Folks, JCP is noteworthy of your attention…. Today, I scalped (intraday trades) it 33 times in ranges of 12 to 25 cents.  The stock made an intraday 52 week low of 43.40.  For those looking to establish a “buy and hold” postions in retail, JCP jhas been beaten from 68.00/share.  I recommend buy the underlying shares and write “out of the money” Dec strike 45 calls which are paying a staggering 2.70/contract (100 shares).  If the stock is below 45 by end of Dec, you get to pocket the entire premium, keep the shares, and have an oportunity to write a new set of Jan 45 calls.  All in all, the shares are worthy of dollar-cost- averaging.  Therefore, the current share level is a good entry.

Direct your focus to Yahoo (YHOO). The shares are down from a recent high of 32 after the tech sell-off last week. At $25.30, writing the Dec strike 25 calls are a great hedge against the underlying shares to safeguard further downside. You pocket literally an intrinsic value of 1.60/share on the hedge. Thereafter, the shares will be a good buy and hold regardless if they’re below or above 25 by Dec expiration. The shares will be a very good candidate for the following strike of 25 for months.