PENN - Tesla stands out in BofA list of best covered call options plays: Alpha Tactics

G0d4ather/iStock via Getty Images The WallStreetBets crowd has put the options spolight on deep-out-of-the-money calls for those beetting on a huge stock price surge. But for those who own shares where they see just a little upside from current levels, writing (selling) covered calls can be a way to boost returns. "The strategy is best suited for names the call seller has a neutral short-term view on, as a call sells the right to upside participation beyond the call strike for a fee," BofA equity-linked analysts led by Gonzalo Asis explain. "Covered call writing is not a hedge and maintains full downside risk." "While covered call strategies will underperform stocks in fast bull markets, they will still realize significant profits," he adds. "Covered call strategies tend to outperform outright stock ownership in flat, down and slightly up markets." BofA looks at 5,000 overwriting positions in the Russell 1000 (IWF) with

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Tesla stands out in BofA list of best covered call options plays: Alpha Tactics