is new to our database. It is #3 in Days earning and either date earns the dividend as it pays this week. RVI's are rich.
MO Altria Group Inc. - A perennial favorite of ours. #1 in Days earnings of the group. The dividend is paid in Dec with a Dec record date. RVI's are in the 70's.
PM Phillip Morris - A perennial favorite of ours. Its profile is not as attractive as MO. It ranks 6 in Days earnings and last in SSR and has high RVI's.
POM Pepco Holdings Inc - The options scenarios shown are for Dec and Feb. The 52 week price range is narrow so RVI's are wonky. The strikes are in the money on both scenarios shown.
Q Quest Communications International Inc - Note the strikes are different for the scenarios shown. Q is not a stand out in either scenarios shown relative to the group. The Dividend dates are December. The RVI's are high.
VZ Verizon Communications Inc - The strikes shown are barely in the money. RVI's are rich.
WIN Windstream Corp - Odd that it is #1 in Days earnings and #11 in SSR. The near date (Dec) is out of the money while the far date (Feb) is in the money. The far date gets the late Dec record date for the dividend. Funny how math works sometimes. RVI's are high.
*Note: the tables shown are embedded .jpg files. This means that you can: 1) double left click them with your mouse to enlarge them, or 2) right click them with your mouse and choose to open them in a new window or tab, print, save, etc.
As with everything we post, we may or may not have the stock and/or strategy in place in any one of our portfolios or may add it at any time. We do not make any buy or sell recommendations. We provide basic analytical research, some short commentary of the results and encourage you to do your own thorough due diligence prior to any purchase or sale.
