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Daily Call Sheet Focus: Ford

01.12.11

I will start out by explaining the purpose of this series of articles. I am trying to accomplish two objectives with this series:

1) Provide an easy-to-follow explanation of how to use call options to enhance returns on investments held for the long-term. To accomplish this goal I use an example each day of a company whose stock is actively traded and widely held. I do not provide a recommendation, per se, on the stock I use in the example. I do provide a 12-month target price for the stock, that I develop and use to illustrate how to determine the best covered call option available on the stock as of the market close from the previous day. If readers want a more detailed explanation of the overall strategy, they can find it in my inaugural article titled “Daily Call Sheet Focus: Bank of America” . In that article I discussed why selling calls makes sense for long-term investors and provide a detailed explanation of the strategy, along with a basic tutorial on call options including term definitions.

Source: Seeking Alpha