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In a prior post last November, the 'Analysis Sheet' used by the Covered Calls Advisor to analyze the relative worthiness of a particular covered calls investment was presented. As mentioned then, the 'Analysis Sheet' is a 'work in progress' in the sense that periodic refinements are made to the sheet to reflect this advisor's preferences as to the most important indicators and their relative importance in analyzing a potential covered calls investment.
Recently, there have been several posts on the Yahoo!Groups 'justcoveredcalls' site related to which factors should be used when analyzing a potential covered calls investment -- several people are searching for a disciplined, objective, and quantitative decision-making approach that incorporates a variety of indicators (aka metrics) in their own analysis. This is encouraging to this Covered Calls Advisor because it is precisely the approach advocated here.
Below is an 'Analysis Sheet' for this advisor's current largest position, which is in Microsoft:
This 'Analysis Sheet' includes 37 financial metrics in 9 categories, which is a much more detailed approach than most investors would be willing to undertake. But for those of you who are seeking a more objective, quantitative approach to your covered calls analysis process, reviewing the categories and the financial metrics on the spreadsheet above should give you some ideas that you might consider including as part of your own analysis.
As always, I welcome your comments or questions.
Simply click on the 'comments' link below to provide your feedback.
Regards and Godspeed to All,
Jeff
