Schaeffersresearch.com: “…a year-end buying frenzy is on hold, unless the SPX can break out above its year-to-date breakeven and 200-day moving average, located in the 1,260 area. Without a technical and/or positive fundamental catalyst, the market remains prone to more whipsaw movements. From a longer-term perspective, though, the sentiment backdrop continues to favor the bulls.”
ChartAdvisor.com: “The bottom line is that the markets remain quite vulnerable despite the fact they could be close to setting higher lows above the November pivot lows. One factor that may work in the markets favor is that the indexes are starting to get oversold after two weeks of selling. We have been expecting strength towards the end of the year, but the markets have not been making it easy. The indexes remain vulnerable in their current positions and much will be decided in the next week. If the markets dip under their November lows, it could lead to much lower prices. However, any bounce from these levels could catch short sellers off guard and lead to a break above the current consolidation.”
Schaeffer’s has been bullish on CMG and AZO for a very long time.
CMG: Near/At the money monthly covered call (exp. Jan. ’12) yields ~3.67% (or 11% with margin leverage factored in). AAPL’s monthly covered call (exp. Jan.’12) yields 3.65%, the same as CMG.
CMG’s 2-yr chart beats AAPL.
In conclusion, CMG and AAPL are both good candidates, but CMG seems to be even better.
AZO’s option premium is too low to be of interest to me.
