LogFAQs > #953678839

So I just learned that the way to figure out which stocks offer the best covered call options is to divide its current price by the current bid price. The higher the number, the more premium youll get. I plan on identifying the highest ones, setting a call for the lowest strike out-the-money strike price, and taking the premium. I dont care how much profit I lose out on by setting a low strike price. I just want weekly gains.

Maybe someone can confirm, but my understanding is that when a high premium value is offered for a low strike price, its because the stock is expected to go. Not that its expected to go down.