Best stock for covered call?

[VanHalen666]

Hi guys,

I read a guide on covered call writing that said the best stocks for covered calls are the "slow mover" type. eg Verizon, General Mills, General Electric etc.

Do you agree that these are the best stocks to use for covered calls?

Or are growth stocks better? like Paypal or Nvidia for example.

Thanks

I think it is best to look at several factors:
- stock that you are neutral/bullish.
- relatively large market cap, so the stock is not easily manipulated.
- relatively liquid options, i.e. small bid-ask spread.
- reasonably prices, i.e. somewhat elevated implied volatility.

Other factors to keep in mind:
- are you selling ITM or OTM calls?
- how far are the calls?

I like to do some analysis using a simple spreadsheet. For example, I like AMD right now. My spreadsheet looks like this. Selling a call at $80 or $82.5 seems the best options.