Wednesday, November 11, 2009
Genco (GNK) Rallying: Consider Covered Calls
Genco Shipping is putting in a nice rally today up nearly 14%, but as I've stated in previous reports, this is a high beta stock and expect 5% daily moves.
I suggested this stock in October @ $22.90, also covered call Jan $25 GNK-AE for $1.70 lowering the coast basis to $21.20. I also suggested that those wishing to add or enter GNK to do again at $19.50 ~past post~. Well for those that did so with GNK @ $23.50, I'm suggesting to consider selling covered call options here. The Jan $25 GNK-AE is at $1.80 bid. Sell it here and lower you cost basis from $19.50 to $17.70. If called @ $25 by Jan. opex the profit would +41%...NOT BAD!
*click chart to expand image