I'm of just the opposite opinion --- to me, it looks like the market will rocket higher next week. After the run up Tuesday, we've been in a side-ways correction.
and the number of points Spy goes up or down? Any site that shows the relationship?
a more conservative covered call play is to sell the in the money 10.50 calls. With WLT at $11.00, the 10.50 calls expiring Friday [just 4 trading days] bid 81 cents ask 85 cents. That is a 31 cent premium [above $11. purchase price] ,about 2.8 percent return for 4 days as long as WLT can close at 10.50 or higher on Friday.
Another way of looking at this is the cost is reduced from $11.00 to 10.19 and the 31 cents [10.19 to 10.50] is a return on $10.19, and not $11.00.
[commissions lower the return]
the idea is to buy the stock just for the covered call play. the call is sold immediately after the stock purchase - going after the hefty premium. If it gets called way, then repurchase on Monday and -and then sell the next week's call again. Only get hurt if the stock falls more than the option premium [which can and does happen]
With WLT at $11.00, the $11 call expiring this Friday bid 53 cents ask 56 cents. That is about 5 percent premium for 4 trading days. Hefty premium. Appears a good candidate for a covered call write, IMHO.
VIX went below 10 several times 2004-2007. what is it now 13 or 14?, hardly a record low.