Attractive call overwriting opportunities for Russell 1000 stocks - JPM

JPMorgan analysts shared a list of attractive call overwriting opportunities within the Russell 1000 (NYSEARCA:IWF).

In JPMorgan’s U.S. Single Stock Volatility Chartbook report, analysts use five technical and fundamental indicators with equal weighting to time the selling of stocks, and two quantitative indicators with equal weighting to gauge the cheapness or richness of their implied volatility.

“The call overwriting signal will be triggered if the sell signals are greater than the buy signal, and if the volume richness signals are greater than the cheapness signals,” they said.

These are attractive three-month 105% call overwriting candidates:

• Raytheon Technol (RTX) - Sell Call, 3-month 105 Call % premium: 2.4, 3-month 105 IV: 20.5
• Occidental Pete (OXY) - Sell Call, 3-month 105 Call % premium: 3.2, 3-month 105 IV: 24.1
• Spotify Technology (SPOT) - Sell Call, 3-month 105 Call % premium: 7.1, 3-month 105 IV: 43.3
• Hasbro Inc. (HAS) - Sell Call, 3-month 105 Call % premium: 4.9, 3-month 105 IV: 34.8
• Eaton Corp. Plc. (ETN) - Sell Call, 3-month 105 Call % premium: 3.6, 3-month 105 IV: 26
• General Dynamics (GD) - Sell Call, 3-month 105 Call % premium: 1.8, 3-month 105 IV: 17.7
• Marathon Oil (MRO) - Sell Call, 3-month 105 Call % premium: 3.9, 3-month 105 IV: 27.7
• Generac Holdings (GNRC) - Sell Call, 3-month 105 Call % premium: 7.2, 3-month 105 IV: 43.8
• Valero Energy (VLO) - Sell Call, 3-month 105 Call % premium: 4.3, 3-month 105 IV: 30.5
• Devon Energy Co. (DVN) - Sell Call, 3-month 105 Call % premium: 3.2, 3-month 105 IV: 26